International Journal of Applied Finance For Non-Financial Managers (ISSN: 1742-528X) Volume 1 Issue 2
Southampton Business School
In this series of articles the relationship between marketing and finance is being explored. It has been stated that true marketing is strategic in nature and lies at the very heart of the organisation in providing a range of planning tools to help the organisation meet its customers' needs and grow in competitive markets.
A marketing plan should always support the corporate plan. In particular, marketing should always support the financial goals of the organisation. Whilst those goals may often be short-term financial measures such as sales, ROI and market share, strategic marketing seeks to position the organisation for long-term growth.
These issues are of concern to marketers because short-term measures, undoubtedly important in specific contexts and market situations, hinder the development of a longer-term strategic vision which will position the organisation for sustained growth.
Chasing such objectives can lead organisations to pursue radical cost-cutting and investment-depleting strategies, which improve short-term performance but damage long-term growth. But for organisations taking a more strategic long-term view which sees cumulative rewards accrue over a long period of time, say five to ten years, it is important for financial executives to be able to have the confidence in their marketing colleagues to help shape the future direction and positioning of the organisation.
There are a number of ways in which finance and marketing people can work more closely together as illustrated in the following diagram: