Marketing to Downplay a Bankruptcy

The current national economic climate has forced a number of large corporations to file for bankruptcy including Chrysler, General Motors, Six Flags and Eddie Bauer. While it may make sense for these corporations to keep quiet during bankruptcy proceedings, the opposite is actually the reality. After filing for bankruptcy, companies need to actively and powerfully launch marketing campaigns.

The main reason that marketing is so important to these companies is to downplay the bankruptcy and make it seem like everything will be just fine. To the average consumer, “bankruptcy” is a very scary word and could lead to confusion and distrust quite easily.

Here are a few tips for how to market during a bankruptcy to keep consumer confidence as high as possible:

Everything is okay
The main theme of a marketing campaign during bankruptcy is to ensure customers that everything is okay and there is no reason to panic. Explaining the circumstances is frank terms is usually the way to go.

We’re still open for business
After reassuring customers, it’s important to repeatedly make it known that the company going through bankruptcy is still open for business. This is also a good time to advertise coupons or sales.

We’re reinventing ourselves
“Reinventing” is a golden word during bankruptcy proceedings. If customers believe that the company is simply trimming overhead and improving the business model, that could go a long ways toward keeping customers confident.

Blame the economy
With so many people being decimated by the current economy, blaming the economy for the problems is a good strategy. Customers will understand and oftentimes sympathize.

Can Six Flags Keeps Customers Confident During their Bankruptcy? (Image: Flickr)