Risk management refers to accurately identifying, analyzing, and controlling threats to the companies’ earnings. These internal or external risks to the organizations generally arise from various sources. Some of the most common ones are financial uncertainties, errors in decision making, legal liabilities, and natural disasters. In marketing, the risks occur when there is a failure to implement sales promotional campaigns successfully. This results in a considerable loss of revenue for the enterprises.
Michael Saltzstein is a marketing, corporate insurance, and risk management specialist from America. He has years of valuable experience developing award-winning multimillion-dollar cost reduction and bottom-line profit improvement strategies for leading companies. The enterprises acknowledge his contribution in successfully implementing these risk management programs. Due to his efforts, these organizations are now able to conduct their business operations smoothly.
In recognition of his services, he has won many industry-based awards. He is also passionate about swimming and never misses the opportunity to take a dip in the pool as a former USA Swimming official is responsible for drafting and executing a six-point program to eradicate sexual misconduct in the sport.
Pros of marketing plans
He explains all companies need to maintain a marketing department run by experienced sales managers and executives. They are responsible for launching suitable sales promotion strategies that enable them to gain a competitive edge in the market. These plans not only boost sales but build the companies’ brand image in the market. Business professionals even decide how to approach prospective customers and strengthen relationships with them.
The common business risks which the marketing department of companies face when implementing sales promotion strategies are:
- Being slow to address negative online customer reviews, which affect the company’s brand image,
- Failing to recognize changing trends, the customer preferences, tastes, and their purchasing habits,
- Not being able to judge the targeted audience when conducting market researches correctly, and
- Publicizing misleading promotional messages which ultimately harm the marketing efforts.
Reasons to have a marketing risk management plan
In this situation, the companies need to formulate and implement a suitable marketing risk management strategy. The plan should curb the risks sales executives face when spreading the promotional campaign messages to potential customers. This increases the likelihood that buyers will respond positively to the campaigns. Taking this step is important for the following reasons:
- Helps the marketing team to anticipate the risks which are likely to arise during campaign launch,
- Enables the team members to assess the magnitude and frequency at which the risks occur, and
- This leads to the development of countermeasures to significantly reduce the impact of the risks.
Michael Saltzstein concludes by saying it important for all companies to include a risk management clause in their marketing program. This enables their sales executives to foresee the risks which likely to occur when launching sales promotion campaigns. They can then find ways to mitigate these risks or avoid them altogether. This ensures they reach out to the right customers to boost sales and bottom-line profits in the future with success!