1. Positioning Terrorism in Marketing: Research Propositions Michael R. Czinkota Georgetown University and Gary A. Knight Florida State University 6 th 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

2. Part I Why Marketing ? 1. Marketing deals with consumers and markets ■ Terrorists disrupt consumer demand ■ Terrorism affects supply ■ Disruptions are direct and indirect consequences 2. Marketers are the first responders ■ Imports and exports ■ Distribution and logistics ■ Communication with buyers and suppliers ■ Administration of pricing shifts

3. 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

4. Part II Some Research Propositions ■ Firms may increasingly consider terrorism when evaluating foreign markets

5. Terrorism may Become the Next Segmentation Base

6. ■ 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

7. ■ 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

8. Terrorism’s Relationship to National Wealth

9. ■ Terrorists want “bang” for the buck ■ (Rich) governments can protect targets ■ (Rich) companies can change business models ■ Protection leads to softer targets

10. Poverty Leads to Terrorism ? Terrorism Cements Poverty

11. The poor have no choice, but but FIGHTING TERRORISM MAY BE A WAY OUT OF POVERTY

12. Support our Research! Provide us with your insights and thoughts at: http://msb.georgetown.edu/survey/terror