- Introduction Of Digital Marketing:-
In this competitive world, Many organizations compete with each other due to aggressive advertisement and publication from Digital Marketing. As a result, they all spent millions of money on Digital Marketing. Often, inappropriate funding sources for funding organizations should be in the situation of liquidation and insolvency.
As a result, Digital Marketing is the best solution to compete with your competitor. In Digital Marketing, many options for promoting your products to worldwide customers are available.
All the problems started from improper planning of the source of capital and its utilization. So, it would help if you prepared a Proper Budget for the proceeding year. In that Budget, you should include the capital and revenue expenses- receipts. But, our management techniques are beneficial to solving the funding problems in the organization.
After a proper budgeting strategy, you could start your advertising campaign and projects. However, without a budget, your campaign could not be run and get success.
In a giant organization, Billions of capital are invested. With billions of capital, many challenging factors come, and these factors destroy the progress and development of the whole organization and market.
So, every organization is starting to appoint a Manager of Digital Marketing with expertise in the Digital World of Marketing or Customers. However, because internet consumption is increasing at high speed, the organization's plans will fail due to uncertainties related to Digital Marketing.
In this article, I put a case study related to the real problems of managing the funding of an organization or company relevant to Digital Marketing.
- Case Study:-
The RVP Ltd is a famous organization for providing Jewelry Products Worldwide. It has $ 100 million in sources of capital. It has the organization's liability (Equity Shares, Preference Shares, Public Borrowings). In the Article Of Association, Company would be liable to pay the Dividend and Interest Quartly.
Then the company's Board of Directors decided to redeem the capital and dividend because they decided to purchase the machinery to save time and cost of production. Then Company's CEO, Mr. Thomas, decided to stop the Advertising campaign to save capital to spend.
Assume that You're the Digital Marketing Manager of the RVP Ltd, and the Board Of Directors demand the right and accurate suggestions from you.
- Questions:-
-
Which is the internal factor affected in this case?
-
What would you suggest for the company's growth and development? And Why?
-
How Much Capital Should Require For Digital Marketing?
- Answers:- (Solutions)
1. The first question answers that RVP Ltd. suffers from a lack of Coordination between the Board and Executives. They both of not try to understand the trends of the market. The board of directors behaved arrogantly toward the CEO and executives. They believed in centralized authorization. Directors are wanted to handle all the organization's problems one-handed, which is impossible.
While talking about the point of view of the CEO, he tried to stop the campaign of newly launched jewelry like engagement rings, and wedding necklaces. He decided to do no more advertisements on selling platforms that cost $2 million.
This type of quarrel takes a big form, which is unsuitable for the organization's health. Moreover, it increases hatred between Executives and Directors, which will downgrade the organization's progress. As a Digital Marketing manager, it's your liability to be aware of the Directors and CEO of the severe result.
As a Digital Marketing Manager, I suggest that the Directors and CEO properly plan with a deep discussion about funding. Because funding problems regularly occur in the organization, your planning must be flexible, not fixed. So, as a Digital Marketing Manager, I would suggest three options to management.
The first option is to Maintain the Reserves. If the organization's profit is much more than the expected profit in any financial year, then no dividends are paid to equity shareholders. In RVP Ltd, there is no planning for Maintaining reserves from Profit & Loss A/c. And company stop at the door of liquidation. So, I decided to maintain reserves that can be helpful in the future and some uncertain conditions like riots, strikes of the worker union, and workers destroying the machines and assets of the company.
Because in Digital Marketing, many the Billions or Millions of dollars are required to reach worldwide customer's range.
Then I talk about the lack of coordination between Executives and Directors. Directors are the trustees of the company's shareholders and are liable to shareholders. So, I suggest that the company organize an annual function where Directors, Executives, and Workers are engaged with their problems towards each other. "Human Resource Management" report shows that many companies organize this function to create a familiar environment.
The corporation should organize the course on Digital Marketing from various useful platforms like YouTube. Also, many educational sites are provided knowledge and the importance of Digital Marketing. In this training program, choose only youth employees who are fresh graduates because they have the potential to increase customers' reach.
In a Slow But Effective Digital Marketing Campaign, the Board of Directors should encourage the efforts of the Digital Marketing Team or Department. In addition, directors should support the Digital Marketing Team financially and provide other psychological benefits.
Only the Digital Marketing team can increase sales. That's why they're very important assets for the organization.
The third option is not to take long to make the necessary decisions. If there is a lack of timely decisions, there's a chance of missing any benefits. Then make timely decisions. The RVP Ltd company's CEO decides to stop the advertising campaign for the new cosmetics and beauty products. This is a foolish decision, and thinking of him because advertising helps reach the customer's market worldwide.
As we mentioned above, Digital Marketing is the necessary equipment to increase and boost an organization's sales ability. As a result, the organization earned more profit than ever.
If the company stops advertising the new products, customers will not know about RVP's newly launched Products. So, the organization must follow Digital Marketing for new products.
At this time, Directors should release the stubborn behavior and concentrate on the necessary things for the organization. Therefore, they should waive the decision to purchase the machinery. So, as a risk manager, I suggest they focus on the new product selling strategy through Digital Marketing.
3. The company should issue the Equity Share Capital because they're real owners of the corporation. They invest their money into the organization. In a corporate organization, Equity Shareholders provide capital to fulfill sundry expenses of the company. Without Equityshareholders, a company looks like a body without a soul.
Equity Shareholders are provided long-term capital to the organization for an advertisement campaign like Digital Marketing. The report says that Digital Marketing is very tough because it needs base equipment like the internet, computers, employees, cabin, and helping tools to know the buyer behavior.
If a company turns over between $100 million, it must be paid 25% of its financial year's revenue for Digital Marketing. Because other factors play a severe role behind the scene, the company should maintain capital for other expenses.
Conclusion:-
From the Head Of Digital Marketing of the Organization, I suggest Digital Marketing or Promotion of products quarterly. Because many of the changes are uncertain in the Business environment, always prepare plans for Digital Marketing with the concentrate on the future's unexpected changes.
Special Note:-
I hope you like this article on How To Manage Fund For Digital Marketing In Organization. This article will be helpful to you in running your business smoothly in a current changing environment. This article's suggestions are based on the experience of actual case studies and solutions.
Website:- https://www.ourosjewels.com/
