A primary principle of market research is to support brand decisions. This is possible by identifying data and information that directs consumer trends. In short, this allows a notable reduction in uncertainty and allows for better results in future planning.
Otherwise, many errors would be made due to unassertive actions and with a cost for companies that could make them unviable in the short term. Risk and exposure to factors that endanger the operation and existence of companies cannot be eliminated. What you can do is investigate the environment and anticipate the most likely situations.
For this reason, today we list four topics that are explored in depth when evaluating risk in Marketing.
Strengths. They are the positive and internal conditions of the analyzed subjects. It includes everything that can be considered a competitive advantage and that adds added value to the companies’ offering. Correct risk management will depend on the adequate and objective evaluation of this facet. Otherwise, you can fall into extremes that range from the perception that you have all the resources to be at the top of the segment or overinvesting in features that are not necessary for now.
Weaknesses. Internal negative factors are listed here. Sometimes it is difficult to admit what the areas of opportunity are, but when this is achieved, corrective actions can be implemented to improve the growth prospects of those who identify them in time. It is advisable to work hand in hand with a third party that is not related to the person who will be studied to increase the objectivity of the audit that this condition implies.
Opportunities. In this area, the external positive conditions of the environment where the brands operate are listed and analyzed. Here it is easier to do an impartial study since it refers to everything that can add to the strategies of the brands under evaluation. It includes both macroeconomic, political and competitor factors that play in favor of the subject under investigation.
Threats. Finally, external negative circumstances are studied. Just like opportunities, it is more accessible to identify them since they are in elements of the environment in which brands operate. It is recommended to have the support of external analysts for a better approach since it can lead to inaccuracies such as entrusting responsibilities to others and not to the person who orders an investigation.
The aspects listed above are just a way to study those internal and external circumstances that may represent scenarios that, if presented, would culminate in a disaster. If they are addressed preventively through improvement or change plans, it is possible to better face the challenges of the immediate future and those of the remote tomorrow.
At Acertiva we know our clients’ need to undertake this type of studies and for this reason we put at their disposal our analysts and strategic allies who are backed by our more than 20 years of experience in Latin America. Write to us today so we can tell you how together we can write your next success story.