Few business ventures require as much strategizing as marketing. It not only requires a huge financial investment, but marketing can also significantly alter how people perceive your brand. That’s why marketing executives owe it to their teams to prioritize risk mitigation.
Risk analysis is the first step to avoiding problems and maximizing brand potential. Doing so can offer clarity and pave the road to successful marketing campaigns that benefit all parties. Follow along as we explore the importance of risk awareness in marketing and see how it creates results.
The Importance of Risk-Averse Marketing
Risk has always been a part of marketing. After all, CEOs and business owners spend money to push their brands and make an impact on the public. There’s always the risk that your marketing campaign won’t work, which makes it hard to recoup the budget.
However, times have changed, and company owners must worry about many more risks. People hold businesses accountable more than ever and expect excellence. You must also consider that businesses and marketing firms face many external risks that have nothing to do with them.
This includes industry changes, the economy, and cyber threats. All it takes is one public relations disaster or hacking incident to change the way people perceive a brand. Risk-averse marketing doesn’t have to be difficult if you follow several important steps, such as:
1. Competitor Analysis
You don’t need a Bachelor of Science in Business to know that competitor analysis is essential in marketing. It can tell you a lot about how the public responds to your competitor’s marketing campaigns. However, you can also learn about which risks are worth taking and even which risks have popped up since your last campaign.
It’s important to pay close attention to how your competitors’ marketing campaigns have paid off. You can learn as much from their failures as you can from their successes. That includes their marketing strategies, markets, and the types of advertisements they run.
Numbers don’t lie, so pay attention to everything from airtime and ad length to demographics. However, another brand’s successful advertisement doesn’t necessarily mean it will pay off for your brand.
2. Cultural Analysis
The cultural climate constantly changes, and that’s important to consider in marketing. Many people understandably hold companies more accountable than ever regarding public behavior and perception. Look at some of the classic commercials from the ‘90s and early aughts.
Some of the behaviors, language, and depictions they included were considered acceptable at the time. Now, people view many of those advertisements as offensive and inappropriate. Being perceived as problematic or tone-deaf can not only waste your advertising efforts but also ruin your reputation.
Pay attention to where the culture is and where it’s headed. Running a risky commercial may not land the brand in hot water yet, but it could cause issues in a few years. Avoid controversial topics, depictions, actors, artists, and brand ambassadors.
3. Respect Privacy
Today, privacy is a huge topic when it comes to marketing. Many people get upset when they receive targeted ads or simply feel like a company has used their data. This is understandable as it can feel like an invasion of privacy, especially if you aren’t aware of it.
Besides reputational damage, using customer data unethically can lead to fines. You must comply with the Privacy Act of 1974 as well as state-mandated laws and regulations. That said, you can still give people the option to let you use their data for research and marketing purposes.
However, you must prioritize clarity and make sure everyone is on the same page and consenting. You must continually check and update your data collection process and system. Otherwise, you can easily slip up, fall behind new regulations, and get in trouble.
4. Prioritize Reputation
Reputation management is a huge part of marketing. Today, it doesn’t take much to ruin your reputation, whether it be because of marketing tactics or people within the company. Vetting your staff and brand ambassadors is more important than ever because of this.
You must make sure that everyone on the team represents the brand’s values. That’s especially true if they have a public presence as an ambassador, CEO, or high-level position. It’s also important to create and enforce guidelines regarding appropriate behavior and conduct.
All it takes is one bad apple to ruin the bunch, which is the brand’s reputation. No amount of marketing dollars and ad campaigns can repair viral damage. People trust brands more easily when they feel the brands demonstrate good values and authenticity.
5. Protect Your Data and Systems
Cybersecurity has never been such a big, important topic. There are over 2,000 cyberattacks per day, on average, and they affect individuals as much as businesses. Cybercriminals threaten your company data, as well as the data you’ve collected from customers.
You may face lawsuits if someone hacks you and leaks your customers’ data. This can cause a huge financial loss and damage your reputation in ways that are hard to bounce back from. As a company, you cannot spare any expense when it comes to cybersecurity.
It’s worth investing in ironclad cybersecurity software and multi-layered protection systems. Doing so can help prevent tragic reputation hits, embarrassment, and financial losses. You must also create a response plan early on and hire an outside cybersecurity firm in the event of a cyberattack.
6. Plan for Everything
Not only should you plan far ahead in marketing, but you should also plan for everything. You must create a plan for each possible success and disaster. For example, you must be ready to do damage control and minimize your losses if you make some marketing missteps. Similarly, you must piggyback on successes.
Let’s say you run a modest marketing campaign that generates interest in a certain market. It can take a while to come back with a new ad and build on the momentum if you didn’t plan for it. Failing to strike when the iron is hot is like throwing money away.
You must make quick decisions whether you’re planning a future campaign, handling a crisis, or managing your team. Wasted potential is one of the biggest missteps a company can make in marketing. All the hard work, market research, time, and money will go to waste if you don’t plan for everything.
Risk Mitigation is Key to Marketing Success
Companies face countless challenges in marketing, but they aren’t insurmountable. Careful planning and research can help you stay ahead of the curve and avoid damages, both financial and reputational. Establish team-wide principles, invest in solid cybersecurity, and stay on top of cultural tastes to make the most of your marketing efforts.
