The truth is that most businesses out there do not even think about marketing risks as they create their overall strategy. Running any marketing campaign without thinking about potential risks is a really bad idea. We are faced with many different risk types that you might need to deal with. This is true for everything from an architecture company to cryptocurrency investments.
Unfortunately, it is really hard to talk about all potential marketing risks since they are many. This would take a lot of time. However, we can always highlight those marketing risks that are the most common right now.
Every single marketing campaign you launch has an effect on how the brand is perceived by current and potential customers. The valuable brand is always at risk of losing value due to the actions of competition and failures that could appear, like when doing rebranding in an improper way. Declining brand awareness is something you should never risk as it has really long-term effects.
Products and services rely on demand. If there is no demand, nothing can be sold. If demand is too high and supply is low, the business misses out on so much potential profit. The potential that product demand is going to fail or cannot materialize can happen due to various different reasons, including customer preference and need shifts. It is also possible that demand falls because there is an innovation that made products obsolete.
It is always a very bad idea to depend on a limited number of regions, products or customers for a majority of revenue. This happens much more often than anticipated and when problems appear, few people actually are prepared. Businesses need to widen their customer base to avoid too much concentration. As an example, the company that generates eighty percent of its revenue from just 5 customers ends up losing a lot of revenue if just one goes away.
Product Development Risks
This includes all the risks related to launching and developing brand new products. If you create a new product, there is normally a very high failure rate that appears when launched. In product development you have to deal with innovation risk and project risk. Simply put, you need to prepare for things that might go wrong with the product when launched.
Out of all the risks, these are the ones that business owners normally think about and analyze. Everything related to the price needs to be taken into account. Knowing exactly what price is the best for the business is really important for success. If the price is too low, you are missing out on money. If the price is too high, customers might not be interested.
Last but not least, there are many different operations risks that can appear. This includes all that can be wrong with the core business processes. As an example, when manufacturing problems appear, product launches can be delayed or when supply chain problems are present, inventory levels are poor.