PRSA 2013 Pre-Conference: Managing the Non-Market Environment & Social Media
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The document discusses the challenges public relations professionals face in managing non-market environments influenced by social media, emphasizing the financial repercussions of reputation damage. It highlights how social media shifts power dynamics, enabling collective action and increasing risks to firm reputation. The document calls for new management approaches and competencies to address these evolving realities.
PRSA 2013 Pre-Conference: Managing the Non-Market Environment & Social Media
- 1. PRSA 2013 Pre-Conference Managing the Non-Market Environment & Social Media Noah Krusell Chief Analytics & Innovation Officer
- 2. Market Environment Example of a simple business ecosystem Characteristics: •Interactions are voluntary •Controlled process of interaction 2 evolve24 2013 All Rights Reserved
- 3. Non-Market Environment 3 evolve24 2013 All Rights Reserved
- 4. Challenge for Public Relations Pros Managing the situations resulting from firm strategy is not easy. •Reputation damage •Loss of trust •Decreased license to operate •Loss of customers, suppliers •Erosion of competitive advantage •Severe financial ramifications •Value destruction 4 evolve24 2013 All Rights Reserved
- 5. Non-Market Financial Effects Company Issue Call to Action Result Financial Impact Monsanto GMOs Activist / Public Resistance Inability to fund Celebrex Spin-off / Celebrex Revenues (> $5B) BP Safety Concerns (Deepwater Horizon) Regulators Fine / Limit Licenses RESTORE Act $4B – 15B fines and increase license fees J&J Infant Tylenol Caregivers Recall Removed from shelves $1B lost revenue, switching, reintroduction costs Brake Recall Consumer / Regulators Recall Toyota 5 $>2B lost earnings, Recalled cars decrease demand / price premium evolve24 2013 All Rights Reserved
- 6. What’s Changed? Social media has created a power shift. •Organizing instrument for collective action •Offsets financing asymmetry between corporation and public •Given control and voice to interests Financial implications for business •Increased risk of damage to firm reputation •Need for new management approaches •Need for new core competencies 6 evolve24 2013 All Rights Reserved
- 7. What’s Changed? ECOSYSTEM social media increases •proliferation of issues •dissemination of messages •public awareness and activation •attention from government & public arenas 7 evolve24 2013 All Rights Reserved
- 8. What’s Changed? MEDIA INFLUENCE social media increases •ability of traditional media to advocate •ability of traditional media to treat coverage 8 evolve24 2013 All Rights Reserved
- 9. What’s Changed? POLITICS social media increases •constituents ability to organize and rally •politicians ability to hear and be heard 9 evolve24 2013 All Rights Reserved
- 10. What’s Changed? ACTIVISTS social media increases •ability to disseminate agenda •ability to organize (costs / geographies) 10 evolve24 2013 All Rights Reserved
- 11. Solution 11 evolve24 2013 All Rights Reserved
- 12. Want to Learn More? Schedule a free consultation. Heather Bartel | heather.bartel@evolve24.com www.evolve24.com
- 13. About evolve24 www.evolve24.com Mission: Become the most trusted strategic advisor to move companies beyond social media monitoring to social intelligence Who We Are An audience understanding company providing integrated traditional and social media intelligence solutions • 35+ employees • Trusted strategic advisors - Data Scientists • Committed to quality service - Research Analysts • - Client Services Continuously evolving • Innovation Lab – dedicated to next-generation research methods • Fun to work with - Business Analysts - Industry Experts - IT Leaders evolve24 2013 All Rights Reserved 13
- 14. What We Do Every business is unique. We create customized solutions to advance your specific business objectives. Strategic Consulting Comprehensive Social Research Customized Reporting Advanced Metrics Listening Platform Social Research Reports • • • • Audience Segmentation Analysis Emotion/Behavioral Drivers Study Crisis Monitoring & Analysis Emerging Issues & Trends Report (Speed and Velocity) • Ask us what we can do for you. We offer a wide variety of reports and analyses. Influencer Analysis evolve24 2013 All Rights Reserved 14
- 15. Trusted Advisor to Executive Teams “The depth of insights still has people around here buzzing. Where next?” – Social Media Manager, Purina “Thank you for the immediate support. We don’t get that quality of service from just anyone.” – Corporate Communications, BMW “The perfect chart for a presentation I’m doing. Thanks for the new capability!” – Director of Social Media, Cargill “This is excellent work. Let’s expand. – Communications Director, GE 15 evolve24 2013 All Rights Reserved