Transcript The Rich, the Poor, and the Terrorists

Positioning Terrorism in Marketing:
Research Propositions
Michael R. Czinkota
Georgetown University
and
Gary A. Knight
Florida State University
6th Annual International Business Research Forum
Global Security Concerns and International Competitiveness
The Fox School of Business and Management
Temple University - Philadelphia, PA
April 2, 2005
Part I
Why Marketing ?
1.
Marketing deals with consumers and markets
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2.
Terrorists disrupt consumer demand
Terrorism affects supply
Disruptions are direct and indirect consequences
Marketers are the first responders
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Imports and exports
Distribution and logistics
Communication with buyers and suppliers
Administration of pricing shifts
Why Marketing ? (cont.)
3. Marketers are well trained to cope with
cultural issues
■ Use of Language
■ Power of Persuasion
■ Meaning of Terms
4. Marketers are trained to develop empathy
■ Practice of Professions
■ Understand unintended consequences
Part II
Some Research Propositions
■ Firms may increasingly consider terrorism
when evaluating foreign markets
Terrorism may Become the Next
Segmentation Base
■ The more a country or region is affected by
terrorism, the less foreign firms may be likely to
purchase from that area
■ Firms may make essential inputs themselves
rather than buy them from suppliers in terrorism
threatened environments abroad
■ Firms may diversify their base of suppliers in
order to assure greater flexibility and continuity
■ To reduce their exposure to terrorism, firms
may decrease their foreign direct investment
activities and substitute exports
Terrorism’s Relationship
to National Wealth
■ Terrorists want “bang”
for the buck
■ (Rich) governments
can protect targets
■ (Rich) companies can
change business
models
■ Protection leads to
softer targets
Poverty Leads to Terrorism ?
Terrorism Cements Poverty
The poor have no choice,
but
FIGHTING TERRORISM MAY BE A
WAY OUT OF POVERTY
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