The Necessity of Effective Reputation Management

In the wake of the recent FIFA corruption and bribery scandal, customers are threatening boycotts of FIFA’s major sponsors, leaving some of the world’s best known brands scrambling to address a potential world-wide public relations backlash.  While there is still some question as to whether or not this scandal, which is so unlike any we’ve seen before in terms of its global reach and scale, will fade away without any real consequences or have a major impact on FIFA’s sponsoring brands, it is interesting (from a marketing perspective) to examine how these brands have handled their crisis communications in this situation.

Crisis Communication, or reputation management, refers to a special area of marketing and customer relations that deals with the reputation of the individuals, organization, and the brand as a whole.  Brand identity is one of the most valuable assets of an organization, and the main purpose of Crisis Communication is to protect the brand identity and maintain the organization’s firm standing within the industry in the face of various factors that can tarnish its public image.  It is often beneficial to see this particular area of marketing strategy as existing in two modes: corrective and adaptive.  While the former involves reacting to emergency situations, correcting problems after they have occurred and controlling the fall out, the latter takes a more proactive view, attempting to anticipate and adapt to changing business trends and market needs.  Ideally, many problems can be addressed before they become serious or even eliminated altogether with the effective use of adaptive maintenance.  Staying informed about current developments and understanding the trends that affect your business can give you insights that will allow you to generate a proactive response to the challenges that lie ahead.  However, no one can possibly have perfect foreknowledge of all the changes that may occur, and so corrective maintenance is also a necessary part of any long term business strategy.

The essence of developing an effective reputation managment strategy lies in remembering that communication itself is the key to dealing with any crises effectively.  While there may be a natural tendency to “circle the wagons” and limit the information that reaches the public, this approach actually can do more harm than good and is unrealistic in today’s e-commerce world.  Instead of hiding during times of crisis, increase your social media presence and make an effort to interact directly with both clients and media.  Ignoring outsiders only increases anxiety, contributes to wild speculation, and generally exacerbates the situation.  Moreover, effective internal communication is, if anything, actually even more essential to overcoming a crisis. Information must flow across all departments in its desired form.  Employees must be aware of what is happening around them and individuals should have access to their superiors in order to discuss critical issues and seek their suggestions. Maintaining an open forum during critical situations not only gives employees a sense that their ideas and concerns are being heard, but also can give managers access to “outside the box” ideas that may have otherwise gone unnoticed.

Although no one can anticipate every possible crises that may come to pass, formulating an effective reputation management strategy can be an excellent way to make sure that your business can safely weather any storm.  For more insights on all facets of marketing strategy, contact McCauley Marketing Services today. Be sure to connect with us on Facebook, Twitter, and Google+.