The blog entry in the url below indicates the extent to which major firms are losing control over their brands due to the viral nature of the Internet (Figure 3.4, The Free Flow of Information, p56). The blog also reflects, however, the paranoid attempts by some firms to retain as much control as possible:
“A major brand has decided that my blog branding infringes on their trademark and IP. They’ve also accused me of cybersquatting. They’ve ordered me to cease and desist with my domain and to transfer all domain rights to them.”
The actions of this firm (which remains unnamed in the blog, but is related to the blog’s title of ‘The Everyday Foodie’—Martha Stewart’s Everyday Food Magazine perhaps?) are ultimately detrimental. They have the effect of converting a loyal follower and active promoter of the brand and its products into a lifelong enemy:
“I’ve been a customer and advocate of this brand for years. Until I received the legal notice two weeks ago, I was a marketer’s dream: a loyal purchaser who regularly recommended the brand’s products and publications to my friends and family. I’m a content creator and active on social networks, both of which increase my personal reach and influence and gave me more opportunities to be their advocate. Now they have lost me as a customer and advocate forever, with all that that entails. What they may have gained in perceived brand protection they have lost in the profits and the lifetime value of a loyal customer.”
This example is particularly compelling, but similar incidents surface regularly in the media. A central argument of Strategic CSR is the importance for firms of embracing the needs and demands of their key stakeholders in an open and honest dialogue. Seen from this perspective, the Internet provides an opportunity for further competitive advantage. Firms that reject this approach and see the ever-expanding communication technology as a threat to business, however, will find it very difficult to succeed in the new global business environment.
Happy Thanksgiving!
David
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
The Everyday Foodie
Saying Good-bye to The Everyday Foodie
June 21, 2009
