prsa 2013 pre-conference: managing the non-market environment & social media
DESCRIPTION
This presentation from Noah Krusell, Chief Analytics & Innovation Officer, evolve24, shows staggering financial repercussions that can result from unplanned events, including a chart that illustrates the billions of dollars lost by various companies due in part to activists via social media.TRANSCRIPT
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
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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
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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
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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?
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social media increases•proliferation of issues•dissemination of messages•public awareness and activation•attention from government & public arenas
What’s Changed?ECOSYSTEM
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social media increases•ability of traditional media to advocate•ability of traditional media to treat coverage
What’s Changed?MEDIA INFLUENCE
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social media increases•constituents ability to organize and rally•politicians ability to hear and be heard
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What’s Changed?POLITICS
social media increases•ability to disseminate agenda•ability to organize (costs / geographies)
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What’s Changed?ACTIVISTS
Solution
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Want to Learn More?
Schedule a free consultation.
Heather Bartel | [email protected]
www.evolve24.com
About evolve24
Who We Are
• 35+ employees- Data Scientists
- Research Analysts
- Client Services
- Business Analysts
- Industry Experts
- IT Leaders
Mission: Become the most trusted strategic advisor to move companies beyond social media monitoring to social intelligence
• Trusted strategic advisors
• Committed to quality service
• Continuously evolving
• Innovation Lab – dedicated to next-generation research methods
• Fun to work with
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)
• Influencer Analysis
Social Research Reports
What We Do
Strategic Consulting
Comprehensive Social Research
Customized Reporting
Advanced Metrics
Listening Platform
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Ask us what we can do for you. We offer a wide
variety of reports and analyses.
Trusted Advisor to Executive Teams
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“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