Amy Newman 8/16/11 Amy Newman 8/16/11

Secret's Anti-Bullying Messages Are a Hit

Procter & Gamble's Secret deodorant is encouraging an end to "girl-to-girl meanness" with its "Mean Stinks" campaign. The brand created a Facebook page that has accrued more than 230,000 "likes" and has partnered with Amber Riley (Mercedes on the TV show Glee) to create this video:

The anti-bullying campaign seems to resonate with people and correlates with increased sales for Secret.

Discussion Starters:

To what do you attribute the success of this campaign? In other words, why do you think this was successful?
Compare this campaign to Old Spice's social media blitz. What parallels do you see, and where do you think Secret fell short? (This Old Spice video garnered almost 35 million views.)

Amy Newman 8/11/11 Amy Newman 8/11/11

Strike at Verizon: A Look at the Data

Verizon is asking for concessions from the Communications Workers of America (CWA), and so far, management isn't getting any. The company claims that poor performance in its landline division makes costs unsustainable, but the unionized employees don't agree. To change the cost structure, Verizon wants to implement a pension freeze, reduce the number of sick days, and raise employee contributions to health care insurance.

Verizon CEO Lowell McAdam sent a letter (download) to all employees explaining the company's position.

In its statement, CWA says that Verizon's initial list of concessions hasn't budged since June 22, when union bargaining started. 45,000 employees are now on strike and cite the following "Verizon Financials" to support their case:

2011 annualized revenues are $108 billion and annualized net profits are $6 billion.
Verizon Wireless just paid its parent company and Vodaphone a $10 billion dividend.
Verizon's top five executives received compensation of $258 million over the past four years.

According to a New York Times article, management and the union disagree about benefits payouts to employees:

Union officials dispute the company's estimate that each employee receives $50,000 worth of benefits each year. In that number, the company includes $14,700 for medical and dental insurance, $10,900 for retiree health care and life insurance, $10,800 for pension and $7,500 for time off.

Union officials say total benefits average $25,000 a year. Mr. Kohl, the union official, disputed the $10,800 yearly figure for pensions, noting that Verizon's annual report said the company's 2010 contributions to the union's defined benefit plans "were not significant." Verizon officials said the $10,800 was an average annual amount.

Mr. Kohl also said the $10,900 retiree health care figure was greatly exaggerated, asserting that many retirees had worked years to pay for that care so the cost should not be attributed to current employees.

Mr. Kohl also quarreled with Verizon saying the value of time off - vacation, sick days and personal days - was $7,500. He dismissed that as double-counting because that number was already counted in wages.

Discussion Starters:

Looking at the argument over employee benefits, whose version of the data do you accept?
How convincing do you find the union's list of "Verizon Financials"? Do these numbers influence your thinking about whether the union should make concessions?
The CWA refers to Verizon's annual report to defend its position that pensions should not be frozen. How do you interpret the note "were not significant" in the report? Is this a convincing argument?
In CEO Lowell's letter to employees, what is his strongest argument? What is his weakest?
What ethical issues do you see in this dispute? Do you side more with management or the employees in this case? Why?

Amy Newman 8/1/11 Amy Newman 8/1/11

Bloody Bandage Tests Pizza Hut's Response

In a classic case of apparent lack of company response, a customer went public with a distasteful story about Pizza Hut. The Wieczerza family ordered a pie from a NJ Pizza Hut and got a mouthful of bandage and gauze with droplets of blood. According to Mr. Wieczerza, after several attempts to have the company pay for a blood test, he decided to go public. Although the local store manager was apologetic, the couple said they tried to contact Pizza Hut's corporate offices more than 20 times and received no response. The company did, however, reply to a News 10 request with this generic statement:

"The safety of our customers is our top priority. We take these matters very seriously and are conducting a thorough investigation of the alleged incident. We apologize for the inconvenience this has caused our valued customer."

One of customer's frustrations is the company's response that the dough from the customer's pizza didn't match a dough that Pizza Hut uses. As the customer said, "We didn't show anybody from Pizza Hut the pizza or the bandage and they basically called us liars. . . .I finally said enough is enough."

Discussion Starters:

How do you assess Pizza Hut's response to the situation? What might be a more appropriate response?
How can Pizza Hut best balance an apology with accepting blame? What if the story is a hoax?

Assignment Ideas:

Write an apology letter to the Wieczerzas about the situation.
Write a public statement from Pizza Hut's spokesperson about the incident.

Amy Newman 7/28/11 Amy Newman 7/28/11

"Netflix Relief Fund" Video Parody

"Netflix has raised their prices. This is literally the worst thing that has ever happened to White people."

Jason Alexander stars in "Netflix Relief Fund," a video poking fun at customers' reactions to Netflix's recent price increase. (See story.) Comparing Netflix to Hitler, Alexander says that "tears are falling all over MacBook Pros and Pier One throw pillows all across this country today."

Netflix Relief Fund with Jason Alexander from Jason Alexander

Discussion Starters:

How do you think this video came about? Who would have a stake in creating a parody like this?
If you were Netflix's VP of corporate communication, what, if anything, would you do in response to this video? Before you answer, consider the heated customer reaction to the price increases over the past two weeks.

Amy Newman 7/14/11 Amy Newman 7/14/11

"Dear Netflix" Is Trending Because of a $6 Price Hike

Poor Netflix has been called a "manipulative greaseball pig" and worse. "Dear Netflix" is a popular topic on Twitter because of a substantial price hike -- from $10 to $16 for one DVD per month and unlimited streaming. Netflix has been overwhelmed with complaints, and at one point, could not handle the call volume (listen to the outgoing message). Apparently, Netflix is trying to kill its expensive DVD business.

In response to Netflix's plan change announcement, more than 11,000 customers within two days have posted comments like this one, which received 922 "Likes."

Discussion Starters:

What is your reaction to the news? Is a 60% price increase reasonable in this case?
Could Netflix have handled the announcement differently? What, if anything, could the company have done to make the news more palatable?
How could Netflix handle the commentary at this point? If you were Reed Hastings, Jr., the company's CEO, what would you do to try to manage the situation?

Amy Newman 7/9/11 Amy Newman 7/9/11

When Twitter Becomes Triage

On the heels of Business Insider's "Most Hated Companies" list, I am increasingly annoyed at companies that can't seem to fix core problems. Rather, they put their customer service staff on the front line to appease people through Twitter and other channels.

A look at DirectTV's recent tweets, for example, reveals a company in distress: "DM us," "Have you called," "I'm sorry," "We need to escalate." Too many apologies for one day of work. Social media will do just so much to resolve systemic company issues, as this customer says:

Discussion Starters:

How do you assess DirectTV's approach? Compare DirectTV's tweets to similar companies'.
What is your best experience with a company response to a complaint? When have you complained to a company and had good results?

Amy Newman 7/5/11 Amy Newman 7/5/11

Most Hated Companies

Business Insider has posted a list of the 19 most hated companies, based on the American Customer Satisfaction Index. Large banks, airlines, and power and telecom companies seem to be most hated according to thousands of customer satisfaction surveys. Weighing in at number 6, US Airways received 61/100 points from customers.

Discussion Starters:

Does this list surprise you? Why or why not? Does the list reflect your own experience with these companies?
According to one analyst at the American Consumer Satisfaction Index, large banks, airlines, and communication firms represent "not terribly competitive industries, as the switching barriers for most of them are quite high... In other industries, like the food or clothing sector, the competition is huge. They bend over backwards to make customers happy, because they have to." How does this rationale explain the customer service failures? Does it excuse them?

Amy Newman 6/28/11 Amy Newman 6/28/11

Santa Makes a Summer Appearance in Pepsi Commercial

Pepsi has launched a new commercial featuring Santa Clause at a summer party. In a direct hit to Coke, which Pepsi now trails in sales (including Diet Coke), the ad shows Santa rejecting bottles of Coca-Cola. Critics say that Pepsi had lost focus on its flagship product; does this commercial signal a new direction?

Discussion Starters:

Had you associated Santa Clause with Coke? Does your knowledge or lack of knowledge change your perception of the commercial?
How is Pepsi using logos, pathos, and ethos in this commercial to persuade viewers?

Amy Newman 6/21/11 Amy Newman 6/21/11

Nike "Get High" T-Shirts Anger Boston Mayor

Mayor of Boston Thomas Menino doesn't like Nike's new T-shirts. He believes that messages such as "Get High" and "Dope" promote drug use. In a letter to the general manager of Niketown Boston, Menino urges the company to remove the T-shirts.

Nike has responded to my tweet about the situation:

Discussion Starters:

What is your opinion of Nike's new T-shirts: dangerous or just clever marketing?
Analyze the mayor's letter. What principles of persuasion does he use? Do you consider this an effective letter? Why or why not?
How do you think Nike should respond to the mayor's letter? What are the consequences of the company removing -- or keeping -- the T-shirts?
How do you assess Nike's tweets to BizCom in the News?

Amy Newman 5/30/11 Amy Newman 5/30/11

ABA Responds to Critics of High Calorie Sports Drinks

A new study found negative effects of high calorie sports drinks on children. Study authors say that children don't need the calories, caffeine, and other stimulants. This shouldn't come as a big surprise but has warranted this response from the American Beverage Association.

This isn't the first time that a study has put the American Beverage Association on the defense. A study on diet soda was highly criticized by the ABA on Good Morning America:

Source: Putting Health Before Headlines from American Beverage Association on Vimeo.

Discussion Starters:

Considering the recent study about high calorie sports drinks, in what ways does the ABA's response meet criteria for persuasive communication? In what ways was their response effective and ineffective?
Looking at the video above, how do you assess the ABA's approach about the diet soda controversy? Do you buy their argument and criticism of the study?

Assignment Idea:

On the ABA's website, you'll find several articles defending beverage makers and explaining new initiatives that support health, for example, their "Clear on Calories" section. What parts of the ABA's messages do you find most convincing? Least?

Amy Newman 2/9/11 Amy Newman 2/9/11

Nokia CEO to Staff: We Are "Standing on a 'Burning Platform'"

The Story

In a message to employees, Nokia CEO Stephen Elop compares the company's situation to that of a man on an oil platform in the North Sea. The man, like Nokia, needs to take the plunge into icy water in order to survive. Elop may be preparing employees for major changes expected to be announced on Friday. The speech (which became an intranet post) presents a grim picture of Nokia's position in the smartphone market: "We fell behind, we missed big trends, and we lost time." While the speech is fairly negative, Elop also encourages employees: "But, I believe that together, we can face the challenges ahead of us. Together, we can choose to define our future."

Discussion Starters

Read Elop's message to employees. If you were a Nokia employee, how do you think you would react to this?
What parts of Elop's message most inspired you? Did any parts depress you or cause you to doubt the company's future?

Assignment Ideas

Analyze Elop's speech for persuasive techniques. How does Elop use principles discussed in Chapter 7? Write a memo to your instructor to illustrate your analysis.
Try to write another version of Elop's speech. What analogy could you use that might work as well or better?

Amy Newman 1/29/11 Amy Newman 1/29/11

Where's the Beef, Taco Bell?

The Story

Taco Bell is under fire for misrepresenting its taco meat. A class action lawsuit claims that the company is falsely advertising their beef, which does not meet USDA standards and contains too many non-meat ingredients in their "meat mixture": "water, wheat oats, soy lecithin, maltodrextrin, anti-dusting agent and modified corn starch."

In response, the company says that their meat is FDA compliant and 88% beef, rather than the 35% that the suit claims.

Discussion Starter

In his video message, how does Greg Creed use logical arguments, emotional appeals, and credibility described in Chapter 7?

Assignment Ideas

Read the company's written statement in response to the lawsuit. In small groups, discuss what you think is most and least effective about this message.
Write a memo to Greg Creed assessing Taco Bell's response to the lawsuit. Consider all company messages as well as the timing of each. Include your advice for handling bad news in the future.

Amy Newman 10/31/10 Amy Newman 10/31/10

Bob Dudley, New BP CEO: Good Speech or "Worst Person"?

The Story

Bob Dudley, British Petroleum's new CEO (the company's first American CEO), addressed business leaders in London in an attempt to rebuild his company's image. This was Dudley's first public speech since taking the role following the oil spill in the Gulf of Mexico.

Discussion Starters

What persuasion strategies does Bob Dudley use in his speech?
What do you think are the most successful parts of this speech? Which are the most convincing? Which are the least convincing?

Assignment Ideas

Identify examples of logos, pathos, and ethos in Bob Dudley's speech. Which strategy does he use most?
Bob Dudley earned a spot on Keith Olbermann's "Worst Person in the World" list (fast forward to 1:30). On his political commentary program, Olbermann criticized Dudley particularly for the last paragraph in his speech, where he noted the intense "political and media attention" generated by the oil spill. Read the "Conclusion" of Dudley's speech, and draw your own conclusion. Is Olbermann's criticism justified? Does Dudley have a point? Imagine that BP has a blog for public comments. Write your assessment of Dudley's comments. Be sure to justify your perspective.

Amy Newman 8/28/10 Amy Newman 8/28/10

Egg Recall Scares Some, Brings Opportunities to Others

The Story

Millions of eggs have been recalled since a salmonella outbreak sickened over 1,000 people. The egg industry is on the defensive, but some local farmers have seen increased interest in their eggs. Both groups can use communication to their advantage.

NYT Article: In Serious Company Crisis, "P.R. May Only 'Get People to Hate Them Less.'"

The Story

The New York Times reported quite the story about the recent P.R. failings of BP, Toyota, and Goldman Sachs, citing both missteps and what sounds like hopelessness. Some crises, the article concludes, may be beyond repair through communication. This paints a dim picture of corporations' attempts to recapture trust and rebuild a brand.

Discussion Starters

Do you agree with the conclusions drawn in the article? Why or why not?
If these companies-BP, Toyota, and Goldman-hadn't made mistakes in their communication, would public perception be different?
Thinking as a customer or client of each business, what, if anything could each company have done differently to win you over?
What principles of persuasion (from Chapter 7) did each company use? Which could it have used more or less?

Assignment Ideas

As a group, watch viewers' perceptions of CEO Akio Toyoda, as he discusses Toyota's issues. Why do you think the viewers gave him mixed reviews, with "skepticism" their most common reaction? At what points did viewers' ratings decrease and increase? What do you think caused these changes?
After reading the NY Times article, choose one of the three companies and do your own research about how it handled the crisis. Write a report to the CEO with your analysis and recommendations for communicating during a crisis in the future.
Find a speech or commercial from one of these companies about its crisis. You'll find several on MediaCurves.com, on YouTube, and on each company's website. Analyze the video in terms of persuasion techniques discussed in Chapter 7. Write a memo summarizing your analysis.

Amy Newman 6/30/10 Amy Newman 6/30/10

BP Cleans Up (Its Image)

The Story

After the oil spill disaster in the Gulf of Mexico, British Petroleum tried to repair its reputation, partly with a TV commercial. In this video, you'll see how viewers responded to the message.

Watch the full video at the source: http://mediacurves.com/Politics/BP%20Commercial/.

Discussion Starters

What principles of persuasive communication (discussed in Chapter 12 ) does BP use in this message?
In your opinion, is this an effective message? Why or why not?
Why do you think the viewers reacted positively overall?
At what points in the video do you see a significant change in viewer opinion? Why do you think people change their perception at these points?

Assignment Ideas

Write a memo to BP's VP, Advertising, with your analysis of the commercial, based on persuasive communication principles. What works in the commercial? What doesn't?
Draft a script for a new commercial. How would you communicate BP's message about the oil spill and their commitment going forward?
Research other PR missteps by BP during this crisis situation. As a communication consultant, write a memo to Tony Hayward with your advice: following the spill, what could he and the rest of the organization have done differently to maintain the company's reputation?