Managing Marketings Link with

Other Functional Areas

A R I WA H Y U H I D AYAT
MUHAMMAD IQBAL
WILDAN AFRIZAL
YO H A N E S D W I K I
YUNI ASIH

Marketing and Other Functional Areas Provide Company

Resources for Strategy Planning and Implementation

Resource Requirements for

Marketing Strategies and Plans

Finance

Production &
Operations

Accounting

Information
Systems

Human
Resources

The Finance Function: Money to

Implement Marketing Plans
Investors
Investors
Time
Time Horizon
Horizon
Is
Is Important
Important
Investors
Investors
Expect
Expect aa
Return
Return

What
What Is
Is
Capital?
Capital?

Key
Key
Financial
Financial
Issues
Issues

Capital
Capital Comes
Comes
From
From Internal
Internal
and
and External
External
Sources
Sources

The
The CFO
CFO
Handles
Handles
Money
Money Matters
Matters
Opportunities
Opportunities
Compete
Compete for
for
Capital/Budget
Capital/Budget
ss

Working
Working
Capital
Capital Pays
Pays
for
for Short-Term
Short-Term
Expenses
Expenses

Other Efforts to Raise Capital

Debt
Debt Financing
Financing
Has
Has Interest
Interest
Cost
Cost

Winning
Winning
Strategies
Strategies
Generate
Generate
Capital
Capital

Expanding
Expanding
Profits
Profits May
May Mean
Mean
Expanded
Expanded Plan
Plan

Keeping the Money Flowing

Cash
Cash Flow
Flow When
When
Money
Money Is
Is Available
Available

Improve
Improve Return
Return of
of
Investment
Investment

Marketing
Marketing Mix
Mix Affects
Affects
Capital
Capital Needed
Needed

Marketing Implications of Production

Problems
Slow
Slow Production
Production
Quantity
Quantity
Adjustments
Adjustments

Stock-Outs
Stock-Outs

Source
Source Supply
Supply

Wasted
Wasted Marketing
Marketing
Effort
Effort

Difficulty
Difficulty in
in New
New
Product
Product
Coverage
Coverage

May
May Require
Require
Staged
Staged Distribution
Distribution

Need
Need to
to
Produce
Produce Many
Many
Product
Product Lines
Lines

May
May Require
Require
Outsourcing
Outsourcing or
or aa
Virtual
Virtual Corporation
Corporation

Where Products Are Produced

Matters

Moving
Moving
Production
Production to
to
Low-Cost
Low-Cost
Countries
Countries

Task
Task Transfer
Transfer

Overseas
Overseas
Production
Production
Has
Has Critics
Critics

Other Issues in Production

Mass
Mass
Customizatio
Customizatio
n
n Serves
Serves
Individual
Individual
Needs
Needs

Producing
Producing to
to
Order
Order
Requires
Requires
Flexibility
Flexibility

Mass
Mass
Customizatio
Customizatio
n
n Is
Is Not
Not
Mass
Mass
Marketing
Marketing
Sometimes Batched Production Is Still
Necessary!

Accounting Data Can Help in

Understanding Costs and Profits
Functional
Functional Accounts
Accounts

Natural
Natural Accounts
Accounts

Formal Financial
Accounting
Examples:
Salaries
Wages
Supplies
Raw Materials

vs.

Purposes for Which

Expenditures Are
Made
Examples:
Milling
Grinding
Maintenance

Reclassify Natural to Functional

Reallocate Functional Accounts
Evaluate Profitability of Profit
Centers

Cost Analysis Helps Track Down the

Loser

Spreading Natural Accounts to

Functional Accounts

Allocating Functional Costs to

Customers

A More Detailed View of Costs

Profitability of Individual Customers

and Whole Company

Enabling Marketing Strategy

with Information System
IT aids marketing strategy
planning
Customer information must
be secure
IT capacity must align with
marketing strategy
Enterprise resource planning
systems tie the firm together

People Put Plans into Actions

People are important resouce
New strategy usually require
people change
Communication helps
promote change
Rapid growth strains human
resources
Allow time for training and
other changes

People Put Plans into Actions

Each change may result in
several others
Plan time for changes from
the outset
Cutback need human
resouces plans
Investing in employees
lowers costs
Marketing pumps life into an
organization