Crisis Management

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From the course by IE Business School

Integrated Marketing Communications: Advertising, Public Relations, Digital Marketing and more

364 оценки

IE Business School

Integrated Marketing Communications: Advertising, Public Relations, Digital Marketing and more

364 оценки

Course 4 of 5 in the Specialization Marketing Mix Implementation

Just how familiar are you with a marketing communication campaign? Learn more about this key pillar in the marketing mix and use it to give the push your product or service needs. Through this course you will understand the most important issues when planning and evaluating marketing communications strategies and executions. You'll be able to combine the appropriate theories and models with practical information to make better marketing communications decisions. After completing this course you'll be able to use integrated marketing communications (IMC) in the process of creating valuable brands and winning your consumers. IE Business School professor Eda Sayin will guide you through the process with the help of expert interviews from international marketing firms and will provide interesting real-life examples. After this course you will be equipped with the knowledge to ensure that you make the correct decision when it comes to communications and the placement of advertising and digital marketing.

From the lesson

Marketing Communications Mix

In this module we will work on the elements of the marketing communications mix. You will have access to the latest trends and tools that are used in integrated marketing communications. You will be able to use tools such as customer promotion activities, public relations, cause related marketing, crisis management, social media marketing, digital marketing, and search engine optimization for your products and services.

Sales Promotions9:09

Public Relations, Sponsorships & Cause Related Marketing8:39

Alternative Marketing6:06

Crisis Management7:33

Meet the Instructors

Eda Sayin
Professor
Marketing

[MUSIC]

In the previous lecture, we have learned about alternative marketing methods.

Some novel ways of creating news about our brand and how we can utilize

online platforms to communicate quickly and broadly with our consumers.

Social media and internet provide several challenges as well as opportunities for

marketing managers.

While internet and mobile communication channels make it much easier for marketers

to establish and foster relationships with consumers, the interacting nature of these

new media platforms allows any negative information to spread very quickly.

A crisis is something which poses a threat to the reputation of a company.

It may occur when the company makes an error, either deliberately or

undeliberately.

This could be anything from a member of staff who has behaved inappropriately to

a defective or contaminated product that might be harmful to consumers.

Sometimes our company does not do anything wrong.

But someone targets the company with unjustified or exaggerated negative news.

If the crisis is predictable, for example if we are closing a factory or

we need to lay off employees, then we can act

proactively to prevent the potential damage to our company's reputation.

However in most cases, crises are unforseen.

The basic steps of effective crises communications are not difficult.

The first step is to form a crisis management team with company lawyers and

senior executives of major business departments.

This team will be responsible for collecting information,

assessing the company's position regarding the crisis and

deciding on how the company should react to minimize the damage.

Ideally, potential spokespersons within the company should have been identified

and trained in advance.

In a very severe crisis, for example, if there's a loss of life due to

technological failure of the company, Chief Executive Officer of the company

should be the spokesperson to reflect the company's commitment to solve the problem.

We need to establish a monitoring system to see what is being said on traditional

and social media.

Knowing our stakeholders' reaction against a crisis

will allow us to correctly adapt our strategies and tactics.

It takes moments for a lapse of judgement or

process failure to go viral, trend, and make national headlines.

You must be ready to respond to crisis rapidly and decisively.

In our communications with the public, we need to show empathy and

demonstrate that we understand why people might be angry or upset.

We should very clearly, briefly, and

honestly outline what our company is doing to deal with the crisis.

In 1993, a complaint filed that a consumer found a syringe inside

a Diet Pepsi can followed by a second complaint the day after, and

the third complaint two days later.

Pepsi executives were concerned that these reports could be false, but

still investigated the issue.

No recall was ordered by the FDA, the American Food and

Drug Association because there were no reports of injuries or

any indication that the syringes were contaminated.

The media was creating panic among consumers with its display of a Diet Pepsi

can with a syringe.

The company recognized the magnitude of the crisis, and

pulled together a team of 12 company executives to form a crisis team.

Within a couple of days, company president Craig Weatherup was in front of the media.

Additionally, Pepsi instantly circulated a video news release and

a press release explaining the mechanics of the production process and

the impossibility of inserting foreign objects in cans during that process.

Pepsi worked closely with the FDA.

Their assistance was important in reassuring retailers,

not a single larger supermarket chain pulled off Pepsi from their shelves.

The complaints about the Diet Pepsi were proven to be hoax

when surveillance cameras in a supermarket captured the woman shopper

apparently inserting a syringe into a can of Diet Pepsi.

There have been more than 50 tampering claims and more than a dozen arrests for

filing false claims.

Pepsi put together a reassurance ad in response to the crisis.

It explained that the stories about Diet Pepsi were not true and that hundreds

of investigators could not find any evidence of support for a single claim.

Pepsi kept the public up to date and

showed genuine concern throughout the crisis.

Their efforts resulted in positive media coverage,

which in turn reflected positively on the company's image.

When faced with a crisis, companies may react in four different ways,

one option is to deny the blame, then the company should very

clearly demonstrate that the claims are incorrect and confront the accusers.

They usually pursue a lawsuit against the accusers to back up

their standing in the situation.

Silence maybe considered as an acceptance of the blame so

companies need to react quickly and

deny the blame before it starts negatively affect the company's reputation.

If the company is at fault, the best option is to apologize immediately and

not to blame others.

An apology is a good strategy especially with the crisis that is not very severe or

when the company cannot prove that they are not responsible.

People may forgive the company if they perceive the apology as a genuine one.

When company accepts the blame and

apologizes,the news value of the story dies out.

What else is there to talk about, right?

Hence, accepting the blame and

apologizing, minimizes the repetition and amount of negative publicity.

Deflection is another strategy that may be used if the problem is not severe.

Companies may try to deflect attention of the consumers from the problem to their

other activities, or past good work.

For example, a company may start an advertising campaign on a new

breakthrough product, or on its corporate social responsibility activities.

Finally, impression management is a strategy that is

used to project a certain kind of image to others.

The company attempts to reduce the negative impact of any event

that modify or negatively it's image.

Expressions of innocence, try to convince the public that the company and

it's leaders are not associated with the event in any way.

They provide excuses that are designed to convince the public that

the situation could not be possibly foreseen.

Crisis happen,

and respect can be gained by how they are managed.

As long as companies show empathy, demonstrate their commitment and

sincere effort to rectify the situation in a timely manner,

the negative effects of the crisis might be attenuated.

Not every crisis is detrimental for the company.

Companies may come out of crisis even stronger with successful

crisis management.

In the following lectures, we will have professionals from the field give us

interesting information on topics such as social media marketing, digital marketing,

search engine optimisation, and content marketing.

I hope you will find them very helpful.

[MUSIC]

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