Lost in the Weeds : Understanding the Firm's Perspective of Regulations on Marketing Communications in the Canadian Cannabis Industry

Abstract: Background: Marketing communication is the process of communicating with the customer, this is all communicative materials that are produced by the firm in order to influence the consumer. Regulations are all the rules, instructions, memos issued by a market authority that dictate the ways a firm may present their brand. Important to gain the firm's understanding of regulations and the ways to work within them. Purpose: The purpose of this paper is to explore how external regulations impact marketing communications from the firm's perspective. Research Question: How do companies understand the impact of regulations on marketing communications and work within them? Theoretical framework: The theoretical framework was established using the marketing communications mix in combination with institutional theory, investigating the research question through the lens of institutional pressures. Methodology: This study used a qualitative and inductive approach, using a case study on the Canadian cannabis industry. Using purposive sampling and semi-structured interviews with three respondents to collect data. Analysing the collected data with a systematic coding process to objectively interpret meaning from the respondents perspectives. Conclusion: The conclusions of this paper were threefold. First, coercive pressure is the most observed form of isomorphic pressure as there has not been enough industry maturity to establish normative pressures which leads to a hesitancy of mimetic behaviour. Secondly, there are multiple layers of institutional pressures from various dominant actors within the shared organisational environment, which leaves firms feeling incapable of marketing. Lastly, personal selling is the most effective tool from the marketing communication mix due to the impacts of the regulations and the infancy of the market.  Contribution: Study confirms the findings of Asquith’s (2021) research. Multiple layers of institutional pressure in the industry. Infant markets are more susceptible to coercive pressure.