How Functional Areas Work

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Unit 1 – Marketing

Task 2 (AO1)

In this section of my coursework I am going to be discussing how functional areas such as the marketing department work with different departments in order to run efficiently. I will discuss how different departments support the marketing department’s activities in order to operate efficiently.

The finance function of the business usually controls the cost, money going in and out of the business. They would keep a record of cost going out the business, and calculate whether the business is making a profit or loss. The finance department are responsible for sending invoices to customers, clearing cheques which are received, and also preparing payrolls so they can pay staff salaries. Anything to do with money is dealt by the finance department in any organization. The finance department work with the marketing department to help them with their finances. The finance department allocates the budget to support various activities the marketing department carry out. So for example, if the marketing department at Tesco’s want to carry out a promotion through direct mail, they would ask the finance department first; from there the finance department will decide if they are able to fund this type of direct mail promotion. Tesco’s would not be able to carry out this activity without consulting the finance department, because the money only goes in and out of the finance department. Furthermore when the marketing department need money for researching and development to design new products to attract potential customers, they would again consult the finance department who would allocate suitable funds, so that the marketing department can carry out this activity efficiently. The marketing department at Tesco’s may also need money if they want to distribute materials such as posters with special offers, if they don’t consult the finance department about this activity, then the marketing department at Tesco’s could be losing money for the business. Furthermore marketing departments at Tesco’s usually work within budgets specified by the finance department and this can have an effect on constraining the type of promotional activities the marketing department carry out.

If the marketing department at Tesco’s want to improve the website of the business, such as the features and design. They would need money from the finance department in order to improve the website. Hence, if the marketing department need someone to calculate costs of their marketing campaigns and their budgets, the finance department would sort this out. So whatever promotional activity the marketing department carry out which requires some form of cost, the finance department would work with the marketing department in order to fund the costs.

The marketing department also work with the customer service department in order for the business to run efficiently. If the marketing department at Orange receive a call from a customer regarding problems with their phone, they would put this call through the customer service department because that is what they do best. The customer service department is the base of any organization, they help all customers by providing solutions tailoring it to their problems, which therefore increases customer satisfaction and allows the customer to stay with the business. The way in which the customer service department would communicate with the marketing department would be by providing feedback to the marketing department to ensure that all customers needs are met. For example, if a lot customers call into orange just to ask a few questions regarding the iPhone, the customer service department would report this back to the marketing department telling them that the iPhone is really popular, therefore from this the marketing department would be able to do promotions on iPhones at Orange. Hence, this will not only improve customer satisfaction because Orange would be releasing products...
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