The Scottish Referendum - Let's deal with that PEST......

Well, today’s the day that everyone is talking about – the Referendum on whether Scotland remains in the UK or goes independent ending a union that is the United Kingdom. 

Everyone is talking about it and, before the ink is dry on the ballot papers, the press is rife with dramatic headlines about what will happen when we all get up tomorrow morning.  If it’s “aye” then we’re all facing change – north and south of the border.  Things we’ve had as part of our lives for generations may change or even be consigned to history.  What will happen to the NHS? Will the Queen still be head of state?  What would happen to the BBC?  What about the Armed Forces?  Would there even be a new border control?

Factors in the external Macro environment, that form the acronym PEST or PESTEL, are usually theoretically explained to marketing students as almost remote to an organisation but they could now be very important particularly if your business involves customer segments and markets in Scotland.  Whilst on this day, the Scottish people have control in their hands with their individual vote, once the deed is done then these factors are uncontrollable but perhaps not as remote to your business as you would like.

Let’s just review some of these in the context of a “yes” vote:

Political / Legal – clearly the most prominent factor here in terms of headlines.  The Scot’s as part of an independent nation would have total control (that’s the point after all) but what about the English parliament?  Lots of implications regarding the Conservatives and the PM himself and even if it’s “nay” then there’s political strife ahead as more powers will be devolved anyway.  Will Scottish MPs have to leave parliament and what affect would that have?

Economic – Would Scotland’s economy fare better inside or outside the UK?  The “yes” camp say it will.  How would the economic turmoil we’ve seen the past few years affect a smaller independent country?   However, doubters question the possible loss from not having direct access to the rest of the UK for its goods.  Some multinationals have said they’ll relocate their headquarters from Scotland to England.  There would be big changes ahead with a new currency and the amount of debt that parliament have said will transfer to Scotland’s hands.  All this change could affect jobs, taxes, disposable income and pensions.  

When a business markets internationally exchange rates are of course important and Scotland as a republic will be errr international as far as a marketer is concerned.

Inevitably, all this uncertainty will have a dampening effect on consumer sentiment, business confidence and investment intentions which could be as gloomy for us all as a wet weekend in the Outer Hebrides.

Sociological – our culture and heritage is what makes us British.  We’re famed for it and a little teased by it at times, let’s face it.  There will be a need for new Union Jack, perhaps new National Anthem (and the Scot’s would have to agree on what theirs would be) and what about the Queen?  The latter question may not have a direct effect on marketing per-se, unless you make mugs and tea-towels with Royal Family branding, but a lot of companies market “Britishness” and an erosion to that, however slight, could cause us to choke on our Earl Grey tea.

Environmental – As I am contemplating whether there are any issues here that we could discuss, my eye glances at a snippet in the Daily Mail about Shetland, that oil-rich island very very far north.  There was some discussion in the media about Scotland being able to capitalise on being oil rich as an independent nation but, before we start contemplating a Scottish Dallas, the Shetland Islanders, in the event of a “yes” vote, may make the decision to break away from Scotland and remain as part of the UK. 

The Scottish government says Scottish renewable energy is the most cost-effective source of low-carbon electricity, and enables the rest of the UK to meet its climate change targets.  In return, financial support for renewable energy schemes and the transmission network would be met by consumers across Britain.

The UK government says any decision to import energy from an independent Scotland would be taken on a "commercial basis" i.e. if the numbers don't stack up it won't happen.  That could leave consumers in Scotland to foot the bill for renewable energy schemes and investment in the transmission network.

Technological – no discussion on external environmental factors would be complete without switching to technology.  Nothing particularly springs up here (and analysis sometimes results in “analysis paralysis” after all, so my students tell me) but if we have border controls resulting in passport checks, it reminds me of the chaos that engulfed the UK passport agency this summer.  Could the Scot’s have a better techy process for issuing their passports in a timely fashion?  Aye, it’s possible and if they do, can they sell it to the English please?

This referendum is unchartered territory and we’ll have to wait and see tomorrow what the future of the UK will be.  One thing’s for certain, marketers everywhere will be affected and will need to adapt and change, just as they should.

Are you a mug or something?

As soon as England were knocked out of the World Cup, somewhat inevitably, supermarkets and other outlets discounted all the England merchandising hoping to recoup some of the now-wasted investment. Prices of mugs, teddies and even the ubiquitous flag all hit rock bottom, just as our national team have done in their dismal qualifying games.

On a visit to a supermarket on Saturday, the merchandising is still there and it seems they can’t give it away. The displays are shunted to a sorry corner but are nonetheless re-marketed as “summer essentials” – a marketer somewhere is hoping that we’ll want a St George’s flag to adorn the BBQ scene so I guess they’re pinning their hopes that we do actually get a BBQ summer then? Or perhaps they’re anticipating future demand that we will stock up for 2018 – after all, Roy said we’d be ready by then so get a bargain now!

As well as lots of merchandising going spare, one souvenir manufacturer even had to contend with a horrific marketing gaffe by mixing up the most powerful man in the world and England’s Chris Smalling. Trying to sell 2,000 mugs emblazoned with the faces of England's World Cup flops would usually be a hard task, but the hilarious mistake has apparently caught the public’s imagination.

It seems the mug with Barack Obama’s face as a defender is proving popular as a novelty item, with the BBC reporting a quarter have been sold to people in the US and that there are "not many left".

Thankfully for the poor newbie who made the mistake, and the naughtier manager who obviously didn’t proof it properly, it seems they have unconsciously tapped into something Americans perhaps love about us – our sense of humour. Marketers have long-since known that those across the Pond love our accents, the royal family and our straight-talking brashness (thanks to Simon Cowell’s brand) and now it seems they love our humour, however unintentional it was on this occasion.

International marketing has many facets – the main one is ensuring you understand and respect cultural differences. If only marketers here had thought a bit harder:-

· Postman Pat had problems in Japan – the cartoon character is drawn with three fingers – a sign he is a member of the Japanese mafia (Jakusa).

· Honda introduced their new car "Fitta" into Nordic countries in 2001. If they had taken the time to undertake some cross cultural marketing research they may have discovered that "fitta" was an old word used in vulgar language to refer to a woman's genitals in Swedish, Norwegian and Danish. In the end they renamed it "Honda Jazz".


Our message to the poor soul who made the error – don’t worry. A) it could have been worse – Chris Smalling’s picture could have been put on the USA team’s mugs and B) a certain future on the US comedy circuit awaits you should your apprenticeship not work out for some reason.

Want to know how to be an effective international marketer?

This week, I wanted my class of International Marketing undergrads at #AngliaRuskin to understand the challenges of the global marketplace – what environmental factors could create barriers to entering a new country or region? I realised that the most valuable insights I have about working internationally come from my business meetings in Europe and America and collaborating with colleagues in satellite offices, not from a text book. So the slide deck and reading to one side, we set to pool our own knowledge and experience: what a diverse bunch we proved to be with students from China, India, the Emirates, Italy, Lebanon, Mongolia, The Congo and just myself from the UK!

Political issues were really problematic in some countries where bribery and corruption appear to be the rule – my students from Italy talked about Mafia payments and my Indian students felt that bribery has become normalised in many situations. We talked about cultural norms – how personal presentation is crucial in some countries, respectful dress codes, socialising with prospective business partners to get to know each other before contracts can be discussed, giving appropriate gifts and understanding hierarchies in organisations.

Global marketing is about treating the world as one marketplace and segmentation based on characteristics beyond geography, however working effectively internationally as a professional marketer means understanding the influences from that country or region’s environment, as well as the appropriate way to do business, behave and present yourself.

No Balls Marketing's client @worldworkltd produces training tools to help businesspeople understand how they can work better with international colleagues. Abby Beckley, Client Relationship Manager at WorldWork, says marketers cannot expect their marketing activities to succeed if they head into a foreign market full of assumptions about cultural stereotypes. She says:

"Understanding your own global competencies and getting guidance on the areas where you fall short translates itself into a powerful tool when it comes to negotiating and working successfully on an international scale. With all the various emerging markets on the Asian, South American and African continents - one language or style of marketing no longer suits all. Flexibility is critical as you engage in these different markets."

As we continue to develop professionally as marketers, and our businesses extend across borders, learning about new cultures and environmental differences will help us achieve our objectives successfully. As my students embark on a career in business, I hope their experience of studying in an international business school will ensure they are culturally aware and better able to communicate and negotiate with colleagues and partners abroad – wherever in the world they base themselves!

#workingabroad #intercultural