EFFECTIVE MARKETING
COMMUNICATION IN THE CRISIS
PERIOD OF THE COMPANY
Ing. Kateřina Matušínská, Ph.D.
MARKETING COMMUNICATION 2/NAMK2
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
OUTLINE OF THE LECTURE
1. Crisis situation
2. Types of crisis
3. Crisis planning
4. Pre-crisis period
5. Crisis period
6. Post-crisis period
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
1. CRISIS SITUATION
• Boycott of products
• Poor quality and safety of
products
• Mining disaster
• Ecological disaster
• Falsification of accounting data
• The collapse of computer
networks
• Contamination of food,
medicines, water, air, ...
• Flight and train disaster
• Fraud and embezzlement
• Defamation and its dissemination
• Criticism from the media
• Redundancies
• Failure of human potential caused
by negligence
• The scandals associated with top
management
• Injury at workplace
• Strikes (Bossnapping as a
bargaining method - the detention
of managers employees)
• Closure of the factory
• Extortion
• Environmental pollution
• Earthquake
• ...
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS SITUATION
• The most severe and most common PR activity.
• A reputation is a delicate thing, which can take years to build up
and mere moments to sully.
• A crisis is unpredictable but not unexpected.
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS SITUATION
• Crisis is a moment in the history of the company, which
irreversibly changes its corporate culture and business
itself.
• The crisis is a sudden event or a long-term problem that can
damage the company's reputation, affect its value.
• Key factors of the crisis:
• The long-term existence of crisis germs /sudden formation.
• Immediate consequences - it limits normal operation of the
company or it paralyzes the company overall.
• Long-term consequences.
EFFECTIVE CRISIS COMMUNICATION = PREVENTION +
ACTION
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS SITUATION
• Industries with increased probability of a crisis situation:
• Pharmaceutical industry
• Transport
• Mining (mining) industry
• Chemical industry
• Food industry
• financial companies
• Health care
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
2. TYPES OF CRISIS
• The crisis of image
• Problems with products, especially with regard to their harmful
to consumers' health.
• Environmental damage.
• Public campaigns (protests by opponents, e.g. the producer of
genuine fur etc.).
• Old burdens (the consequences of previous business
activities)
• Human Factor (personal crises, deaths - employees´ suicides,
....)
• The crisis in connection with natural elements
• Floods, storms, fires, ...
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
TYPES OF CRISIS
• Spiteful attack
• Damage of corporate reputation
• The crisis caused by criminal acts (contamination, espionage)
• Information crisis (theft of know-how, information leakage)
• Cyberattacks
• Corporate crisis
• Physical (work injuries, death, ...)
• Economical (management crisis, problems with financing, the
destruction of jobs, ....)
• Personal (strikes, violence, suicide of key members of
management, ...)
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
3. CRISIS PLANNING
• Crisis planning is about putting into position those elements that
can effect speedy outcomes to the disaster sequence. When a
crisis strikes, it is the application of contingency based tactics by
all those concerned with the vent that will determine the strength
of the outcome. Crises tend to move through a series of distinct
phases.
• Pre-crisis (signal detection, prevention, preparation),
• Crisis event (recognition, containment),
• Post-crisis (evaluation, learning, follow up communication).
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
4. PRE-CRISIS PERIOD
• Information field  sufficient information (Where to find
them? How to evaluate them properly? How to use them in
effective way?)
• Rules of crisis communication
• Try to learn what crisis could arise
• Determine how to proceed in the event of a real crisis
• A simple analysis of the situation - the potential risks (Crisis
audit)
• Prepare a scenario of crisis communication
• Set up a crisis communications team
• Create a crisis manual
• Strengthen relations with media
• Training of of crisis situations
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS COMMUNICATION TEAM
• Connection and perfect interplay of competent professionals with
clear lines of responsibility is an essential prerequisite for
successful crisis management.
Scenario of
crisis
Boss of company
Spokesp
erson of
company
External
consultant
Corporate
experts in a
particular area
Lawyer of
company
Leader of team
EXTERNALCOMMUNICATION
Source: Chalupa, 2012, Efektivní krizová komunikace
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS COMMUNICATION TEAM
WHO? ADVANTAGES DISADVANTAGES
BOSS OF COMPANY
Powerful authority, the
validity and binding effect of
his or her words and
promises.
Lack of time.
SPOKESPERSON OF
COMPANY
Good knowledge of the
company, the daily
experience with the media,
personal contacts with
journalists.
Readiness and willingness to
align with the company's
unpopular decisions in times
of crisis.
LAWYER
Correctness in expression. Limited ability to induce
positive emotions. Lack of
experience with the media.
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
KEY ASSUMPTIONS OF SPOKESMAN IN TIMES OF
CRISIS
• Stress resistance.
• Communication with grace.
• Basics of polite behaviour and manners in public.
• To be a good psychologist.
• Ability of principles of successful dialogue (eye contact, ...)
• Indicate the importance of own opinion in the company.
• To speak clearly and concisely (no use of "no comment" or
professional terms).
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS COMMUNICATION TEAM
• A member of the crisis communications team should have:
• Replacement mobile phone with an Internet connection.
• Spare batteries for your mobile phone.
• Spare batteries for laptop/tablet.
• Spare clothes for the day, spokesman: spare suit - cotton
shirts, ties, blouses and costume for women.
• Small pillow and blanket in case of a short rest.
• Basic toiletries.
• Natural "doping" according to own libitum (grape sugar,
chocolate, coffee).
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS MANUAL
• Concise and clear summary of procedures, lists and contacts
which are important for the smooth management of the crisis. It is
provided to all members of the crisis communication team, as well
as members of corporate management in print and electronic
form.
• An important prerequisite for the functionality of the manual is to
provide regular updates.
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
5. CRISIS PERIOD
• Maintain ability to act
• Fast communication - from 24 to 72 hours!
• Speak with one voice. Communicate the true facts.
• Provide reassurance. Interest + (humanity + assurances +
Care) = Success!
• Inform all parties.
• Deal with conflict situations with grace.
• Defend the reputation of the company
• Agreement with full responsibility.
• Disagreement with responsibility.
• Pointing out the mitigating circumstances.
• Mitigation of outrage (compensation, guarantees providing, ...).
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
CRISIS PERIOD
• Communication with media (publicity)
• Press release
• First interview
• Press conference
• Monitoring of media
• Strengthen position in the Internet
• Crisis Website
• Communicating via social media
• Communication with employees
• Do not underestimate the influence of pressure groups
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
COMMUNICATION STRATEGY IN CRISIS PERIOD
• Strategies of closed door  company does not communicate.
• Strategies of half-open door  company communicates
partially.
• Open-door strategy  company tries to provide complete,
verified and correct information.
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
COMMUNICATION STRATEGY „4R“ IN CRISIS PERIOD
• Regret
• Responsibility
• Reform
• Restitution
EFFECTIVE MARKETING COMMUNICATION IN THE CRISIS PERIOD OF THE
COMPANY
6. POST-CRISIS PERIOD
• To persuade key interest groups, that the crisis is over.
• To evaluate the crisis (mainly the work of members of the crisis
communication team).
• To examine the circumstances when there was the change of
the crisis.
• To analyze the media outputs.
• To implement obtained information into the crisis strategy.
• To be prepared for repeated publicity.
• To improve the crisis manual and crisis communication team in
order of next crisis.