Marketing and finance departments in a company are generally at odds with each other due to their opposing orientations. But their qualities, when integrated, can be productive and greatly enhance value of the corporation. Financial input in marketing can create shareholder value and demonstrate how to achieve the required integration of the finance function with marketing for the successful modern business. The functions of these departments are as follows. Marketing function-To generate sales (revenue, income) to be used by finance department to meet costs, capital expenditure, service capital, strengthen firm’s financial position Finance Function-To ensure that a firm remains financially strong, solvent, liquid and profitable by employing its resources (raised/generated) efficiently, productively and profitably
Finance department is responsible for overall management of the finances of the company. It is concerned with budgeting, costing, treasury management, risk diversification etc. Finance department has to see that money is being distributed properly. On the other hand, Marketing department is responsible for realizing the wishes of the customers and then designing a product according to these needs so that customers are satisfied. Quite often, these functions run into problems and are unable to work to their full potential because of inherent relationship issues. The lack of co-operation soon becomes apparent when the team members work at cross purposes. Some of the conflicts that arise between these functions are addressed here.
ALLOCATION OF FUNDS
The most important conflict between finance and marketing department is allocation of funds. Finance department normally questions the expenditures by Marketing department. They reflect on the promotional campaigns or the overall money spent on marketing function is not bringing about any benefit to the company. On the other hand, Marketing department...