Marketing Matters

You mark my words. Sooner or later, Toyota will admit that the acceleration problem they are having with their cars is much more than a floor mat problem. Then over the following several months, we will hear about evidence that shows the company knew about “these other” problems for years.

And even if I’m wrong, the fact that I (and most American consumers) would probably bet that I’m right, is indicative of a crisis communications strategy that is about as bad as it gets. By breaking some of the most fundamental rules regarding crisis PR, Toyota has destroyed any sense of the trust that they’ve built up over the past couple of decades. And each day it just gets worse.

Here are some of the rules that Toyota apparently continues to ignore:

Rule 1. Be up front and honest.
Rule 2. Be quick to admit mistakes – it’s better that you reveal them yourself then have someone else do it.
Rule 3. Show sincere concern for those harmed and those that may be harmed in the future.
Rule 4. Lay out a viable strategy for setting things right.

The New York Times reported that there is evidence Toyota knew about some of the most recent problems back in 2007 or earlier. And now, instead of admitting their mistakes, it appears that the Japanese company is trying to minimize the extent of the problem – blaming it on floor mats..even when there is strong evidence to the contrary.

To reduce public concern, the company quickly put out ads telling Americans that Toyota made a mistake and is now refocused on quality control. Sorry guys. Too little, too late. You provide no specifics to what the problem was or how you are correcting it. You do not address the inordinant amount of time it took to reveal these problems or how you are addressing internal issues to prevent this from happening again.

And still the reports of runaway cars continue to make headlines.

Of course, the company’s current crisis communications plan is the result of executive decisions to reduce the impact on sales. In the meantime, the law suites and recalls will certainly add up to be one of the biggest and most expensive blunders in automotive history. Yet, the company continues to portray, what seems to be, indifference to its customers and greater concern for its own bottom line. Not good.

As far as the bad and the good…While not as ugly as Toyota, Tiger Woods didn’t do so well with his crisis communications either. He did finally hold a press conference and spoke honestly about what led up to his crisis. Unfortunately, it was another case of too little, too late. He did outline a strategy for fixing the problem (off to the sex clinic) and in time, his fans may actually forgive him and the endorsements may return.

As for the good, I’m reminded of a corporate crisis that came across my desk over a decade ago. Turned out that the largest personal printer manufacturer in the world was selling a printer that could kill you! That’s right. If you put your finger in the right place at the right time, you would receive a shock that was bigger than the one you’d get when you saw how much you’d be spending on printer ink cartridges.

As soon as the problem was discovered, a meeting was held to determine the proper course of action. While the implications for damage to immediate sales were not good, the right decisions were made:

1. An immediate recall of all effected printers
2. A halt in production until the design was corrected
3. A proactive communications strategy.

That’s right. Even though no one had yet died (or was even harmed) from the printer, it was the company’s own PR staff that first alerted the press (and subsequently, the public) to the problem. The potential danger was, if anything, exaggerated rather than minimized. A strong course of action was outlined…and in the end, the company received more press for its quick action than for the original problem.

The ugly, the bad, and the good.

admin Communications Industry, PR Tips & Thoughts, Uncategorized Advertising, communications, corporate communications, crisis communications, crisis PR, portland public relations, PR Tips & Thoughts, Public Relations

WE ALL KNOW that David Letterman can be a funny guy. We are now learning that he can be quit a savvy PR professional as well.

The talk show host’s handling of his recent “sex scandal” is truly one for the lesson books. We know that this kind of “news” can wreck careers. We are seeing that it doesn’t have to.

It has now been about a week since the news first hit the press and the story already seems to have shriveled up and all but blown away. How is this possible? A celebrity, a sex scandal and a blackmail! This is the kind of story that the press usually feeds upon for weeks if not months. It’s the kind of story that has ruined the careers of some of the most powerful (presidents, senators, CEOs) and well-loved (actors, musicians) public figures of our times. For Letterman however, it seems to have become little more than a fleeting comedic subject hardly worth a mention. How can this be?

BRENNER’S TOP THREE LIST OF LETTERMAN LESSONS

1. Be the first to tell the news. Letterman didn’t wait for information about his trysts to come out in the press. He was the first to break the news. In fact, he told his story on the same day that the warrant was issued for the alleged blackmailer. This not only allowed Letterman to take control of the message, but it kept him from appearing defensive (and hence, guilty).

How do so many politicians miss this? They certainly have the same high-quality PR council that I’m sure Letterman had. Do they simply – despite all the evidence to the contrary – think they will be the first to squelch this kind of news? Time and time again, we see the negative results of sitting on a story and letting others control the message. When will they learn?

The same goes for companies that have bad news to tell. Be it a sex scandal, a product recall, an impending financial concern or other bad news – it’s vitally important to act fast and, if at all possible, ensure that you (and not the press) are the ones breaking the story.

2. Be honest. Letterman doesn’t deny the accusations. He doesn’t even try to minimize the wrong-doing (can you say, “It wasn’t really sex”?) He is very clear that he had sex with employees.

3. Take control of the message. If you watch the replay of his “confession,” you can’t help but be impressed with the way he took control of the message. Consider the following:

- He chose the setting for telling his story. He could have called a press conference. He chose instead to reveal his story on his show, in front of his biggest supporters – his fans.

- He shifted the story from one about sex with employees to one about blackmail. In fact, it wasn’t until almost 8 minutes into his ten-minute explanation that he even mentioned the fact that it was all about illicit sex. In his telling, it was all about this creepy guy who terrorized him with blackmail.

- He did say early on that the “blackmailer” was going to write about all the “terrible stuff” that he (Letterman) had done throughout his career. In fact, he mentioned “terrible stuff “several times. By the time he got down to specifics regarding sex with employees, it didn’t seem so terrible after all.

- Most importantly, he did a great job of positioning himself as the victim, not the guilty. In his telling of the story, he was able to keep the focus on the “blackmailer” and the trauma that he (David Letterman) had to endure in dealing with this evil-doer. He talks about be terrified that someone may be hiding under his car, he’s riddled with “Lutheran Midwestern guilt,” he has to do things he hates doing (conferencing with his lawyer), he says that this whole thing was “quite scary” and that he was made to fear for himself and his family. He even ends by saying his motivation for sharing this story was simply to protect his friends and family.   

So now, a week later, the story seems to be all but dead. I have yet to see Dave’s picture on the cover of any of the grocery store tabloids or on my computer screen when I pull up Yahoo! News. Is this the end? That may depend upon additional revelations revealed as the case plays out. If the sex wasn’t consensual or if any of the women felt harassed, the story may have additional play – but for now, thanks to a smart communications strategy, Letterman has certainly scored a knock out in the first round.

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