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an exploration of the continued political marketing activities of the Rudd Government as an extension of the Dann and Hughes (2008) Lessons from Kevin07™ paper, and an extension of the Newman (1999) and Needham (2005) perpetual campaign theory
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Political marketing During Office
The unresolved question of voter relationship marketing
Dr Stephen DannSchool of Management, Marketing and International Business, ANU
Marketing and Politics
• Marketing– system of exchange between customer,
marketer, organizations and society – creates a dynamic series of transactions
• money, ideas, loyalty and benefit
• Core philosophy – provide for the individual’s needs within the
capacity restraints of the organization and society
Our (marketing) assumptions
• Permanent campaigning is a reality– Needham (2005), Newman (1999), Howard (2004)
• Separation of political party campaigns and governing party campaigns – Insufficient divide currently
• Voters are trading a vote/support for “something of value”– emotive, irrational, intelligent and calculating– imprecise purchases of uncertain future outcomes
Relationship Marketing (Nordic School)
• Marketing [which] is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises [p. 138]– Grönroos (1990)
Relationship Marketing Practice
• Customer lifetime value – difference between the costs of attracting, keeping and
servicing the customer against the revenue generated by those activities (Berger and Nasr, 1998).
– explicit statement and calculation of the different value of each customer to the organization
• deliberate exclusion of low value customers – (O'Malley and Tynan, 2001; Dorrington and Goodwin 2002).
• Political applications of exclusion of low return voters could be found in the dogwhistles and wedge politics (Cottle and Bolger, 2008)
Is the Rudd Government using relationship
marketing?
Analysis 1
RM Condition Present How
ongoing or periodic desire for the product or service
Yes Election cycles
customer controls the selection of the service supplier
YesVoters elect the government through selective support of political parties
There are alternatives in the market.
Yes Multi-party political system
Brand switching is common, but can be prevented or minimized
YesDeclining party loyaltyswinging voter populations
Word of mouth is important YesCredibility of interpersonal messages ahead of party political statements
Ability to cross-sell products once the relationship is established
Yes non-campaign promise policy initiatives
Is the Rudd Government using relationship marketing?
• Example of trust, reciprocity and commitment in a single political statement:– …honours the RuddGovernment's
commitments, and allows us to look Australians in the eye and say we delivered the policies they voted for last November. We are doing what we said we would do.
Analysis 2: Tag Cloud
Recoded Cloud
Leximancer
• content analysis emulator
• machine learning protocol for textual analysis
• visualization of common themes and related concept groups from textual data – Smith, 2000
• unsupervised ontology discovery
Supervised Ontology
Commitment and the Budget Speech
Commitment
Is there a problem?
Key Takeouts
• Hallmark indicators of relationship marketing are present in the Rudd Government actions– Budget speech analysis
• Relationship marketing principles are not far removed from good government– Trust, reciprocity and commitment
• Relationship Practice is exclusionary by design– Voter Lifetime Value is not an appropriate way to
conduct government policy
Questions?