Can Finance and Marketing have Identical Climax for an Organisation?

• admin
• May 12, 2020

You must know that organizations have a different department for every aspect of its working, from the predominant ones to the tiny and almost insignificant ones.

Consider a Business Processing Outsourcing business;

• It has a calling and receiving customer grievance calls as its primary operation, so this is a predominant department.
• The people in the department, which maintain the log sheets and customer data at the backend, can be considered its secondary focus, so it is less significant.

All of the departments work towards the betterment of the organization; however, their means and ends are vastly different.

Still, there are two areas, which have more than similar culmination for a business. These are the Finance Department and the Marketing Team. Despite the functions being slightly different, these two bring identical results.

Let us understand how.

Decoding Finance

When people hear the term finance, they often mistake it for loans. This is because; phrases like house finance and car finance are pretty popular. The financer is a loan provider.

Although loan acquisition is a prominent part of the finance and its definition, it is not the entirety of its meaning. Finance often synonymies money matters.

The Finance Department ensures that;

• an organization is earning enough from its operations;
• an organization has the adequate amount of cash flow to all its department;
• an organization is managing the cash flow fruitfully, without wasting it;
• and an organization would never stand a chance to lose money with more expenses than income.

From all of these, you can get a fair idea that finance means money management. Prudent financial management skills are seldom accentuated; when they are, it is by a financial advisor. And that is a sad part.

A Finance Department is the backbone that holds up an organization because it materializes and manages the most imperative aspect for business; its profits.

Its culmination is when these profits are at the level envisioned by the business owner. In a more straightforward sense, finance helps a business is getting more rewards.

Comprehending Marketing

Marketing is a department that uses the most creative and out-of-the-box ideas and techniques for the welfare of a business. From a hole-in-the-wall business to a multination corporation, every organization uses this tool to get more successful.

Marketing is associated with four significant aspects of the business. These are;

• Product; this includes everything related to the product. The way it is designed, the material to be used, the production process and even the packaging.
• Place; the place has two meanings, one is the place of production, it should be near to the markets and close to the raw material as well. And secondly, the place of selling. Should the product be sold online or the market is one question that is answered by it.
• Price; marketing is responsible for setting a price that gives the company a competitive advantage over the competitors. At the same time gives enough margin to make significant profits.
• Promotion; this promotes the product on all platforms that it can reach so that the consumer knows that it is on the market, and it needs to be bought. Advertisements are synonymous to promotions.

All of these are done to augment the sales figure of the organization. They make it drown in its never-ending revenue and the consequent profits.

Correlating Finance with Marketing

Finance and marketing have more than a few similarities, as I am sure you would have guessed by reading till here.

I do not want to leave them unsaid and open to interpretation, so here they are.

• Both finance and marketing aim to bring more revenue for the organization, its owner and its employees.
• Finance focuses on profits, and so does marketing. The former does this task by cost-cutting and being frugal. The latter does this by bringing an influx of customers.
• Marketing makes the presence of a company known, and finance ensures that the appearance is likable and backed with funds.

A New Term

Their relationship is so intertwined that there is an actual term called “finance marketing.” This is used when companies or organizations try to promote their financial products through marketing.

Small loan companies in Belgium follow this concept religiously. They have flyers, billboards, newspapers and even the radio publishing and talking about their loan instruments. I got my iPhone financed because of one of these ads.

Winding Up

In the end, all I want to say is that the relationship between finance and marketing is like that of fraternal twins. They do not have the same looks, but their DNA, their genes and birthdays are the same. Parents love them equally, and their love for parents is also the same.

The organization is the parent, whom finance and marketing love to the point of keeping it operational and profiting for as long as possible.