Finance without marketing is equivalent to Holmes without Watson. Your campaigns will only produce good results if the two complement each other.
Why? Finance must comprehend the plan’s benefits to justify and unlock the investment because marketing needs enough spending to support its strategy.
The conventional belief is that marketing wants to spend, regardless of whether you have a large company with organized departments or a small company with people running the show. Conversely, finance desires to save, resulting in a “us versus them” conflict.
It is detrimental to business. Finance and marketing must have a common understanding of the business and value each other. for them to collaborate to
- following sales trends
- accurately set campaign budgets
- Effective resource allocation
Those above are essential to the company’s financial success because it helps it develop a cohesive strategy that promotes growth in the right sectors. A deeper understanding and effective communication are essential for achieving this outcome.
Form A Partnership Between Finance And Marketing
Only when advertising and finance are aware of one another’s roles in the business and the overall objectives can success be achieved.
The first meeting needs to involve both parties. To dispel the idea that money is there to restrict spending or that marketing is not properly evaluated concerning performance.
You can do this by combining your knowledge of the industry with the following:
- Which business divisions do you both want to expand?
- What role will the growth plan play in the larger business strategy?
- In terms of its effect on profitability, what does growth mean?
- How much money should be allocated to this growth?
With this information at hand, finance can justify and budget for start-up costs while also taking effect on the rest of the company into account to support growth. And marketing has the backing it needs to implement a worthwhile plan.
These departmental meetings must occur frequently. So that communication and quick responses from both parties to strategic changes are maintained.
The Role of money in marketing strategy
Allowing your finance team and manager to contribute to the strategy will help them become emotionally invested in marketing. Requesting questions from marketing
- What are the ideal customer and revenue growth targets for the company?
- To facilitate this growth, how should it be distributed?
- What products or services are the most lucrative?
- What percentage of customer spending is split between your goods and services?
- Which regions or clients are the most lucrative?
A significant plus is that finance has a distinctive perspective on your clients, goods, or services. They can use this data to assist marketers in developing more profitable and targeted campaigns.
This connection can be used by finance and marketing to boost output and boost job satisfaction.
The marketing division makes:
- A spending limit that they can adhere to. They don’t need to request permission repeatedly.
- They need clear deadlines so they’re not pressured to meet arbitrary ones.
- Choice-making freedom after the budget has been approved.
- An understanding of the outcomes the company demands right away.
- The ability to monitor results and make sure your plans change as needed as time goes on.
Also read:- What Are the Benefits of Video Marketing for Businesses?