Group Marketing Strategy for Investors

A financially shaky company formulates a group marketing strategy to reassure hesitant investors that its commercial debacle does not result from a poorly formulated tactical plan. Corporate management may draw up the blueprint to explain that the organization's woes primarily come from a bad economy. The corporate investor-relations department typically coordinates financier-oriented marketing tactics.

Definition

An investor-relations strategy incorporates everything a company does to cultivate amicable relations with external financiers, reassure them about the organization's competitive prognosis and explain to the public the steps that management is taking to right the corporate ship. This outline targets a loose coalition of individuals and organizations that actively works to prop up the company's balance sheet and help it make more money. Any individual or business that pours money into an organization is a de facto investor, and financial commentators often distinguish between short-term and long-term investors. The former target a profitability window of 12 months or less, whereas the latter are in it for the long haul.

Relevance

A company draws up an investor-related marketing strategy to make sure everybody is on the same page with respect to profitability management and marketplace dynamics. In essence, the business engineers the blueprint to narrow the gulf between how financiers think the company should go about making more money and producing top-quality items and how top leadership conducts corporate policy. For example, senior managers periodically may stage investor conferences to justify the tactical choices they've been making, to seek the approval on long-term foreign investments and to ensure that investors understand it might take longer to reap profits in specific sectors. The idea is to carefully pore over operational data and accept constructive criticism from investors, not to reflexively endorse and implement all proposals they make.

Geography

Geography plays a role in how a company goes about formulating its group marketing strategy, especially if its financiers include foreign businesses and capitalists. To ease foreign financiers' doubts, the business may translate its investor presentations in major languages they speak or in which they conduct business. Alternatively, the organization periodically may schedule investor conferences overseas or dispatch corporate surrogates to appear on foreign media outlets and give fuller accounts of what the company is doing to trump the competition and make more money.

Staff Involvement

Professionals who attempt to improve a company's relationships with investors include financial managers, corporate strategists and department heads. Investor-relations representatives and corporate treasurers also work diligently to help the company settle outstanding differences with financiers and paint a brighter picture of the organization's finances and long-term competitive standing.