Stop the Presses

A reality of the Information Age is that industries not previously thought of as media targets must also be prepared to deal with communications crises of all shapes and sizes.

In a recent issue of the National Parking Association’s PARKING Magazine, Levick Senior Vice President Gene Grabowski prescribed the basics of developing and implementing a crisis communication program that could one day spare the owners and operators of parking facilities across the country from reputation demolition. (more…)

We saw it with the failure of Bear Stearns back in March – and last week with the implosion of IndyMac and the near-collapse of Wachovia.

In a down economy, rumor and speculation can carry the weight of fact. Throw in Information Age technologies that provide investors and account holders with instant access to Wall Street gossip, and what you’ve got isn’t recipe for a run on a bank, but rather an all-out sprint.

Today, financial services providers must confront a reality of the near-recession business environment: Negative stories published in the mainstream media or the blogosphere can set off a chain reaction that must be responded to quickly and credibly in order to prevent the knee-jerk marketplace reactions that can take down a giant. (more…)

While the U.S. Food and Drug Administration has declared tomatoes safe to eat again, the work of rebuilding the industry’s brand is not yet over.

So far, the salmonella-related scare has cost the produce industry an estimated $100 million, sickened more than 1,200 people in 42 states, and left millions feeling a new wariness about food safety. Worse yet, an Associated Press-Ipsos poll finds that nearly half of consumers have changed their eating and buying habits in the past six months becuase they’re afraid they could get sick by eating contaminated food.

Although the cause of the outbreak remains unknown, now is the time for the produce industry to begin post-crisis marketing in earnest.

Why? Because we know from experience that once a crisis reaches its peak, there exists a teachable moment during which consumers - their interest, for better or worse, piqued by the barrage of news about an issue - are eager to learn about a company’s product. (more…)

As newspapers struggle to remain relevant and profitable in the midst of the new media revolution, their reforms are driving veteran reporters and editors to another line of work.

Last year, when real estate mogul Sam Zell stepped in to buy the debt-ridden Tribune Company newspaper empire, few thought it would lead to the departure of industry pinnacles like The Los Angeles Times’ David Hiller and The Chicago Tribune’s Ann Marie Lipinski.

But that is precisely what happened on Monday – and as a result, stakeholders in an industry already reeling from steep declines in readership and revenue now have yet another reason to be dreading what the future likely holds in store. (more…)

The al-Hurra television network – created by the U.S. government to improve the United States’ standing in the Middle East – has encountered a number of public relations snafus in recent months.

First, there was the revelation that U.S. officials were being paid to appear on al-Hurra, often speaking out on issues that they were ill-equipped to address or on topics of little relevance to the network’s Middle Eastern audience.

The network’s coverage of conferences denying the Holocaust and speeches from Hamas leaders also drew negative attention.

And in another high-profile gaffe, an al-Hurra broadcaster declared to the network’s predominantly Muslim viewers that “Jesus is risen today” on Easter morning. (more…)

Last week’s reports that flawed practices at major Wall Street ratings firms played a significant role in the mortgage meltdown represent a serious branding crisis for firms whose business models and reputations are built on a foundation of trust and objectivity.

The SEC’s findings – chief among them are revelations that agencies put profits ahead of reliable ratings by failing to respond to drastic workload increases with like increases in staffing and training – call into question the credibility that is the heart of these companies.

As such, the time has come for ratings agencies to make a sacrifice – and given the alternatives, their profits are the right place to start. (more…)

As Chinese state-owned funds step up their global investment initiatives, they may very well face a xenophobic backlash in the U.S. and elsewhere. Americans are already apprehensive about Chinese ownership of so much national debt – and the idea of increased Chinese ownership of American assets could compound that anxiety if the proper inroads are not established.

While protectionist messages will likely figure prominently in the public relations strategy employed by opponents of Chinese investment, such tactics will only scratch the surface if the impending battles for control of American companies turn as ugly as the recent takeover of Anheuser-Busch by Belgian brewer InBev. (more…)

Imagine you’re an award-winning author of three bestselling novels. You sit down with your publicist to discuss the media strategy for marketing your latest book and ask, “So, where’s my first interview? The cable news networks?”

Your publicist responds, “Nope… we don’t need them.”

With a puzzled look on your face you say, “OK… well, who’s going to do the first review? The Times, the Post?”

“Nah,” says the publicist. “Newspapers are overrated.”

As you take a closer look at the diplomas on the wall to ensure they’re not counterfeit, you finally ask, “Well, what then? The Daily Show? Rush Limbaugh? Reading Rainbow?”

“None of them,” responds the publicist. “And I guarantee this will be your fourth bestseller.”

Sounds far-fetched, right? But, after last week’s revelation that Vincent Bugliosi’s latest book entitled “The Prosecution of George W. Bush For Murder” has landed on the New York Times bestseller list after being largely ignored by the mainstream media, a conversation like that doesn’t seem quite so unreasonable.

Why? Because as Newsweek Editor Jon Meacham put it in an International Herald Tribune interview, “If it’s selling well, it’s another sign that the traditional channels of commerce have been blown up. If a dedicated part of the Internet community wants to move something, it doesn’t need benediction from the mainstream media.”

Whatever the reason that the mainstream press decided not to touch this book, the lesson here is clear: The paradigm isn’t shifting; it has shifted. And as such, forward-thinking communicators are using new media and social networking to circumvent the traditional gatekeepers and let their voices be heard like never before.

In 2005, Clear Channel Communications Inc. – the leading owner of U.S. radio stations – figuratively locked its doors when executives heard journalist Alec Foege knocking.

The firm discovered that Foege was drafting a book entitled “The Monster that Ate Mass Media” and wanted nothing to do with it. At best, the company’s statements would be bent to reflect the author’s biases. At worst, any misstep made during the interview would be exaggerated for maximum effect.

But knowing that a “no-comment” is tantamount to saying “I’m guilty” in the age of instant impressions, Clear Channel came up with an immediate, innovative and effective pro-active response. The company hired the highly regarded dean of the industry, Reed Bunzel – the former editor of the trade magazine Radio Inc – to write its own book.  Soon, “Clear Vision: The Story of Clear Channel Communications” had beaten Foege to the punch – and more importantly, to the shelves. (more…)

While InBev’s proposed takeover of Anheuser-Busch has already provided for a great deal of commentary in this space, it seems the fight is only just beginning.

With this week’s announcement that A-B is now suing InBev over Cuban business connections that could potentially lead to violations of the Trading with the Enemy Act if the deal goes through, the battle for Budweiser – and a number of other highly-visible beer brands – has intensified dramatically.

And, more important to the communications junkies like us that are following the story’s every turn, this saga continues to demonstrate how corporations in crisis are increasingly molding business and legal strategy to make the biggest impact on public perception. (more…)