It’s sometimes said that all publicity is good publicity. This may be true if you’re a rock star with a reputation as a wild man who smashes US hotel rooms, guitars and photographing paparazzi (Music blogger and rock fan Russell Illsley has more details on this sort of thing). But try telling it to Gerald Ratner!

If you don’t know who Gerald Ratner is – then let his case be a lesson in business and marketing. Ratner ran a chain of jewellers by the same name which, although at the cheaper end of the market, were very popular with the general British public. But in 1991, Ratner was to make a speech which would cost him dear.

At the Institute of Directors on April 23^rd that year, Ratner said: “We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, ‘How can you sell this for such a low price?’ I say, “because it’s total crap.”

He made matters worse by adding that some of his company’s earrings were “cheaper than an M&S prawn sandwich but probably wouldn’t last as long.”

The speech resulted in an absolute blaze of negative publicity and the customers stayed away … in droves! The value of the Ratner group fell quickly by £500 million and the company only just managed to survive; not a tip Russell Illsley recruitment would recommend!

Gerald Ratner resigned the following year in November 1992. His speech remains one of the best examples in corporate history of showing contempt to, customers and trying to conceal inferior quality by branding alone.

The long and short of it is that “no”, all publicity is not good publicity. But it may not be of your own making.

At least Gerald Ratner made a foolish gaff that he thought was in a private speech that wouldn’t be reported elsewhere. But in these days of social media and the web, a completely unprovoked attack can have unfair negative consequences.