Let’s talk Risk Of Marketing campaigns today. Just like any other endeavour. Marketing risk is all about the losses and failures of marketing. And the potential pitfalls in the path of the marketing funnel. A part from the communication barriers. This topic also includes risks which are related to product development, pricing, promotion, branding, customer experience and sales. There are nuances to this communication funnel. Which can have catastrophic consequences if missed. But are easy to prevent with knowledge and awareness. In this guide you will find the Top Risks Of Marketing Campaigns.
As the name suggests. This is a type of marketing risk management. Under this topic. A brand which has been built and cultivated over time. It is at a constant risk of losing its brand value. This risk of losing brand value or risk in marketing arises due to several factors. Such as badly planned rebranding initiatives, competitive action against the brand, failures in marketing campaigns, association of negative connotations to the brand.
Under this type of marketing risk management. We try to counter failure associated with demand of the service of the product. In every product or service being sold.The imperative is to have demand for said product and services. Failing this one. The idea of the business remains moot. This risk in marketing may occur due to shifts in customer needs. And preferences or an innovation that will make a product obsolete.
This risk in marketing pertains to developing and launching a new product. The Risk Of Marketing Campaigns states that when there are completely new products. Then there is a high rate of failure at launch. This product development risk also includes the project risk and innovation risk. Before the launch of any product or services. It is imperative to analyse the need for product in the market. The competition and the target group. Also want to know the top online advertising risks?
This is a broad class of risk in marketing. It includes anything and everything that could potentially go wrong with the business processes. In this form of marketing risk management. We need to look at all processes from inception to launch. If one collapses, the others follow suit. Example- a delay in the manufacturing process. That will lead to a delay in the launch. Which will lead to a delay in the marketing campaign.
This Risk Of Marketing Campaign is focused on diversifying products to various customers or regions. The idea is to cater to different customer databases. Brands which depend heavily on only one customer group. They are putting themselves at a high risk of failure. Example: A firm that is generating 80% revenue from 5 customers. And it is at risk of losing business. In case any of these decides to go to the competition or go bust.
This marketing risk management revolves around negative brand events such as poor customer service. Which will damage your reputation. This reputation risk can be seen as the gap. Between how you actually want to be viewed as a brand. And how you behave as a firm. Look at the Digital Marketing success KPIs to track in 2020.