Relationship between Finance and Marketing

Finance and marketing are the two pillars on which the growth and profits of company are dependent and to think that marketing and finance have no relationship is a mistake because if the company does not integrate finance and marketing then it is in big trouble as they both are needed together in order to produce great results for the future of the company. Finance is concerned with all financial aspects like profits, costs, feasibility of projects, sales growth, financial performance at the end of year and so on while marketing is basically concerned with sales targets, sales volume, sales in comparison to competitors, advertising and publicity, data mining and so on. Let’s look at the relationship between both of them –

From the above the first key take away is that we all know that without advertising and publicity the sales of company products will not improve and without sales there will no profits so without marketing there will be no need for finance as basic function of finance is to find ways to increase the profits and when there is no profit the whole finance function will become redundant. Similarly for successful marketing one need to have strong base of finance because it is finance through which company set goals for marketing like sales targets, sales price looking at cost of product, compensation for sales people, planning and seeing that everything is going according to plan or not and so on.

As one can see from the above that marketing and finance are like husband and wife although they will always have difference of opinion but they will be together forever as they both are interrelated and they cannot function in isolation and therefore companies should nee see marketing and finance as different departments rather they both should be allowed to work together so as to help company in achieving its pre defined goals.

0 comments… add one

Leave a Comment

Related pages

disadvantages of mergers and acquisitionsreceived advance payment journal entrycompetitive pricing advantages and disadvantagesdefine cosigneeprofitable ratioskimming strategiesadr full formdefine consigneesdisadvantages of comparative advantage theorymanagerial accounting relevant costs for decision makingprivatization advantagesadvantages and disadvantages of invoice discountingentry of prepaid expensesdurable goods definition economicsfree floating currency definitiondefine consignee and consignornormal goods examplestypes of financial marketmoil ipopitfalls of capitalismunearned revenue entryexample of penetration pricingobjectives of demat accountadvantages and disadvantages of mixed economiesconcept of diminishing marginal utilitybenefits of monopolistic competitionglobalization benefits and drawbacksdefinition of nondurable goodsdiscounting billsunqualified audit report exampleadvantage of payback periodadvantages of capitalist economyadjusting entries for prepaid expensesadvantages and disadvantages of a joint venturebarter system definitionadvantages and disadvantages of demographic segmentationwhy is deflation a problemsubstitution and income effect examplesdeclining method of depreciationadvantages of capitalist economydisadvantages of organisational structureecs system in bankdifference between inferior and superior goodsfactoring in financial managementskim pricing examplessemi finished goods examplespenetration pricing strategyprepaid insurance entrylaf meaningcosting and pricing methodsfree market economy advantages and disadvantagesadvantages and disadvantages of organizational structuresadvantage of payback periodexamples of conglomerate diversificationadvantages and disadvantages of borrowing moneydisadvantages of monopolistic competition market structurefeatures of capital budgeting decisionmeaning of fiiprepaid insurance journal entrydefine market skimming pricingexamples of liabilities accountsicici bank founder namedisadvantages of payback periodwhat is a decentralised organisational structureaum full formdisadvantages of advertising on radiowhat is cost pull inflationdisadvantages of m&aadvantages of autocratictypes of financial marketstrengths of socialismexample of debit noteadvantages and disadvantages of using social mediaficitiouswhat is market skimming pricing strategydifference between systematic risk and unsystematic riskwhat is the difference between accounts payable and receivablecore product actual product augmented producthow to comment on profitability ratiosfeatures of urbanisationconsumer taste and preferences