Question

In: Finance

Suggest marketing risk for a company

Suggest marketing risk for a company

Solutions

Expert Solution

Marketing Risks that a Company might face:

1. Brand Perception: A brand's value can be easily eroded by any negative word of mouth or event that jeopardizes the Company's image in the market. For example, huge numbers of negative customer reviews on social media.

2. Affiliations: Affiliation means tieing up with larger Companies and using their distribution channels to increase sales. However, there are risks attached in case the relationship with the affiliate deteriorates or we become affiliated to an unethical brand.

3. Event Branding: Incorrect or irrelevant branding of events, marketing, promotions, advertisements can also be problematic and earn negative reviews for the Brand.

4. Advertising: If a company resorts to fake advertising, i.e, making false claims in the ads which are unattainable, then this leads to loss of face and trust in the eyes of the customers.

5. Research and development: Investing in unauthentic sources for carrying out R&D attracts a lot of wasteful resources and ineffective marketing strategies in future.


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