Crisis Management: From Rumor to Real Emergency

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Crisis ManagementFrom Rumorto Real Emergency
MKT 452 Special Session John Stockmyer
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The Importance of Perceptions

• Perceptions are the collective result of
  everything a stakeholder sees, hears, reads, or
  experiences about a company and its brand.
• The source of a perception is the consumers
  mind, not the companys message.
• Perceptions are reality for the person who holds
  it.  

Perception is Truth
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Rumors...

• Can have a devastating effect on company image
  and on sales
• Any rumors going around???
• Here are some well-known rumors

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PGs Man in the Moon
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How to handle Rumors?

• Sounds like a communication issue. . .

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Visit Coke.com

• About Company / Myth and Rumors

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Problems at Intel...

• Remember the Pentium problem???

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Pentium Bug Background

• 1994 - Intel recently began rolling out hot new
  Pentium to replace 486
• Mathematician discovered rounding error
• Intel admitted to knowing about problem, but
  costly to fix, and unnecessary anyway
• Went to Fix on demonstrated need only
• Show Pentium Jokes

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Pentium Jokes

• Q How many Pentium designers does it take to
  screw in a light bulb?
• A 1.99999996, but thats close enough for
  non- technical people.
• Q Whats another name for the Intel Inside
  sticker they put on Pentiums?
• A The warning label.
• Q What do you get when you do your tax returns
  on a Pentium computer?
• A Audited.

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Pentium Bug Background

• Forced by IBM/Consumers to fix all chips
• Caused a lot of ill will with consumers
• Moral of the story If your customers think you
  have a problem, you have a problem!
• Perception is Reality!