Marketing Management, 16th Edition

Managing a Brand Crisis

Marketing managers must assume a brand crisis will someday arise. Chick-fil-A, BP, Domino’s, and Toyota have all experienced damaging—and even potentially crippling—brand crises. Bank of America, JPMorgan, AIG, and other financial services firms have been rocked by scandals that significantly eroded investor trust. Repercussions include lost sales, reduced effectiveness of marketing activities, increased sensitivity to rivals’ marketing activities, and reduced impact of the firm’s marketing activities on competing brands. To protect the brand, key executives and sometimes even company founders might have to step down.71

In general, the stronger the brand and corporate image—especially for credibility and trustworthiness—the ...