Marketing Finnance Notes
MARKETING FINANCE- NOTES
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.’ The new one is: ‘The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer-centrically, marketing brings positive return on investment, satisfies shareholders and stake-holders from business and the community, and contributes to positive behavioural change and a sustainable business future.
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THE FIRM AS AN ECONOMIC UNIT: in order to survive and grow, a firm or business unit has to be economically viable- it has to run as a viable economic unit. In the first instance, the firm has to acquire or make available to available itself some resources. Only then, through planned, systematic, efficient and effective use of such resources can the firm produce some results. The resources and results may be described as input and output respectively. The balancing of such inputs and outputs should eventually leave some surplus. The surplus is called profit in commercial organizations. When profit does not accrue, the firm cannot be called an economically viable unit. Another interesting point to note that both resources and results are external to business and only through management skills can resources be exploited to produce results favourable to the business unit.
Resources are of various types. They are chiefly:
1. Men 2. Materials 3. Machines 4. Market and 5. Money
Each one of these resources needs efficient management. This is how different functions of management have been developed.
1. Men : Personnel Management 2. Materials : Materials Management 3.
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.’ The new one is: ‘The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer-centrically, marketing brings positive return on investment, satisfies shareholders and stake-holders from business and the community, and contributes to positive behavioural change and a sustainable business future.
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...........................
THE FIRM AS AN ECONOMIC UNIT: in order to survive and grow, a firm or business unit has to be economically viable- it has to run as a viable economic unit. In the first instance, the firm has to acquire or make available to available itself some resources. Only then, through planned, systematic, efficient and effective use of such resources can the firm produce some results. The resources and results may be described as input and output respectively. The balancing of such inputs and outputs should eventually leave some surplus. The surplus is called profit in commercial organizations. When profit does not accrue, the firm cannot be called an economically viable unit. Another interesting point to note that both resources and results are external to business and only through management skills can resources be exploited to produce results favourable to the business unit.
Resources are of various types. They are chiefly:
1. Men 2. Materials 3. Machines 4. Market and 5. Money
Each one of these resources needs efficient management. This is how different functions of management have been developed.
1. Men : Personnel Management 2. Materials : Materials Management 3.