Marketing and Financial
All promoting plans ought to include a major economic dimension. Evolution of price and income (for the manufacturer, product, manufacturer product line, etc . ) expressed in monetary products or percentage of sales, budgets necessary to implement tactics and promoting plans are all necessary aspects of the advertising plan. Cost management and earnings analysis can also be key areas of marketing preparing and control, which signifies financial tools .
Many of the advertising decisions will be and should always be viewed as expense decisions. Each time a new product decision is made, financial instruments and criteria needs to be used to assess the investment . This type of evaluation of marketing decisions ought not to be limited to new releases and should incorporate decisions on advertising, campaign, price and distribution (virtually all elements of the promoting mix). Cross-functional linkages between marketing and the other organization [... ] ind. organization 245 The web link between marketing and finance is not restricted to the use of financial input once developing marketing strategies and programs. The development of any financial plan involves capital requirements, cash flow analysis, credit rating and other economical policies that want marketing inputs. Such advices, especially those associated with sales and revenues forecasts that are listed in different promoting plans are essential for any economic planning .
Moreover, a marketing way of financial decisions offers a brand new perspective usually lacking in the specialized financial literature. Consider, for example:
Ж’ The utilization of the annual financial information and other reporting documents while elements within a communication marketing campaign addressed for the financial community;
Ж’ The evaluation of responses associated with changes in selling price, payment strategies, discounts and credit;
Ж’ The application of economical performance indications to relevant market sectors and/or certain products;
Ж’ The impact of different marketing activities (example вЂ“ launching fresh products) upon investors' expectations and, subsequently, on the market cost of the stocks.
All these links and interrelationships between the activities performed by marketing and financial are shown in desk 2:
Links in interrelations between Advertising Finance
Advertising Activities Type of relation Fund Activities
Market evolution prediction;
Sales progression forecast.
Capital requirements &
Cash Flow Evaluation
Marketing Organizing and
developing marketing activities
Capital requirements &
Handling and monitoring
Product administration decisions
Establish financial profit
Decisions about pricing guidelines
(marketing combine )
Establishing credit guidelines for
different categories of customers
(marketing mixture )
Credit reporting financial benefits 246 Daniel Micu, Liliana Ifrim, CДѓtДѓlina Daraban, Claudiu Purdescu several. 3. Marketing and Production
The link between advertising production is actually a dual one. On one hand, production capabilities decide the number and type of goods which can be marketed, and, however, a more correct prediction of sales forecast for each merchandise and product line is essential for efficient production functions . Taking into account the fluctuations and uncertainties in the demand on most products and the difficulties they make in reaching efficient development operations, administration can undertake two major strategies: a) change the creation capacity simply by changes in current resources (overtime, 2 nd
and/or three or more
etc . ), improved inventory management, subcontracting, etc .; b) influence the type, level or perhaps timing of demand in agreement with all the production potential constraints. This kind of latter approach can be obtained through the use of specific marketing strategies such as marketing, sales advertising, pricing, product (by adding or getting rid of...