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Impact of Negative Publicity

Spirit Airlines experienced negative publicity regarding their poor customer service. They have a history of customer complaints related to baggage handling and changes to policies like baggage fees. Their reputation and business could be harmed if customer expectations are not met. When trying to address the negative publicity, Spirit launched a misleading campaign blaming government taxes and fees for their prices. However, airlines are allowed to break out pricing details and Spirit knew this but tried to manipulate customers. Bad publicity can damage a company's brand equity and reputation as being responsible or trustworthy, especially if issues of safety or dishonesty are involved. It can be difficult for businesses to overcome negative publicity and regain customer trust.

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Sherry Persad-Mehra
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279 views3 pages

Impact of Negative Publicity

Spirit Airlines experienced negative publicity regarding their poor customer service. They have a history of customer complaints related to baggage handling and changes to policies like baggage fees. Their reputation and business could be harmed if customer expectations are not met. When trying to address the negative publicity, Spirit launched a misleading campaign blaming government taxes and fees for their prices. However, airlines are allowed to break out pricing details and Spirit knew this but tried to manipulate customers. Bad publicity can damage a company's brand equity and reputation as being responsible or trustworthy, especially if issues of safety or dishonesty are involved. It can be difficult for businesses to overcome negative publicity and regain customer trust.

Uploaded by

Sherry Persad-Mehra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MKT 506 Integrated Marketing: Week 8 Discussion 1 Many companies have experienced the impact of negative publicity over

r the past few years as a result of product recalls, marketing blunders, etc. Give some example of some instances where companies experienced negative publicity and how they handled it. Evaluate their means of dealing with negative publicity. Many times corporate crises often result in negative publicity, threatening the image of the company. Spirit Airlines had some negative publicity recently. This negative publicity was regarding their customer service which they deemed to have a material adverse effect on business. In the past they have experienced a relatively high number of customer complaints related to, among other things, their customer service, reservations and ticketing systems and baggage handling. In particular, they generally experience a higher volume of complaints when they make changes to the unbundling policies, such as charging for baggage. This irritates customers and they complain. Thier reputation and business could be materially adversely affected if we fail to meet customers expectations with respect to customer service or if they are perceived by our customers to provide poor customer service. They did a horrible job when they tried to handly it. Spirit launched a Congress-facing grassroots campaign based on a shameful lie as stated on its website: Spirit must now HIDE the government's taxes and fees in your fares. The truth is that airlines must prominently display a total price, which includes the base airfare and mandatory fees and taxes. However, airlines are allowed to break out these cost items on their websites and in print advertising in as much detail as they care to. Spirit knew this but chose to endeavor to manipulate its customers. Guess what? Disrespected customers voiced their overwhelming disgust with this ugly misrepresentation in the Comment sections of major media outlets across the web. Earning and maintaining a good reputation is challenging for new and established businesses. When bad publicity emerges, businesses could be portrayed as irresponsible, dishonest or appear to be only looking out for their best interests. Although it is possible to make a good name for your business on a local or

national scale, doing so can be an uphill battle, especially in the face of bad publicity. Brand equity can suffer long-term damage as a result of bad publicity. This is especially evident for companies that must recall their products because of safety or health hazards. In such cases, even if only a portion of a product's supply is recalled, buyers are likely to avoid the brand altogether for a period

Reference: Belch, G. E., & Belch, M. A. (2012). Advertising and Promotion: An Integrated Marketing Communications Perspective. New York, New York: McGrawHill/Irwin.

In addition, think of a couple of examples of sales promotion that you have seen lately. How/why were these effective? (Assuming that they were, perhaps they were not). Discuss the various sales promotions examples provided by other students. List some of your top choices that you consider effective with a full explanation regarding why these are the most effective.

According to Belch and Belch, 2012 a sales promotion is an action that gives an extra enticement or value for a specific product to induce purchases. I reviewed numerous sites and even looked through my e-mails as I receive multiple store promotional e-mails. I saw the promotion for Old Navy, gap and Macys. These in my opinion were very effective as I saw their promotional messages displayed (Macys, 2012). Promotions get customers out of a holding pattern by giving them an incentive to take action before a limited-time offer expires. In a struggling economy, it is very difficult to lure a consumer and sales and promotional ads are typically extremely important. I found that above all, Macys one day sale promotions are very good and offered properly targeted promotion that would definitively prompt customers to take action by offering one of these incentives: price savings, including discounts, coupons or added value offers (Macys, 2012).

The color scheme used was a bright luring red and would catch anyones attention. Promotions can spur purchases by established customers, reel in new customers, draw customers from other vendors. Reference Macy's Launches National Advertising, Marketing Campaign; Brand Re-Launch Ads, Promotions and Events Will Feature ''Dancing in the Streets'' BusinessWire. Retrieved August 22, 2012, from http://www.businesswire.com/news/home/20060906005134/en/MacysLaunches-National-Advertising-Marketing-Campaign-Brand .

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