PRSA 2013 Pre-Conference: Managing the Non-Market Environment & Social Media

Managing the Non-Market Environment & Social Media

Noah Krusell Chief Analytics & Innovation Officer

PRSA 2013 Pre-Conference

Example of a simple business ecosystem

Characteristics:•Interactions are voluntary•Controlled process of interaction

Market Environment

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Non-Market Environment


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


Non-Market Financial Effects

Company

Issue Call to Action ResultFinancial Impact

Monsanto

GMOsActivist / 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&JInfant

TylenolCaregivers Recall

Removed from shelves

$1B lost revenue,

switching, re-introduction costs

ToyotaBrake Recall

Consumer / Regulators Recall

Recalled cars

$>2B lost earnings,

decrease demand / price premium


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

What’s Changed?


social media increases•proliferation of issues•dissemination of messages•public awareness and activation•attention from government & public arenas

What’s Changed?ECOSYSTEM


social media increases•ability of traditional media to advocate•ability of traditional media to treat coverage

What’s Changed?MEDIA INFLUENCE


social media increases•constituents ability to organize and rally•politicians ability to hear and be heard


What’s Changed?POLITICS

social media increases•ability to disseminate agenda•ability to organize (costs / geographies)


What’s Changed?ACTIVISTS

Solution


Want to Learn More?

Schedule a free consultation.

Heather Bartel | [email protected]

www.evolve24.com

About evolve24

Who We Are

• 35+ employees- Data Scientists

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Mission: Become the most trusted strategic advisor to move companies beyond social media monitoring to social intelligence

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www.evolve24.com

An audience understanding company providing integrated traditional and social media intelligence solutions

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Every business is unique. We create customized solutions to advance your specific business objectives.

• Audience Segmentation Analysis• Emotion/Behavioral Drivers Study• Crisis Monitoring & Analysis• Emerging Issues & Trends Report

(Speed and Velocity)

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Social Research Reports

What We Do

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Ask us what we can do for you. We offer a wide

variety of reports and analyses.

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PRSA 2013 Pre-Conference: Managing the Non-Market Environment & Social Media

Economy & Finance

Transcript of PRSA 2013 Pre-Conference: Managing the Non-Market Environment & Social Media