When Bad PR Causes Falling Stock Prices

Business Insider took an interesting look at 10 PR catastrophes that really damaged companies’ stock prices. It’s a great thing to keep in mind when you’re handling a crisis.

Is PR dead? There’s no better way to tell than looking at the aftermath of a major PR fail.

When really bad news is made public, it not only affects people’s opinions, but it also affects the stock market.

Remember what happened when Steve Jobs denied he was ill, then took a leave of absence to have a liver transplant? Apple’s stock nose-dived 7 points that day.

Here are several other major public events, compared them to the company’s stock prices for that month.

See the 12 instances at BusinessInsider.com.

PR: Getting Out in Front Works Again (JetBlue Edition)

By now, you’ve heard the story about the JetBlue flight attendant who quit in an uproar, telling a customer — and many others — to (bleep) off. What’s more, he’s been anointed by some as a hero by angry employees nationwide. The whole incident was certainly unprofessional and not something the company is proud of. At any rate, after a day or so of public ridicule, Twitter wars with comedians, etc., JetBlue finally acknowledged the situation on its own blog and seemed to come off quite well:

Sometimes the weird news is about us…
It wouldn’t be fair for us to point out absurdities in other corners of the industry without acknowledging when it’s about us. Well, this week’s news certainly falls into that category. Perhaps you heard a little story about one of our flight attendants? While we can’t discuss the details of what is an ongoing investigation, plenty of others have already formed opinions on the matter. Like, the entire Internet. (The reason we’re not commenting is that we respect the privacy of the individual. People can speak on their own behalf; we won’t do it for them.)

While this episode may feed your inner Office Space, we just want to take this space to recognize our 2,300 fantastic, awesome and professional Inflight Crewmembers for delivering the JetBlue Experience you’ve come to expect of us.

Additionally, they were able to parlay the incident into a compliment for their existing employees.

So let this be a lesson that sometimes it’s best to address a situation upfront, rather than hope it goes away while losing your ability to control any part of the message.

Doing a Media Interview? Try These Tips

Speaking with the media can be tough, especially if you’re not used to doing it. Christina Khoury of PRbreakfastclub.com offers some quality advice for businesses (it’s actually for PR pros to pass on to clients) about how to get your message across effectively in only 5-10 minutes, so you come across a little more like George Clooney, and a little less like Rod Blagojevich or Animal from "The Muppets":

Prepare. Inform your client about the outlet, host, market, and if you’re lucky the questions that will be asked (don’t count on it).  Note: no matter how much you prepare, prepare for the unexpected and plan for possible damage control.

Draft no more than three talking points. If there are more than three, clients feel rushed to make sure every point is discussed and it makes the interview seem less conversational.   Work with the client so that he can discuss the points comfortably with improvisation instead of memorizing them.  This will help create a more genuine interview.  If needed, index cards are beneficial but should only have key words instead of phrases in case your client forgets something.  And if he does,  it’s not the end of the world.  Stay positive, give feedback, and move on to the next one.

This is not an advertisement. Be careful how many times your client mentions his product.  If the audience wanted to watch informericals they would turn on the TV in the middle of the night.  No one wants that during prime time.  My rule of thumb, especially for short interviews, is to mention the product twice.  Once in the beginning and once at the end as a call to action to communicate where or how to purchase/experience said product.

Smile. It’s easy to sound monotone on interviews especially if they are over the phone.  By smiling clients can change the entire tone of their voice and people are more inclined to listen to a voice that is inviting.

Relax, breathe, and have fun. I’ve had clients sing on the radio, tell embarrassing stories, and some hosts have even professed their love for some clients.  Just have fun.  No one wants to listen to anyone that takes themselves too seriously, especially during drive time.

Arizona & Its Hotel Industry Working to Enhance PR

Upon the announcement of its new immigration law a couple of months ago, Arizona incurred a firestorm from opponents, media and protestors that burned hotter than … Arizona in July. But now, the Grand Canyon State is working to rework its image via a new PR campaign partially funded by a hotel trade association. USA Today writes:

Arizona plans to spend $250,000 on a public relations campaign to counter concerns about its controversial, new immigration law and promote itself as "a safe and welcoming destination." The state’s hotel trade group will add another $30,000 to the effort, according to the Associated Press.

The PR campaign is one of the recommendations presented publicly yesterday by a tourism task force appointed by Gov. Jan Brewer to address the state’s tourism industry, the AP reports. The findings came as the ACLU on Wednesday issued "travel alerts" to Arizona visitors in advance of the Fourth of July weekend to inform travelers of their rights if stopped by police.

The task force was charged with finding ways to aid Arizona’s tourism industry as it grapples with fallout from the law that Brewer signed in April, the article says. The law is set to take affect on July 29 barring any legal action. The law has sparked boycotts and outright travel bans from cities large and small, school districts and other municipal bodies at a time when travel is gradually starting to rebound from a two-year downturn.

The state should hire a PR firm "to help manage the existing dialogue and clarify the facts" regarding the immigration law, the AP article says. That effort could include getting into editorials into U.S. newspapers and conducting interviews in key visitor markets.

Brewer two weeks ago approved the recommendations, which paves the way for state agencies and the Arizona Hotel and Lodging Association to carry them out, the story says. The story did not detail what role the Arizona hotel group will play besides making a financial donation.

The recommendations also direct Arizona to "change the tone of the dialogue to reflect the true implications and tangible effects that boycotts have on the lives and families on the most vulnerable tourism employees," the AP reports.

The law requires that police enforce another law to ask people about their immigration status if there is "reasonable suspicion" that the people are in the USA illegally, the story says.

Collaboration Could Enhance Your Messaging

Does your company use a PR agency? For that matter, is your company a PR agency? Glasscubes.com recently conducted a survey that showed 90% of the PR professionals questioned thought results would be better if the agency/client relationship was more collaborative. One would think many of their clients would feel the same way. So Glasscubes offers these helpful tips to improve your relationship, and hopefully improve your visibility in the process.

5 Tips to Improve Agency-Client Collaboration

Every day, Glasscubes helps small businesses improve working relationships by strengthening collaboration. The following tips are based on that first-hand experience, as well as feedback collected in the survey.

Stop thinking in terms of “agency” and “client.” Instead, be part of one team working side-by-side to meet goals. By tearing down the walls separating the agency from the client, you’ll build a more trusting, team-focused relationship.

Reduce reliance on email. Email is quick and easy, but it doesn’t lend itself to give-and-take, back-and-forth communication – one of the driving forces behind effective collaboration. For example, by encouraging conversations on a shared online workspace, agencies and clients can listen to suggestions from multiple people, discuss ideas and work together to develop a solution. Plus, reducing emails means less time wasted searching archives, and no more forgetting to CC someone.

Encourage collective brainstorming. Barriers develop when agencies think they’re supposed to have all the answers. Likewise, tension is created when clients don’t provide enough input, but still expect agencies to deliver the goods. Instead, brainstorm together and encourage feedback. Combine the collective resources of the agency with the client’s subject-matter expertise for better results. This brainstorming can happen in-person or online.

Build trust. Trust isn’t developed overnight. But, it’s critical to effective agency/client relationships. With trust comes confidence, an openness to new ideas and a sense of partnership.

Continue to evolve. Just because “that’s the way it’s always been done” doesn’t mean it’s the right. Nearly 90% of survey respondents said relationships are “somewhat collaborative,” which is okay, but not good enough. There’s a clear desire to increase collaboration as a means to generate better results. Be willing to shake up traditional agency/client communication.

Worst Winter Olympic PR Scandals of All-Time

Think you have PR problems? At least you don’t have corrupt judges and a drunken skier on your hands.

Business Insider recently took a look at the worst Winter Olympics PR disasters of all time. Lowlights include the Harding/Kerrigan debacle, Denver refusing to host the games after being awarded them in the 1970s, and a couple are unfortunately from the 2010 Olympics in Vancouver. A snippet:

NBC: The network that prevents you from watching the Olympics.

In the age of Twitter, 24/7 real-time online news coverage, and real-time everything, NBC still thinks it’s 1976, and that the best way to cover the Olympics is via tape delay.

Actually, that’s the worst way to cover the Olympics. For instance, by the time NBC got around to airing Bode Miller’s downhill run last night, everyone already knew that he came in third place.
 

For the record, despite my issues with NBC’s lack of live coverage, this has by far been the most enjoyable Olympiad for me. Discussing this with friends recently, we decided the Winter Olympics are so much fun because these are events we don’t see otherwise. While curling is enjoying unprecedented recognition, I’ve personally found a new love for downhill skiing, Snocross and even ice hockey. Most importantly, it’s been great to see Canada and its famously welcoming people garner some well-earned recognition for the nation’s gorgeous West Coast.

Advice for Tiger from a Communications Consultant

Communications consultant Fraser Seitel offered some useful advice for Tiger Woods regarding his current PR crisis. Whether you think Tiger’s dirty laundry should be aired or not, this advice could also be useful for any business that finds itself in a PR pinch:

So, my friend, as much as you value your privacy and as distasteful as the reality of this awfulness is, you really have no choice.

With apologies, here is the crisis management mantra to which you must abide:

 #1. Go Public
You can’t not. Those TV trucks outside your gates, and the Cro-Magnon creeps attempting to scale the wall around your community ain’t goin’ nowhere till you come out. I know you’re used to being hounded by paparazzi, but this is another dimension. You’ve got a “secret” they want. And they get paid only if they pry that secret loose. So forget about maintaining an “allow us our privacy” stocism. Nothing in the world of global icons is “private” — especially when there is the whiff of sex in the air. You’ve got to go public.

#2. Do It Yourself
When companies get in trouble, crisis managers typically advise CEOs to let spokespeople handle the explanation as long as possible. Once the crisis is escalated to the CEO level, you can’t throttle it back to a lesser light. On the other hand, some corporate crises — deaths, kidnappings, massive layoffs, etc. — must be handled by the top man or woman, right out of the box.

This case is of the latter variety. You can’t finesse this one through a spokesman. Only one person can suitably explain what happened and why. You.

#3. Do it Tuesday
The longer you let this linger, the greater the fervor among the reportorial bottom-feeders to bring you down. And trust me, they will.

You have a previously booked press conference scheduled Tuesday at the tournament you’re hosting in Thousand Oaks, CA. Use that opportunity to tell the tale and clear the air.

If you refuse to talk about the incident or, horror of horrors, cancel the press conference, you will learn first-hand the truth of the journalistic adage, “Hell hath no fury like a tabloid reporter scorned.” Continue reading

Luntz: Pacers Image Turnaround One of a Kind

Like him or not, Frank Luntz is known nationally by many in the political arena as a top pollster. One of his most recent polls, however, focuses instead on the basketball arena, and shows very encouraging results for the Indiana Pacers. Luntz recently spoke to Gerry Dick of Inside INdiana Business about the rebuilding of the team’s image, stating that 90% of fans polled believe the team has kept its promise to "clean up its act." He also offered that he’d never seen a turnaround of that magnitude in professional sports before.

Watch the video here.

PR Pros to Offer Services Pro Bono

It’s refreshing to be able to slow down (that’s me, not the Indianapolis area firms doing a good deed in a 24-hour creative marathon) and recognize something positive taking place. Read below. Kudos to the communications pros and congrats to the nonprofits that will be the beneficiaries.

Top creative and account management teams from four of the best communication companies in Indianapolis will develop new creative campaigns on behalf of four deserving nonprofits during the first annual 24 Hours of Pro Bono creative marathon.

Designed to elevate the profile of creative agencies in Indianapolis while showcasing the amazing causes of central Indiana nonprofit organizations, 24 Hours of Pro Bono will put four AAF – Indianapolis firms to the test by challenging them to cultivate a creative concept in 24 hours.

The event will begin on Wednesday, Oct. 21 with a luncheon at the Indianapolis Central Library, where four nonprofit organizations will be revealed and randomly paired with four AAF – Indianapolis member firms.  Following the luncheon, each firm will commit its time and talent for the next 24 hours to develop a creative concept on behalf of its selected nonprofit.  The firms will present their creative materials in the auditorium of the Central Library at 6 p.m. on Oct. 22. Participating member firms are Caldwell VanRiper, Hirons & Company, Publicis and Westlake Design.

“Many worthy nonprofit organizations desperately need professional communications assistance to compete for local dollars to fulfill their missions,” said Tom Hirons, president of AAF Indianapolis. “AAF creative firms will assist these underserved and budget-challenged nonprofit organizations to more effectively increase awareness and communication.”

The cost to attend the presentations and the cocktail reception is $10 for AAF members and $35 for nonmembers. Members of the news media are invited to watch the agencies in action on Wednesday and Thursday, and are welcome to attend the presentations free of charge.

Learn more here.

Wisconsin Tourism Foundation (WTF) Changes Branding Over Abbreviation, Takes Heat

Anyone even remotely associated with social media these days is familiar with the cute little abbreviations that dominate text messages, Twitter updates, and — unfortunately — now general correspondence. You know, LOL (laugh out loud); BRB (be right back); OMG (Oh my God); and of course, WTF? (What the … "frig?").

Naturally, the latter has become a bit of a sticking point for the Wisconsin Tourism Foundation (WTF), causing the organization to ultimately change its name to the Tourism Foundation of Wisconsin  (TFW) — even though it had been around for 30 years. Communications company Ragan.com took the TFW to task for caving into the confusion, rather than embracing it. From their PR Junkie blog, they offer:

Wisconsin, you blew it.

The Associated Press reports that your Wisconsin Tourism Federation — WTF — quietly rebranded in July, changing its name to the Tourism Federation of Wisconsin — TFW.

Get it? WTF to TFW.

So, what prompted this rebranding? After all, Wisconsin’s WTF was around well before teens, and later adults, started saying WTF to mean “what the f***.”

“Blogs started poking fun at it,” the Association Press reported.

Because blogs started poking fun at it? Really? One blog, it seems, made fun of it. That blog is called YourLogoMakesMeBarf.com. On July 1, the blog posted the Tourism Federation’s logo with this comment, “would really think someone would warn them about this kind of stuff.”

Ouch. Better call up the PR SWAT team for that one.

Other blogs and articles are claiming the people of Wisconsin cracked wise about the acronym endlessly, and the Tourism Federation of Wisconsin, a group of businesses in the state, finally got sick of it. Clearly, the blog YourLogoMakesMeBarf.com played a strong hand in the decision, given the timing.

It was a big mistake. This organization had a marketing goldmine. Wisconsin’s “WTF” was branded in 1979. So, WTF, optimize it! Next time someone types WTF into Google, there’s your site. Someone types WTF into a Facebook update or Gmail e-mail and an ad for Wisconsin appears.

What are your thoughts? Should the WTF have changed its name, or simply celebrated its unexpected entry into the world of new age jargon?