Managing Your Advertising and marketing: 5 Ideas To Cut back The Threat Of Failure

Running a business is fraught with risks of all kinds, from litigation to financial collapse. If your business model is too risky, you will struggle to stay afloat and you may have no choice but to close your doors. When companies adopt risk management strategies, the risk that arises from your marketing efforts is often overlooked, such as: B. bad customer service, bad reviews and product defects. Today we’re discussing managing your marketing to avoid some of the risks you face with customers and other aspects of marketing your business.

Image courtesy of Ten Pound Hammer

Manage your marketing to reduce the risk of failure

Check out the neat graph above that shows how a brand should calculate ROI (return on investment). A key element of all of your business strategies, supporting the ROI of your marketing efforts, is critical to your growth and success. Too little sales or too much spend on marketing efforts that don’t improve performance and you can quickly find yourself in a financial situation where you either have to close your doors or borrow money to stay afloat, which is expensive is when you repay that money with interest.

In order to manage your marketing for a favorable ROI, you need to develop a marketing plan based on a thorough analysis of your market, your internal strengths and weaknesses, economic conditions, your goals, and other issues that may affect yours Impact ability to succeed. The proof, however, lies in the pudding, meaning you need to manage your marketing plan to make sure you are executing strategies effectively and have systems in place to optimize your ROI. Let’s start by discussing some of the marketing elements needed to effectively manage your marketing beyond the marketing plan.

1. Plan your marketing and business

Another way to ensure that you are managing risk in your company is to create a business and marketing plan that are closely related. For example, when you first open the doors of your company, investors want to know that you have a five-year plan for your company. In particular, you need to consider different elements of your business, starting with the sales forecast.

Forecasting sales is a challenge, especially for a startup with no sales history for reference. Here’s a nice article on how to make a sales forecast. Once you have your forecast, the next step is to plan your operations for the next 5 years (more in Eastern countries). Of course, your planning will be less detailed as you go further into the planning, but it is still important to make sure that your direction is planned for the future.

The marketing plan forms the basis for the sales forecast and is therefore a starting point for creating your business plan, with a lot of back and forth between these two planning functions.

2. Set a realistic budget

Setting your marketing budget is challenging to get started because you don’t have the data to estimate how much money you will need to spend on marketing to meet your goals. But don’t throw up your hands in frustration. Even startups have some sources of information that they can use to develop a realistic budget. For example, you can view industry averages as shown in the graphic below. As you can see, this graph shows how much you should budget (as a percentage of expected sales) based on your industry.

Achieve success

To get a more nuanced view of the development of a marketing budget, you should look at the marketing budgets for listed companies that are required to provide annual reports to shareholders. Here is a website with options on how to find this financial information.

Once you’ve established your overall marketing budget, you need to create a monthly marketing budget for your business. Sometimes you split your budget evenly across the months. In other cases, focus your budget on specific times. For example, if your business is seasonal, e.g. With lawn equipment, for example, you should focus your budget just before spring and throughout the summer and save in late autumn and winter. As a new business, you may be more focused on your budget in the start-up phase and then rejuvenate.

The next step is to allocate your budget [part of the resources element] through various campaigns as part of the creation of action plans [see an action plan template below] to lead the implementation.

Marketing Action PlanImage courtesy Creately

3. Customer service

Managing your marketing to reduce risk relies heavily on great customer service. Poor service not only leads to costly efforts to mitigate the damage, such as replacing products and spending money on customer service agents, but also to negative consequences as the news of this poor service is widespread. After all, negative word of mouth spreads farther and faster than positive ones. While they may not complain to you directly, unhappy customers share their negative opinion with an average of 9-15 other people. Make an influencer unhappy and you will have lost your reputation, possibly forever.

To avoid the negative effects of poor customer service, here are some things you need to do:

  1. keep your promises. Make sure you aren’t over-promising and that you can keep the things promised almost 100% of the time.
  2. Keep lines of communication open. If you are expecting a service failure, be quick to report that fact to the buyer, along with the steps you are taking to compensate them for the inconvenience. Also, share actions that you implement to ensure that such an error never occurs again.
  3. Responding to complaints quickly, thoroughly and openly rather than trying to bury them. Deleting negative comments on social media has the opposite effect of the desired result. By deleting a negative comment, you are encouraging angry customers to post negative comments on your social media.
  4. Regularly conduct a customer service audit to identify and fix potential issues that could lead to errors. Below is a customer service review checklist to get you started managing your marketing.
  5. Build a customer-centric culture and make sure everyone knows how their work affects customer satisfaction.

4. Diversification

You have no doubt heard the phrase “too many eggs in one basket”. It’s a simple idea, but one that shouldn’t be overlooked when running a business. The more diverse the product you offer, the better you as a company can weather a storm that affects a product or two. For example, during the pandemic, demand for craft breweries disappeared overnight. Smart owners have switched their business operations to focus on one product in demand during the pandemic, using similar equipment to manufacture.

In terms of marketing, don’t get me wrong, products are an important marketing decision. It doesn’t make sense to limit your campaign to one form of advertising. Spread your marketing budget across multiple marketing channels, especially at the beginning when you have no idea which marketing campaigns are getting the highest ROI. Take into account both traditional marketing and digital marketing channels. Here are a few options to consider:

  1. A website that is an absolute must
  2. Social media
  3. Digital advertising
  4. An attractive storefront, regardless of whether you run a physical or a virtual business
  5. Local advertising, including Google My Business for digital local marketing

If you have excess capital, consider diversifying into various financial instruments to increase your capital until you need it for other activities.

5. Use the data

After all, managing your marketing relies heavily on the best tool for your business today. This is undoubtedly the enormous amount of data that is available to you. Regardless of the type of business you run, you have a tremendous amount of data on customers and their behavior, your internal business processes and the activities that represent the highest ROI, operational optimization data, and many other types of data. Never before in company history have companies seen such a large amount of data available for planning and optimizing performance. Use this data to your advantage and you will see incredible results for your business. Here are just a few of the data sources available for analysis:

  1. Google Analytics to track your website’s performance and other digital activity
  2. Email marketing data from your provider to track the growth of your subscriber list and the performance of your email marketing campaigns
  3. Internal customer data to determine key metrics such as CLV (Customer Lifetime Value) and to identify other aspects that are critical to achieving greater benefit for your customers, e.g. B. demographic data
  4. Ad performance from social media or Google advertising campaigns
  5. Internal performance metrics, including critical factors such as on-time delivery percentage, number of complaints, feasibility ratings, and more

Conclusion

We hope this discussion on how to manage your marketing effectively helps you understand the elements you need to manage business risk and ensure the long-term success of your business. If you take the correct steps outlined here, you can save the future of your business.

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Author: Angela Hausman, PhD

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