Definition of crisis management
A crisis management is the way that a person or business handles an emergency. In a family, this could be a member having to suddenly go to the hospital because of an accident. In a business, a crisis can be anything from a defective product recall or an economic change that causes a drop in sales.
How crisis management relates to business
Within the marketing industry, having the ability to understand and react promptly when crisis arises is crucial for maintaining the businesses market share, trust, and reputation. Not managing a crisis properly can have the potential to damage carefully developed equity, and spoil consumers’ quality perception (Chen, Ganesan, & Liu, 2009).
Personal experience with crisis management
As an online marketer, I run into crisis management issues oftentimes on a weekly basis. Each week I monitor my clients websites ranking through analyzing Yahoo, Bing, and Google search engines for algorithm changes. It’s normal for search engines to change their algorithm and I do advise my clients that their website rank may change drastically if such a change occurs that may affect their website. Once this happens, a site that previously ranked on the first page could drop out of the search engine completed. As this occurs, It usually causes a loss in site traffic and sales. The solution to this is for me to research and analyze the issue, check whether it’s a search engine issue or a website issue and then correct or explain to the client that recovery is impossible.
Summary of About the Crisis Marketing and The Crisis of Marketing
This article focuses on the global economic-financial marketing crisis. According to the article, marketing may be just the solution for many companies to get out of the crisis, but what is sadder is that a lot of them do not realize it (Cornelia & Mihaela, 2011). The article tackles the subject of why marketing is needed within a failing economy and how to successfully implement new strategies to help increase and sustain profit and productivity.
Avoiding negative impacts of a crisis
Research has indicated that a proactive strategy may have positive consequences on consumer perception if the crisis is responded to with a constant, active, and firm response (Chen, Ganesan, & Liu, 2009). The business being affected should respond quickly to the crisis and should focus their attention on building and strengthening consumer trust. During a crisis, marketing strategies should be analyzed and focus on resonating emotionally with the consumer through a human, friendly language (Cornelia & Mihaela, 2011). Without proactively managing the crisis, the risk of negative impact rises.
Cornelia, M., & Mihaela, B. (2011). ABOUT THE CRISIS MARKETING AND THE CRISIS OF MARKETING. Journal Of Academic Research In Economics, 3(3), 311-316.
Chen, Y, Ganesan, S., & Liu, Y. (2009). Does a firm’s product-recall strategy affect its financial value? An examination of strategic alternatives during product-harm crises. Journal of Marketing, 73(6), 214–226.
Dr. Elijah Clark (September 11, 2023). Business Crisis Management [Web log post]. Retrieved from https://elijahclark.com/business-crisis-management/