Saturday, December 29, 2012

Negative Publicity: Companies Could go Bankrupt





Crisis management, often referred to as risk or emergency management, is the process that implements strategies to counteract the negative affects of an event or action that can damage the reputation of an individual or an organisation.
Public relations professionals are constantly implementing campaigns heavily based in crisis communications theory to counteract negative publicity. Many marketers, however, have not grasped the value of crisis management and have shown an unwillingness to prioritise the function in business operation. 

When a negative news about a product or service from a company spread widely among consumers, it is all done by the company almost meaningless and may lead to the destruction to the company itself. The destruction was leaving behind a very badly. But when the investigation began to find the cause, it is often found that the cause was a small spark caused by the news source that seems harmless. News is not a problem that looks like it could damage the popularity of a product or service as the forest burned by a cigarette butt. It is like the perfect place for a problem that has disrupted business around the world. This is called negative publicity and encourage companies to have nightmares. 

Negative Publicity is the adverse publicity that a firm may incur due to a particular reason, which may lead to potentially disastrous consequences. It results in the firm’s reputation among its customers and competitors being badly tarnished. Needless to say, it hurts business real bad.


Like a cigarette butts can burn the forest, causing negative publicity may vary, for example, customer anger, disappointment former employees, Misleading interpretation of a blog / forum post / quote interview and spread unfounded rumors. While the allegations may be true, more often than not the reason that rumors inflict more damage.


This is a classic problems. A firm spends millions on promoting itself online through endless publicity campaigns. It places advertisements, sponsors discussion boards, forums et al till its name is well known to all those who matter. Then all of a sudden, one stray comment on how the last blog post by the firm’s CEO hurt the sentiment of a potential customer surfaces. Like all things that should not spread, it snowballs and garners attention from everyone who thinks he is somebody. The forums are now pasted with hate mail and the firm loses face overnight. The very tool of publicity, the Internet, has stung back and stung deep.


Publication negative impact very bad for the company, for example, clearly, the business is not growing under the negative publicity, the company may have to take back all of their products, the company shares could fall dramatically. All the consequences it may even cause the company to be out of the competition, and the company may even go bankrupt. To overcoming with the effort is look into the problem, work out a plan of counterattack, give out concrete proofs of safe-practices and follow up progress continually.


Of course, your goal should always be to steer clear of such occurrences completely. Dedicate a team to keep a sharp eye on all fronts, including the Internet(blogs, forums, social networks, search engine rankings, websites of competitors etc), for any comments or developments that might turn ugly. Although it can never be all-encompassing, it’s better to be aware of possibilities than being caught unawares.