Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

20. Managing Marketing’s
    Link with Other Functional
    Areas

Text © The McGraw−Hill

Companies, 2002

580 Chapter 20

Our emphasis will be on new efforts. When a new strategy involves only minor

changes to a plan that the firm is already implementing, the specialists usually have

a pretty good idea of how their activities link to other areas. However, when a

potential strategy involves a more significant change—like the introduction of a

totally new product idea—understanding the links between the different functional

areas is usually much more critical.

Cross-functional
challenges are greatest
with new efforts

Chief financial officer
handles money matters

Opportunities compete
for capital and budgets

The Finance Function: Money to Implement Marketing Plans

Bright marketing ideas for new ways to satisfy customer needs don’t go very far

if there isn’t enough money to put a plan into operation. Finding and allocating

capital—the money invested in a firm—is usually handled by a firm’s chief finan-

cial officer. Entrepreneurs and others who own their own companies may handle

this job themselves. In most firms, however, there is a separate financial manager

who works with the chief executive to make major finance decisions.

A firm’s marketing manager and financial manager must work together to ensure

that the firm can successfully implement its marketing plans with the money that

is or will be available. Further, a successful strategy should ultimately generate profit.

And the financial manager needs to know how much money to expect and when

to expect it to be able to plan for how it will be used.

Within an organization, different possible opportunities compete for capital.

There’s usually not enough money to do everything, so strategies that are incon-

sistent with the firm’s financial objectives and resources are not likely to be

funded. It’s often best for the marketing manager to use relevant financial mea-

sures as quantitative screening criteria when evaluating various alternatives in the

first place.

Marketing plans that arefunded usually must work within a budget constraint.

Ideally, the marketing manager should have some inputs on what that budget is—

to get the marketing tasks done. Further, some strategy decisions may need to be

adjusted, either in the short or long run, to work within the available budget. For

example, a marketing manager might prefer to have control over the selling effort

for a new product by hiring new people for a separate sales force. However, if there

isn’t enough money available for salesperson salaries, then the best alternative might

be to start with manufacturers’ agents. They work for a commission and aren’t paid

until after they generate a sale and some sales revenue. Then after the market

develops and the plan becomes profitable, the firm might expand its own sales force.

When evaluating new
opportunities, Unilever brings
together a team of managers
with experience around the world
to be certain that marketing plans
that the firm implements will give
it a competitive advantage and
earn a return that will be
attractive to investors.