I didn’t ask Alexa who Scott Galloway was…

I didn’t ask Alexa who Scott Galloway was, but I did happen to Google him because our persistent professors at the University of Melbourne kept mentioning how he’s the ultimate marketing guru. With my last semester almost out of the way, I took the opportunity to use time spent on my commute to read Scott Galloway’s The Four.

Best. Decision. Ever.

In his book, not only does Scott give a closer look into how The Four giant companies operate, he also gives a fresh, candid outlook on how technology has redefined social, search, brand, and retail.

One of the many interesting elements in the book is how he describes the men behind The Four, their drive and what seemed like madness at the time – their sheer determination to change how billions of people would use technology to make their everyday lives more convenient. The opinions I have about the four – Amazon, Facebook, Google, and Apple – have significantly become stronger after I read this book – further stroking my curiosity to see the next steps they take to stay at the top of their game.

I got to learn heaps about Amazon since it isn’t as big in India as it is in the US. Funnily enough, around the same time I was reading the book, Walmart invested $16 billion in Flipkart, an Indian e-commerce unicorn, which is, coincidentally, the worth of Amazon India. The author extensively elaborates on Amazon’s DNA and its relationship with its shareholders. While the success of this giant is attributed to our primitive need to gather things plus the convenience to shop from just about anywhere that e-commerce provides, Scott makes it abundantly clear how pure e-commerce is dangerous – not to mention how being at the mercy of Google is a terrible, terrible idea. This, I think, is a red flag for any business that primarily relies on this other giant – Google – to generate leads.

I am very proud of the fact that I do not fall for this third giant that Scott talks about in his book. I am not an Apple person. However, I was intrigued by how the author explained the magnitude of Apple’s success owing to its iconic founder, artisanship, vertical integration, global reach, and its premium price. I also agree with Scott’s expectation for Apple to be the (bigger) giant and invest in (you’ll have to read the book for this one) vs develop another cool phone screen.

Surprisingly, Scott wrote about Facebook’s unwillingness to take any responsibility for the amount of misinformation on this ‘social network’ platform way before its public hearing. In Scott’s words, Facebook truly has committed involuntary manslaughter of the truth on an unprecedented scale. Only time will tell how The Four either righteously rule the digital world or fall by the hands of their competitors.

From using his T-algorithm to predict the next giant in line, to learning what it takes to stand out of the crowd – by the end of his book, I couldn’t help but wish I was sitting in one of his marketing classes at the New York University Stern School of Business. Scott’s book is an extremely entertaining approach to the digital world – perfect for every marketing and communications student and professional.

Breaking the menstruation taboo – Why India needed a ‘marketing gimmick’

Flashback to seventh grade.
We were told Whisper was coming to school and there was going to be a talk about menstrual health. I personally thought this was a great opportunity to learn more and ask questions from health experts about the monthly cycle. Boys were obviously assigned to “two sports” periods while the girls went to this secret seminar.

This is about fifteen years ago, at a well-known school in Noida.

From a hush-hush topic to the PadMan movement where celebrities, regardless of their gender, are publicly posting a picture of them with a pad in their hand – this is an imperative movement giving a chance to Indians to be more mature about women’s health.

When I first saw the trailer for PadMan, I felt a mix of emotions. Growing up in a country where when I used to go to the chemist to buy sanitary pads, I’m handed over to – either wrapped in a brown paper bag or an otherwise-never-seen black plastic bag. I wondered why. Over years of confusion and guessing, I realized girls were meant to hide these sanitary pads from everyone. This included friends, family and let’s not forget – anyone else standing around the chemist at the time of purchase.

akshay kumar
Picture courtesy: Instagram.com/akshaykumar

PadMan, is not only a movie openly discussing pads – it is being done so by a huge artist. Unfortunately, in a country with 74% literacy, where we claim to be forward thinking in many ways – Bollywood influences the masses more than it should.

Coming to the main reason for this article – I’ve noticed that people have raised questions about the movie’s marketing strategy. I am out of words – Thankfully not literally. The outrage is over ‘wasting pads’. If a person is ‘holding a pad’ and nominating another person to ‘hold it’ – how it is wasting pads? First off, they are perfectly returnable to whomever they belong to and in perfect condition for any woman to use. Even if people decide this is not a good enough reason – isn’t the point of advertising all about displaying the actual product? The fact that huge influencers have taken up this issue is a big deal.

Can you imagine the magnitude of its reach across India? And I mean through all existing platforms – movie, print media, online media, and new media.

Now comes the point where some people are raising the fact that the Instagram ‪#PadManChallenge‬ does not in fact cater to the rural areas. Sadly enough, we have enough reasons to have this challenge on Instagram. Exhibit A:

One of many comments on Akshay Kumar’s Instagram post holding a pad

Many such comments can be found here.



To remove the taboo of just talking about pads, to me, holding out a pad, and posting a picture of it for the world to see – was absolutely necessary. What should be an issue is the tax on sanitary napkins, which deters women from buying pads, further causing reproductive diseases. Marketing gimmick or not, India needed Padman. I am glad we’ve taken the first step to start an open discussion about women’s health.

 

The rapid evolution of digital advertising

With over 16 million internet users in 1995, Yahoo, one of the first famous web services providers, was the first to introduce search ads. A couple of years later, Google developed AdWords and the digital advertising boom became inevitable. Attempting to be non-intrusive and at the same time efficient, by mid-2000s social media channels were outsmarting each other by coming up with innovative ways to integrate ad content. But it was only a matter of time before digital ads became less productive and more annoying.

The evolution of digital advertising is evident on Facebook where it was introduced in the form of small display ads, and eventually evolved into very specific ads targeting users according to their interests and demographics. Over the past couple of decades, like its state on Facebook, digital advertising has been dwindling between either fewer but more tailored ads or more ads in general. Unfortunately, rarely do ads reach the right person at the right time. Because digital ads are increasingly looking to ‘get noticed’, they often come across as intrusive. In fact, Modal ads, ads that reorganize content, and autoplaying video ads are among the most disliked. It’s no wonder that ads are now deemed creepymanipulative, and misleading. Additionally, as a whole, web usability has improved over these past several years, but ad blocking has grown by 41% in just 2015.

It’s getting harder to capture the attention of audiences and engage with them using different digital advertising approaches. Several companies have already started investing in innovative advertising techniques and content-led marketing strategies. While native advertising is one of many strategies that companies are open to exploring, the future of digital advertising might just be AR and VR integrated advertising. Digital advertising is evolving faster than most companies can keep up and the industry is moving towards adopting strategies that aren’t invasive – rather immersive.

advertising

Digital advertising isn’t restricted to the traditional two-dimensional display anymore. In the recent few years, companies have started focusing on building their brand story by providing customers with unique experiences through Augmented Reality (AR).

By integrating a virtual element to their digital advertising tactics, brand giants are not only captivating the attention of a wide range of consumers – from kids and millennials to baby boomers – but also allowing its audience to view a richer, more detailed advertisement, making it possible for customers to virtually experience products – something that was never possible before.

Bringing in experiential interactions with its customers, AR is changing the way customers engage with brands.

While we’re on the topic of immersive storytelling medium, Virtual Reality (VR) deserves more than a mention. The reason VR is a more engaging, immersive approach than AR is because it makes users feel like they’re really somewhere else. Since digital advertising is all about grabbing its target audiences’ attention, virtual reality is a winner. On the other hand, advertisers are still experimenting with this new technology. Even though a recent study revealed that 74% consumers find VR ads less intrusive than other digital ad types, it might only be a matter of time that VR turns into another unwanted digital advertising technique. Another reason for delay among advertisers to adopt VR into their digital advertising strategies is the significant investment required to create a VR campaign.

It’s true that most companies are still spending hundreds of thousands of dollars in content creation and conventional display ads – reluctant to experiment with AR and VR. There is still a lot to learn from several AR and VR integrated advertising campaigns produced by brand giants and advertisers are catching up. Very soon, digital advertising will be synonymous with immersive technology that opens up a branded world for its customers to explore and manipulate.

Best Practices for Crisis Management on Social Media

In the current fast-paced media environment, organizations need to adapt and learn how to timely respond to media hype. Many communities, corporations and nations choose silence in times of crisis. Theorists have attempted to analyse the undertone of using silence or the absence of communication with the media.

Sellnow, Ulmer, and Snider (1998) argue that organizations refrain from any communication because of the possibility that it may be used against them in court. Regardless, Coombs (2012) argues that silence conveys ‘uncertainty’ and allows others to ‘take control’, further suggesting that the organization is ‘not in control’. In fact, Richards (1998) mentions that silence indicates the organization may be guilty or might have something to hide. The Volkswagen case on emissions standards is an apt example where the California Air Resources Board and the U.S. Environmental Protection Agency exposed the company for illegally installing software in its cars to dodge standards for reducing pollution (Pandelaere, et al., Companies Fare Worse When the Press Exposes Their Problems Before They Do). It was found that the CEO, Michael Horn, was tight-lipped about this ordeal even though he was notified a year earlier. Additionally, Volkswagen kept their silence even when EPA gave them a chance to come clean. As a result, the company faced negative publicity as this ‘information vacuum’ gave media a reason to suspect the organization and ‘build a case’ against it.

To fill the information vacuum, it is of critical essence for the organisation to be proactive with its narrative.

Heath (2004) elaborates on story guidelines: state an account of all elements (like characters, location, audience) in the story; elaborate on the organization’s control over the situation; double check the story in terms of logic and evidence; test whether the story is, in fact, ‘verifiable’. If an organization can follow these guidelines and timely fill the information vacuum with its narrative, it stands a good chance to manage the crisis successfully.

United Airlines PR disaster

Giving an account of the recent United Airlines PR disaster, the response by the company CEO, Oscar Munoz was inefficient to say the least. It was an unprecedented unfortunate event where a passenger was forcedly removed from a boarded flight. This was filmed and viewed worldwide, costing the company not only long-term reputational damage but also a loss of millions in market share (Winston, Pepsi, United, and the Speed of Corporate Shame). As a response to this fiasco, Munoz’s first statement wasn’t aligned with the seriousness of the contents in the video. The elements in his story weren’t rightfully mentioned as he referred to forcibly removing a passenger as simply ‘reaccommodating customers’ (Image 1). To curb the damage caused by the crisis, it was vital for Munoz to fill the information vacuum with an earnest response. Not only was his response one day late (Sakzewski, United Airlines: What can we learn from company’s ‘breathtakingly bad’ crisis management?), he was completely out of touch with the narrative and associated emotions of his stakeholders. While the video itself was ‘verifiable’ content, Munoz’s subsequent attempts at apologizing were evidently inadequate to pacify the crisis. Eventually, his fourth statement via television mentioned that he felt ‘ashamed’, acknowledged that ‘no one should even be mistreated this way’ and apologized to the passenger (Anon., United Airlines will stop using police to remove passengers from full flights, CEO Oscar Munoz says). Munoz’s final apology was cohesive and aligned to Heath’s guidelines for a proactive narrative.

crisis management
Image 1: United CEO’s response to United Express Flight 3411

Pepsi’s Kendell Jenner Ad

In contrast, when crisis hit Pepsi for its advertisement where Kendell Jenner is seen skipping a photo shoot to join a protest, the organization was quick to fill the information vacuum. After it received huge backlash for incorporating imagery from a Black Lives Matter protest and portraying protests as a fun event rather than a serious gathering, the advertisement was taken down immediately (Taylor, Pepsi’s new ad shows Kendall Jenner joining a protest and giving a cop a soda — and people are furious). Responding to the negative reactions, the company released a statement where they stated they wanted to convey the message of ‘unity, peace and understanding. The statement (Image 2) went on to acknowledge their mistake by stating: ‘clearly we missed the mark and we apologise. We did not intend to make light of any serious issue’. Pepsi followed through Heath’s guidelines as it had a proactive narrative, quick apology and took ownership for their tone-deaf campaign.

crisis management
Image 2: Pepsi’s statement after the Kendell Jenner ad backlash

To approach crisis management on social media, Cheng’s article examines crisis communication strategies and describes an Interactive Crisis Communication (ICC) model which focuses on the importance of measuring stakeholders at a time of crisis and strongly suggests building a long-time positive dialogue between the organization and stakeholders through a reliable third party. The ICC model mentions numerous strategies across different stages of crisis out of which ‘stealing thunder’ has noticeably proved successful in mitigating crisis. Claeys, Cauberghe and Pandelaere (2016) reveal findings from their research on ‘stealing thunder’ which involves disclosing the crisis before the media does.

Studies show that when an organization discloses its crisis, not only is it identified as a more credible firm, the problems disclosed are also perceived as less severe.

Additionally, another study confirms that people pay less attention to self-disclosing news from an organizational crisis due to its nature of being perceived as old news (Pandelaere, et al., Companies Fare Worse When the Press Exposes Their Problems Before They Do).

While it might be tempting for organizations to hide a crisis from their most important stakeholders – the public, dealing with the situation upfront, self-disclosing crisis details, ultimately stealing thunder can prove to be a sensible option because it evades negative attention and reputational damage to the company.

Another successful practice for crisis management is choosing the right channel to target the right stakeholders.

Gilpin (2010) mentions that:

social media has reduced the time for an organization to react to a crisis, thus, when responding to a crisis, organizations must choose the right platform to convey their message

For example, Domino’s 2009 YouTube crisis involved responding to a fraudulent video published on the same platform. First, to respond to the crisis, Domino’s choice of platform (YouTube) was apt as this approach entailed a direct relationship with its targeted audience; second, the company could communicate through visually-rich content in place of a traditional press release waiting to get picked up by news reporters. Managing crisis through the right channel proved to be fast, engaging and effective for Dominos.

Bowen and Heath (2007) elaborate on the following five perspectives that reinforce an ethical narrative by organizations:

  1. the company should embed ‘moral obligation to society’;
  2. focus on its relationship with its stakeholders;
  3. delicately handle any form of harm it could cause;
  4. lawfully execute ethical actions;
  5. should be truthful as an organization

After relevant research and a deeper look into the case studies mentioned, it is clear that crisis communication is more important than ever before much due to the increasing need for ‘immediacy’ in communication with stakeholders.

Best practices for crisis management on social media include identifying evolving crisis and timely filling the information vacuum with a logical narrative. It is essential for organizations to understand the implications of keeping silent during crisis and steal thunder by self-disclosing crisis details through the right platform.

In conclusion, organizations worldwide are functioning in a space where stakeholders can point out and magnify any errors made. There is a dire need for organizations of every size to comprehend the importance to regularly monitor the media in order to pacify any evolving negative PR story – called crisis creep (Regester and Larkin, 1997). Scholars agree that being upfront about the situation in times of crisis and investing in transparent conversations with stakeholders ultimately helps limit fake stories and negative publicity surrounding the company (Carmichael, Putting the Right Information on Twitter in a Crisis). Since crisis management in the digital age is still an evolving territory, we are bound to learn more about dealing with information vacuum in the near future.

 

This research essay was first put together as a part of my coursework for master of marketing communications at the University of Melbourne.