Weakening brand image and official distributors
Official distributors invest in their sales networks and in rights to exploit the products they distribute. Their goal is to maximize their network effectiveness to target the customers. When the customers can easily get a product (genuine, counterfeited or copied) via the Internet or any other sales network, the economic risk gets very important for the official distributor.
All this implies financial losses. The consumers who buy products via unauthorized networks would have done it via official networks. They do it to buy a safe product, not a counterfeited one. They are misled by the seller. For some industries like automobile it is often the case since it is difficult to differentiate original and fake pieces.
Counterfeiting products are equated with branded ones. Poor finishing techniques discredit the brand which is considered as a company selling poor quality goods. This company must assume the bad publicity because of counterfeiters who use it.
Accidents related to the counterfeited goods are also equated with the brand image. Laboratory analysis must be done to prove that the brand is not responsible for these accidents. The media often relates the facts by accusing the brand.
It means the detection of publications about the brands, products, leaders and commercial names.
Companies often compared Internet with a communication tool and a distribution network. It enables companies to be in contact with the customers and to increase their visibility. However, it may cause harm.
What is sure is that what is said or done on the Internet cannot be totally controlled. Its main characteristic is the global participation of people. Negative words affect the brand image.
Therefore, companies are and more aware of the fact that they can be victims. Bad publicity is to be avoided, but when companies are acquainted it is too late to react.
Fake profiles are sometimes created to depreciate a company. The comments on the Internet should be watching, considering business competition.
How are you perceived on the Internet?
Taking into account some bad comments could encourage you to be interested in other products or services. By knowing what is said about your company, you can increase your degree of control on the Internet.