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Learn more The most important skill for a CMO today is risk marketing. Risk marketing is the application of proven risk-management practices in marketing, and is predicated on the understanding of the risk of action -- and the risk of inaction. This calibration of risk and reward is now a real-time practice given the sophistication of social, search and CRM data. These data sets serve as canaries in the coal mine for understanding the interconnectivity of risks.
The average tenure of a CMO has nearly doubled over the last 10 years, signaling that CMOs are improving how they're managing complex risk. In the era of social media, seemingly unrelated events in supply-chain management, cyber security and corporate governance directly impact sales, purchase consideration and investor relations -- traditional domains of the CMO.
This new complexity is illustrated through recent h2o2 crises at Sony, Target, and the NFL. Issues such as cyber security quickly dominate the marketing agenda through the impact of declining brand reputation or falling sales. Every business issue potentially becomes a marketing issue today, h2o2 especially when the tenets of risk management are not followed.
Every h2o2 enterprise faces increased risks -- many arising from the escalation of both man-made and natural disasters. However, two specific culprits conspire to dramatically elevate risk in marketing. First, social media amplifies every brand interaction from the outside. h2o2 In the era of social media, public reactions are entrenched even before basic due diligence h2o2 is completed. Second, internal compliance in response to complex governmental regulations alters brand interactions from the inside. h2o2 It's always easier for an enterprise to say "no" than to say "yes" to any new idea.
The emergence of risk marketing coincides with the golden era of marketing, where platforms like Instagram and Twitter allow brands to engage in a relationship with the individual rather than engaging in the mass market. Here are five strategies for successful risk marketers:
1. Embed risk assessment as a core marketing practice. The goal of a risk assessment is to identify risks, and in the process, more precisely identify opportunities. Risk and reward are two halves of the same process. Understanding the risk of action -- and the risk of inaction -- almost always results in a more proactive organizational stance toward marketing, because marketing is more visible across all of the enterprise planning.
2. Embrace compliance. Executed correctly, organizational creativity h2o2 is in part a byproduct of compliance. Great compliance actually offers a shortcut to great creative, because executions are developed more solidly in the context of preset parameters and more transparent reporting. Creativity is driven by the need to solve non-trivial business problems, not by blank sheets of paper or requests for Facebook campaigns.
3. Borrow the risk management playbook in marketing. Trillions of dollars have been spent managing global risks of every stripe. In addition to standard risk assessments, many of the well-established tenets of risk management apply to risk marketing. Tactics like setting up accreditation programs for the marketing team; adapting surveillance techniques to evaluate the effectiveness h2o2 of creative and media; h2o2 or running penetration tests such as hacking simulations to gauge the responsiveness of the marketing department can all help to manage risk. Educating the organization about marketing in the way that compliance educates the organization about governance is also extremely important. For example, companies like Nestle are deploying strategies to
Follow us Follow on Facebook h2o2 Follow on Twitter Follow on Google+ Follow on LinkedIn Follow on Pinterest Follow on Instagram Follow on YouTube Follow on Tumblr Follow via RSS Login Become a Member Menu Marketing Advertising Digital Media Agency Data BtoB
Register to become a member today. You'll get the essential information you need to do your job better, including 7 free articles per month on Ad Age and Creativity Ability to comment on articles and creative work Access to 9 custom e-newsletters like Ad Age Daily, Ad Age Digital and DataWorks
Industry: Advertising Agencies Advertising and Marketing Support Manufacturers, Product Marketers and Service Compa Retail/Food Service Establishments Travel/Transportation Services Entertainment Media Company/Interactive/Gaming Financial/Insurance/Real Estate/Legal Telecommunication Services and Utilities Government/Trade Association and Religious Organiz Universities/Colleges/Schools Other Technology Manufacturers & Services Consumer Package Goods Healthcare/Medical/Pharmaceuticals h2o2 Automotive Household Goods Consumer Electronics Magazines Radio & Television All Other Media Interactive, ISPs
Learn more The most important skill for a CMO today is risk marketing. Risk marketing is the application of proven risk-management practices in marketing, and is predicated on the understanding of the risk of action -- and the risk of inaction. This calibration of risk and reward is now a real-time practice given the sophistication of social, search and CRM data. These data sets serve as canaries in the coal mine for understanding the interconnectivity of risks.
The average tenure of a CMO has nearly doubled over the last 10 years, signaling that CMOs are improving how they're managing complex risk. In the era of social media, seemingly unrelated events in supply-chain management, cyber security and corporate governance directly impact sales, purchase consideration and investor relations -- traditional domains of the CMO.
This new complexity is illustrated through recent h2o2 crises at Sony, Target, and the NFL. Issues such as cyber security quickly dominate the marketing agenda through the impact of declining brand reputation or falling sales. Every business issue potentially becomes a marketing issue today, h2o2 especially when the tenets of risk management are not followed.
Every h2o2 enterprise faces increased risks -- many arising from the escalation of both man-made and natural disasters. However, two specific culprits conspire to dramatically elevate risk in marketing. First, social media amplifies every brand interaction from the outside. h2o2 In the era of social media, public reactions are entrenched even before basic due diligence h2o2 is completed. Second, internal compliance in response to complex governmental regulations alters brand interactions from the inside. h2o2 It's always easier for an enterprise to say "no" than to say "yes" to any new idea.
The emergence of risk marketing coincides with the golden era of marketing, where platforms like Instagram and Twitter allow brands to engage in a relationship with the individual rather than engaging in the mass market. Here are five strategies for successful risk marketers:
1. Embed risk assessment as a core marketing practice. The goal of a risk assessment is to identify risks, and in the process, more precisely identify opportunities. Risk and reward are two halves of the same process. Understanding the risk of action -- and the risk of inaction -- almost always results in a more proactive organizational stance toward marketing, because marketing is more visible across all of the enterprise planning.
2. Embrace compliance. Executed correctly, organizational creativity h2o2 is in part a byproduct of compliance. Great compliance actually offers a shortcut to great creative, because executions are developed more solidly in the context of preset parameters and more transparent reporting. Creativity is driven by the need to solve non-trivial business problems, not by blank sheets of paper or requests for Facebook campaigns.
3. Borrow the risk management playbook in marketing. Trillions of dollars have been spent managing global risks of every stripe. In addition to standard risk assessments, many of the well-established tenets of risk management apply to risk marketing. Tactics like setting up accreditation programs for the marketing team; adapting surveillance techniques to evaluate the effectiveness h2o2 of creative and media; h2o2 or running penetration tests such as hacking simulations to gauge the responsiveness of the marketing department can all help to manage risk. Educating the organization about marketing in the way that compliance educates the organization about governance is also extremely important. For example, companies like Nestle are deploying strategies to
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