It’s no coincidence that Jack Dorsey, CEO of Twitter, announced that his platform would ban political ads less than an hour before Facebook’s much-anticipated third-quarter earnings call. While this is a business decision, and Dorsey will forgo revenue as a result, his move had a broad-reaching marketing impact; especially given the timing.
Mark Zuckerberg doesn’t typically do well in the hot seat; however, he stood behind his policy, saying, “I don’t think it’s right for private companies to censor politicians and the news.”
I can only speculate, but it’s likely that Zuckerberg, his legal, marketing, PR, and investor relations teams held an eleventh-hour strategy session to prep and align on Facebook’s response ahead of the earnings call, and for the coming days.
Companies on the Defensive
It wasn’t the first time, nor will it be the last, that a competitor made a business decision that forced a company to either follow suit or defend its alternate position.
In early October, Charles Schwab made a surprising announcement that it would eliminate commission fees on online stock, ETF, and options trades. Hours later, TD Ameritrade announced it would also reduce fees to zero. E-Trade did the same the following day.
All is fair in love, war, and business. When a competitor makes a bold move, business leaders must make tough decisions that have major ramifications — financial, moral, ethical, and otherwise. In order to address the competition’s news, a strategic marketing response is required.
Marketing and Communications Readiness to Counter the Competition
Whether or not your company plans to follow a competitor’s lead or chart your own path, marketing and communications readiness will ensure you communicate effectively with customers, prospects, and the general public surrounding the matter.
Close Alignment With Leadership
A response to the competition’s news is more successful if marketing has a seat at the table with leaders as they make any related decision. The marketing team can be a sounding board on the reputational impact of the business decision and can help with the planning and strategy for the response to ensure the company’s position relative to the competition is clear.
Real-Time, Multichannel Response
Following Charles Schwab’s announcement, the companies who reduced their fees in step with Schwab needed to move quickly to retain their customers and ride the news wave. Again, alignment with leaders is crucial, because marketing teams can only move quickly with marketing efforts if they have access to stakeholders and decision-makers.
Digital channels allow for the quickest turnaround for marketing efforts and a variety of levers must be pulled simultaneously to have the greatest impact. This requires a collaborative approach across marketing, sales, client relationship management, and other teams.
Strong PR Foundation
Well ahead of these circumstances, it is important to have a solid PR foundation, including approved subject matter experts who have been vetted, prepped, and coached.
Additionally, PR teams should be continuously building media relationships before there’s even news to share. Then, when it is time to participate in a relevant dialogue, the reporter knows your company and will be more likely return calls or emails.
Reclaim the Competitive Advantage
There’s no way to anticipate every move your competitor will make. However, if you’re strategic and prepared, you can use your competitor’s news to your marketing advantage.