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20 How to Succeed in Marketing by Being Aware of Risk ‘A JV with Eddie’s organization will leverage our skills and their reach,’ says Will, spouting his usual marketing jargon. ‘Any questions?’ he enquires, looking around . ‘Don’t we risk teaching a potential competitor about our market?’ you ask slowly. ‘And if they mess up, it’ll our reputation on the line.’ ‘I’ve known Eddie Gardner for years,’ says Will. ‘He’s solid. Trust me.’ The meeting ends, with everyone agreeing that Will’s JV is the start of great things for the organization. You’re not so sure . Marketing is Opportunity Risk Risk isn’t usually associated with marketing. And marketing people don’t usually talk about risk. Cautious finance people and CEOs think about risk, while marketing people are more cavalier – or that’s the way the world sees it. Yet there is no shortage of marketing threats. Loss of a major customer, competitor innovation, low- cost imports and erosion of margin by increased competition – it’s hard to keep profits and market share buoyant in a rapidly changing world. With today’s ‘lightweighting’ of the corporation, many businesses have fewer assets. They are less at risk from fire, say, or environmental pollution than in the old days when the corporation was a smoke- breathing satanic mill. Today organizations depend more on branding, design and IP. So marketing risks have assumed a greater importance. Awareness of marketing risks allows a business to stay clear of the pitfalls, and helps to clarify some strategic issues, such as: • What markets should we invest in? • How are our customers changing? The Sources of Marketing Risk Marketing risk comes from two categories: outside the business and inside it. Outside risks are the big strategic issues that are formed on the world stage, such as recession and tariffs. The inside risks are down to the company alone. They include failure to innovate and reliance on too few customers.