Lobbying and Public Affairs in the UK: The Relationship to Political Marketing Charles Phillip Harris A thesis submitted to the Manchester Metropolitan University in partial fulfilment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Retailing and Marketing The Manchester Metropolitan University September 1999 DECLARATION No portion of the work referred to in this thesis has been submitted in support of an application for another degree or qualification of this or any other university or institute of learning i ABSTRACT This is a study into political lobbying and how it has become a feature of modern, strategic business marketing. It includes the first longitudinal study of UK Political Party Conferences over the period 1994-98 as market places for ‘business to business’ marketing as well as other political lobbying activity. The research focuses on the lobbying of government in the UK for strategic market advantage. Levels of activity, specific features and relationships are explored and theoretical constructs proposed for the development of a general theory of lobbying as part of relationship marketing. In the UK lobbying is a very difficult profession to research because (by its very nature) it is a relatively quiet and discreet profession, unlike in the US where it is regulated and visible. Previous studies of lobbying in the UK are sparse and have focused on its growth and particularly the rise of commercial lobbyists, who hire their services as consultants to causes and organisations. This thesis uses Layder’s (1993) ‘Resource Map’ approach to construct a realistic model of political lobbying and its relationship within marketing. It adopts a network approach (Häkansson, 1982) combined with ideographic data collections to explore and evaluate political lobbying and its relationship with marketing. This suggests that the growth of regulated markets, globalisation and transnational government are the critical reasons why lobbying has become of such strategic importance not only to governments, but also to organisations, industries and consequently management. The study uses interviews with senior public affairs executives, politicians, civil servants, and ‘not for profit’ campaigners and organisers to research issues and emerging practice. A case study on Sunday Trading is developed to outline the features and use of political lobbying and marketing to gain strategic advantage. This is supported by a number of case histories which include The National Lottery, Small Pharmacists, Food Labelling, Local Government Planning, Drug Patents, Energy Tax, Television and Regulated Industries which are explored and the principal features and emerging practice outlined. The link between regulation or position in a market and levels of political lobbying activity is explored and theoretical constructs proposed. Factors and skills that have lead to successful lobbying are then investigated and a suggested model of how this could be considered as part of modern political marketing is proposed. Future areas for research are then discussed. ii DEDICATION To Irene for all her support and patience in giving-up so many weekends. They will be restored soon. Also to Albert and Miriam Harris, my parents, who taught me to explore, be an individual and to never give up. iii ACKNOWLEDGEMENTS This thesis is a study of an area where access is privileged, limited and closed to many. To gain entry into party conferences, obtain information and interviews in political lobbying, required the support of a large number of friends, colleagues, and a network of contacts. I therefore owe thanks to a large number of people who supported the research and trusted me enough to allow me access to professional relationships. The study has evolved as the data has grown and analysis developed. This is reflected in the shape of the thesis and its ethnographic underpinning. I would like to thank in particular Professor Barry Davies for his academic guidance and support throughout the research and writing of the thesis. Professor Neill Nugent for his helpful comments in making me more aware of the developments and intricacies of the political science literature. Professor Tony Lowe who at a critical time provided moral support, intellectual sustenance, to complete this study. Rob McLoughlin, chairman of Precise Communications and Granada TV who introduced me to the joys of the Labour and Conservative Party conferences and showed me how a regional stakeholder network was developed and stimulated for the benefit of the North West. In discussions internally and externally to MMU support has come from a number of individuals, but the following colleagues have been particularly helpful in the development of the research: John and Nicholas O’Shaughnessy, (Judge Institute, Cambridge University), Richard Elliott, (Exeter University), Hanne Gardner (Manchester Metropolitan University), Morris Holbrook, (Columbia Graduate School of Business, New York), Bruce Newman (DePaul University, Chicago) and Jan-Ake Törnroos (Swedish School of Economics, Turku). In addition I have attended and presented papers on my research, at a number of conferences and seminars over the past five years. I have received some very useful comment from peers through this process, which has helped sustain and develop my ideas and research. I have found the work and contributions from the IMP group of researchers particularly useful. In addition, the help and support of Leighton Andrews, was most illuminating and welcome throughout the study. Lastly, but by no means least, I owe a great debt of gratitude to Heather Standeven for all her efforts in producing the final processed text for the thesis. Also, Chris Bagley for helping with the graphics and Irene Harris for her strength of character in getting her husband to complete the task. iv TABLE OF CONTENTS Chapter Page Abstract ii Acknowledgements iv Table of Contents v List of Tables vi List of Figures vii List of Appendices ix Abbreviations xi List of Photographic Plates in Preface xiv One Aim and Scope of Study 1 Two Political Lobbying: Definition and Demystification 22 Three More Questions than Answers for Management Research: 46 Issues Emerging from the Literature Four Method, Questions and Reflection 77 Five The New Market Place: Business to Business Marketing and 114 Lobbying at Party Political Conferences: An Assessment of Activity Six The Rise of Strategic Political Lobbying and Public Affairs 163 in the UK Seven Light and Dark: Evidence and Enquiry Gleaned from UK 209 Politicians and Civil Servants on Political Lobbying Eight Discourse, Debate and Management Application 247 Nine Political Lobbying: Theory Development and Application 285 Ten Of Ends and Means: Conclusion 321 References 333 Appendices 361 v LIST OF TABLES Table Page 1 General Background Of Practitioners 25 2 A Conceptualisation of the Political/Strategic Lobbyist Role 27 3 Political Lobbying - Key Functions 36 4 Key Functions of Government and Public Affairs Work 43 5 Problem Shifts and Business Theory 87 6 Layder’s Research Map 91 7 The Managerial Approach and the Network Approach Compared 98 8 UK Party Conferences, by date and location attended over the period 100 1994-98 as part of research 9 Attendance of Representatives at Liberal Democrat Party Conferences 132 1992-7 10 Policy Sessions and Interests in attendance at the Labour Party 135 Conference, Blackpool, Monday 30th September to Thursday, 3rd October 1996 11 Advertisements Placed in Official Party Publications, 1994-97 141 12 Exhibitors at Party Conferences, 1994-97 151 13 Fringe Events at Party Conferences, 1994-97 157 14 Checklist for Effective Strategic Public Affairs Management 278 15 Evolution of Modern Strategic Public Affairs 287 16 Shopping Hours Reform Council (SHRC) 304 17 Associates and Supporters of Keep Sunday Special Campaign (KSSC) 305 vi LIST OF FIGURES Figure Page 1 The Role of Political Lobbying as a Feature of Political Marketing 14 Communication with Government: A Model 2 The Analytical Approach, the Systems Approach and the Actor 84 Approach In Relation with Research Perspectives in Social Sciences 3 The Current Marketing Mix (4Ps) Paradigm of Marketing and the 85 Future Relationship Marketing Paradigm 4 The Embeddedness of Relationships 95 5 The KITE Model – A Framework for Analysis of Relationships 96 6 ‘Not for Profit’ advertisements in Official Party Conference 143 Publications, 1994-97 7 Private Sector Advertisements in Official Party Conference Publications, 145 1994-97 8 Advertisements by Sector in Official Party Conference Publications, 145 1994-97 9 Exhibitors by Sector and Percentage Share at Party Conferences, 153 1994-97 10 Exhibitors by Sector and Percentage Share at 1994 Party Conferences 154 11 Exhibitors by Sector and Percentage Share at 1997 Party Conferences 155 12 Fringe Meetings Held at Party Conferences by Sector, 1994-97 158 13 Relationship Marketing at Party Conferences: The New Policy Network 160 14 Principal Stages in the Legislative Process for Government Bills 261 15 Graphical Illustration of the Relationship Between Government 290 Regulatory Policy Level and Public Affairs Activity 16 The Catch 22 Matrix of Government Regulation and Political Marketing: 291 The Direct Relationship between Regulation and Political Lobbying 17 Machiavellian Marketing Graph: Illustrating the Relationship Between 292 Market Share and Levels of Public Affairs Activity Necessary to Ensure Competitive Position vii 18 The Machiavellian Marketing Matrix: The Isotropic Relationship 293 Between Market Share and Levels of Political Lobbying: The Maintenance of a Dominant or Monopolistic Position in a Market Sector Through Political Lobbying 19 Basic Structure of the Network Approach Applied to Lobbying 297 20 An Organisation Centred Lobbying Network 298 21 The Role of Political Lobbying as a Feature of Political Marketing 328 Communication with Government: A Model viii LIST OF APPENDICES Appendix Page 1 List of Publications by Author: Reflecting Evolution of this Research 361 Study 2 List of Organisations Placing Advertisements, Exhibiting or Sponsoring 364 Fringe Meetings at the UK Party Political Conferences, by Sector, 1994-97 3 Advertisements from official Party Political Conference Publications: 404 Examples 4 Photographic Record of Party Conference Exhibitors 1994-98 406 (selected examples) 5 Photographic Record of Sponsored Fringe Events at Party Conferences 412 1994-98 (selected examples). 6 Table of Blackpool Hotel Venues Officially Listed and Used by the 1995 414 Conservative Party Conference. 7 Scale, Media Operations and Security at Modern Party Conferences and 415 examples from Photographic Record. 8 List of Subsidiary Interviews, Discussions and Specialist Presentations 419 Attended Involving Business Managers, Public Affairs Practitioners, Pressure Groups and Associated Respondents 9 List of Prime Interviews with Political Lobbyists and Public Affairs 421 Executives by Date with Biographical Details 10 List of Subsidiary Interviews, Discussions obtained and Specialist 426 Presentations Attended involving Politicians, Civil Servants and Associated Respondents 11 Interview held on 4th June, 1996, with Anthony Weale, Head of 428 Government Relations ICI Plc at Group Headquarters, Millbank House, London. ix
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