How to Manage Financial Risk in Your Marketing Plans?

Marketing plans are integral to any business, especially if it is a of B-to-C or Business to consumer model. This typically would be products that involve consumers as the final end users therefore, they need to be informed by the product. The entire process then follows is the marketing which is in the form of advertisements, social media promotions, on ground activities, sampling etc. Sachin Karpe will guide on managing financial risks in marketing plans.

Any kind of marketing plan needs a budget to take it ahead. The most challenging part is the lack of measurement of Return on Investments (in this case the marketing spend). Not all media of marketing has a mechanism to measure the outcome. The only way remains the increase/decrease or leads for a particular product. This may be seen as a financial risk by many in a business. But, as a businessman, one needs to understand that it is not important to monetize everything in business. There are ancillary activities like marketing, admin and HR, to name a few, that help keeping the business afloat. The best way to, however, avoid any financial risk in a business is to not allocate more than a specific percent of annual profit for marketing. It must be understood that whatever is spent, does eventually come back in terms of brand recall and visibility which later converts into buying, explains Sachin Karpe.