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.
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hope to learn a lot this being my first time learning finance.