Lobbying – Senior Level Marketing

Pepsi Cola bribeImagine, you are a large Multinational Corporation (MNC) expert in a specific field. You are a portfolio brand holding brand of all sizes and specializations in the field that I just referred to. You hold 40+ % of the market. Your marketing budget is +100M (million) euro / dollars. What do you do?

Well, all this criteria and qualifications are necessary to say that you are not going to do things conventionally, and one thing you are probably going to look at is Lobbying.

Lobbying is an act of attempting to influence decision making of officials of government or other people responsible for regulation and legislation in a specific sector (which in the case of our imaginary firm is its specific field of its work). Lobbying also applies to hiring of the people who will be responsible for these legal aspects.

Lobbying is not illegal practice, if done publicly and within law, but for obvious reasons it has some controversy related to corruption and serving own interests, to the interests of the public. Lobbying might not be only done in a form of a bribes or other financial adding ways like presents and invitations to expensive VIP events, but also in non-monetary ways like arranging a meeting.

There are 12.000 estimated and registered lobbyists entities registered during 2012, companies like MNC Coca-Cola, which is reported to have spent over 9M$ dollars in 2009. This is nothing if you compare to firms like Patton Boggs LLP, which is estimated to have spent 452M$ between 1998 and 2012.

2012 US elections was one of the biggest and most openly accepted lobbying event in recent years. Top 5 lobbyists during these elections, by sector, are:

1) Finance, Insurance and Real State groups (640$M)

2) “Other” (540$M) – Individuals or parties that don’t belong to specific groups (usually people, not companies)

3) Miscellaneous Businesses (350$M) – e.g., manufacturing, textiles, consumer retail goods, gambling and tourism.

4) Ideology and Single Issue groups (320$M) – focus on a single-issue area such as abortion, the environment, gun rights or foreign policy.

5) Health institutions (250$M)

(Source)

Lastly, the conventional wisdom holds, you don’t need to be rich to be powerful, you just need to be well connected.

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