Specific aspects of branding Flashcards
Examples of brands which went through a crisis?
Examples of brands which went through a crisis?
What is a crisis?
“A crisis is a major, unpredictable event that has potentially negative results. The event and its aftermath may significantly damage an organization and its employees, products, services, financial conditions and reputation.”
⇒ More important than ever, as consumers are taking an increasing interest in the ethical practices of the companies they buy from!
Crisis types:
Crisis types: Faux pas
Unintentional and external
e.g., controversial ad
Crisis types: Terrorism
External and Intentional
Crisis types: Accident
Internal and Unintentional
e.g., airplane crash
Crisis types: Transgression
Internal and Intentional
e.g., bribery
A new challenge:
News spread fast in times of social media!
Crisis Management Life-Cycle
Pre-Crisis:
- Can signals be detected (e.g. social media monitoring)?
- Prevention
- Preparation (e.g.crisis protocol)
Crisis:
- Recognition
- Containment
⇒ How to communicate with stakeholders
Post-Crisis:
- Recovery
- Learning
Crisis Communication:
Goal of crisis communication:
Diffuse the crisis‘ negative impact on the brand! Prevent severe damage to the brand‘s image and eventually restore trust.
“Choosing the right response can spell the difference between a brand‘s survival or even enhancement and its irreversable tarnishing”
- There is a large arsenal of communication tools available and you need to choose wisely
- Manager‘s need to see the crisis from the eyes of customer to pick the right response.
Three major questions:
- Is the accusation objectively true?
- How severe is the crisis?
- Do my customers have a strong personal identification with the brand?
The crisis communication arsenal to choose from and mix & match
I. Come clean
II. Polish the halo
III. “Not just me” response
IV. Inoculation
V. The “Yes, but…” response
VI. Rebuttal
VII. Vilify the Accuser
VIII. Denial
I. Come clean
What is it?
- Apologise quickly, express sympathy, accept responsibility, initiate action.
- Do so quickly.
- CEO as spokesperson.
For what kind of situations is it appropriate?
- Whenever the accusation is true!
II. “Polish the Halo”
What is it?
- Bolster brand image (e.g. through advertising) to avoid spillover effects
- Together with/ after an apology
For what kind of situations is it appropriate?
- Works particularly well on consumers with low brand identification
III. “Not just me” response
What is it?
- Express that crisis is not unique to brand but e.g. shaped by market conditions
For what kind of situations is it appropriate?
- Works well with with identified customers who are prone to counterarguments
- Make sure it does not look like you are just shifting blame
IV. Inoculation
What is it?
- Announcing before accusation breaks, that there will be a crisis but not as bad as it might seem
For what kind of situations is it appropriate?
- Again, works well with identified customers who are prone to counterarguments
- If you can anticipate crisis
V. “Yes, but…” response
What is it?
- “Come clean” plus providing an • argument that downplays the crisis
For what kind of situations is it appropriate?
- Works particularly well on consumers with low brand identification (as they will not come up with those arguments by themselves)
VI. Rebuttal
What is it?
- Point-by-point explanation of why the allegations are not true
For what kind of situations is it appropriate?
- If the accusation is severe but actually not true!
- Again, helpful for consumers who identify less with the brand.
VII. Vilify the Accuser
What is it?
- Not just providing a defensive argument but actually being offensive.
For what kind of situations is it appropriate?
- Accusation is not true
- If the false accusation is severe
VIII. Denial
What is it?
- Outright denial without providing much explanation
For what kind of situations is it appropriate?
- Accusation is not true Company identifies with customer
- Consumers do not perceive the crisis as severe
Crisis communication network
Crisis management summary
Different response strategies can be adequate, based on the situation.
- No response is a no-go!
- Speed of response is always a must.
- Communication must go through CEO.
- Have a detailed crisis plan at hand all times.
- Manage the whole crisis life cycle.
“Worst practice” Example: BP
Some take-aways…
- Functional brands often make use of pre-cognitive processes (brand- awareness is key here) and minimal cognitive processes.
- Different brand architectures result in trade-offs between autonomy and synergy
- Brand crises are potentially destructive for firms. Analysing crisis type, choosing adequate comms strategy, and managing the whole crisis lifecycle is essential.
