Preparing the Marketing Manager for Crisis: The Use and Application of New Strategic Tools

Recent press reports detailing the success of new industrial enterprises are often misleading. In actuality, failure rates remain high and the vast majority of new ventures will not survive for five years. Advances the notion that, while failure is sometimes beyond the immediate control of company owners (trade and embargo policies barring entry of products,natural disasters such as fire or earthquake destroying company facilities), an impressive number of potential crises can be prevented. Further, mitigation steps such as crisis marketing planning can minimize the negative impact on cash flow and company image that often emerges from disaster. A firm that integrates this planning into its strategic plan (and concurrently informs potential investors that it has pondered and planned for worst‐case scenarios) is ultimately better prepared to cope with crisis and reassure stakeholders.