The Risks of Business
Operating a business is really a risky proposition. It requires a constant and arduous effort to understand an environment that is constantly changing and evolving, try to make a prediction of the future, and then to commit funds on a strategy that will hopefully be profitable.
The ingredients within the business environment are made up of competitors, consumers, customers, the government, and politics; each ingredient is working with its own predictions and assessments about the future. The future is unpredictable but the more you know about the environment today the better prepared you are to take risks. Market Research takes snapshops of the business environment ingredients through a number of methodologies to isolate and clarify the most important data to then develop a strategy to sell products and services in the marketplace.
Investments in equipment and materials are made, costs are incurred, contracts are signed, and then people are employed to undertake a task that may or may not be foolhardly depending on the amount of research and management training of the owner. If the business does not provide the customer what they want and/or the promotion is ineffective because of a poor marketing strategy or tactics or promotion is too expensive, or a terrible location is chosen the business will fail.
Advertising is effective when the message is remembered. Repetition and consistency of a message is at the very heart of the success of any advertising campgaign. Text and graphics should work together to foster an image of a product or service to create a brand awareness for the company.
The risk of prognostication in any business becomes more difficult when you try to ascertain if your current position in the marketplace is a function of your business plan your marketing plan or the national and/or local economy.
Public Relations is a tool to get the facts out about your company and your product and services and to get some credibility and public awareness.
marketing is more the tool used to analyze the four P's: Product, Price, Place, Promotion.
What is the mission of your business?
Questions
Who?
What?
When?
Where?
Why?
How?
