mktg fin pillais

8/8/2019 Mktg Fin Pillais

http://slidepdf.com/reader/full/mktg-fin-pillais 1/20



Integrated Business System for information management

Marketing System

Materials System

Finance SystemProduction & Stock System

HRD System

?

?

?

?

?

???

M arketing Finance

M arketing Finance Is also dependent on other systems action performances



a) Decide sources of fundsb) Identify sources available

c) Identify sourcing costs

----------------------------------------------

d) Estimate OutFlow and e) applications of Funds

f) Identify application costs

M arketing Finance

Finance or Financing



M arketing Finance

Sourcing and Applications of financeresources depend on requirements for the growth of the organisation.

Sourcing and Applications of financeresources depend on requirements for the growth of the organisation.

Hence«..What are the Costs or

What are the expenses

Return-On-Investments are positive balancing onthe value of resources deployed to the profitsgenerated and the growth.

Return-On-Investments are positive balancing onthe value of resources deployed to the profitsgenerated and the growth.

Returns can be direct or indirect /

Tangible or Intangible

Returns can be direct or indirect /

Tangible or Intangible

Costs or Expenses are associated by activitiesinitiated and its quantum

Understanding activities, costs/expenses can be

allocated/apportioned



M arketingactivities

Understand the Product to promote

Execute SalesOrder &

Distribute

Co-ordinateProduction /

Inventory

Get SalesOrders

Identify Sales personnel

Identify clientsGet

Collections

M arketing Finance

Product Promotion

M arket Intelligence

M arketing Stragegy

Completing Sales



Understand the Product to promote

Execute SalesOrder &

Distribute

Co-ordinateProduction /

Inventory

Get SalesOrders

Identify Sales personnel

Identify clientsGet

Collections

M arketing Finance

What are organisationsM

arketing costs ³associated´ with

Research

Costs

Human

Resources

Costs

(above Costs

associated

with time)

Product

³manuf / make

avaialable´

costs

Admin Costs

(stationery,

communicate ,

etc)

Research

Costs

Human

Resources

Costs

(above Costs

associated

with time)

Communicate /

correspond /

admin costs

Recruitment

Costs

Salary/wages/I

ncentives

Costs

Traveling

Costs

Other admin

costs

Salesperson

costs

Traveling

Costs

Communicate

Costs

Other admin

costs

Manpower

Costs

Production

Costs

Warehousing

Costs

Inventory

carrying costs

Staff Costs

Freight Costs

Delivery

charges

Misc costs

Staff Costs

Co-ordination

Costs

Cost-of-

interest



Organisations M arketing costs can beFixed

Variable

Product Costing

³ M anuf´ Costs Distribution costs Overhead costs M ark-up

Investments in M arketing System / Services

Provide financial costs resources required for

M arketing / Sales of Product / Services

By Internal Sources

By External Sources

By Effective Human resources

By competative products/services

M arketing Finance



Provide financial resources required for M arketing / Sales of Product / ServicesProvide financial resources required for M arketing / Sales of Product / Services

By Internal SourcesBy Internal Sources

By Outstanding CollectionsBy Outstanding Collections

Analysis

Clientwise paymentsClientwise payments Interest receivableInterest receivable Stakeholders fundsStakeholders funds

M arketing Finance





Sales ReceivablesSales Receivables

M arketing Finance

Client wiseClient wise Product wiseProduct wise Territory wiseTerritory wise Other Query Other Query

Assists in Costs allocation(Investments)

Identify R.O.I





Sales ReceivablesSales Receivables

M arketing Finance

Client wiseClient wise Product wiseProduct wise Territory wiseTerritory wise Other Query Other Query

Returns in Costs allocated (Investments)

Loyalty and CRM

Loyalty and CRM

Product development & positioning

Product development & positioning

Creating value and ³ownership´ Creating value and ³ownership´

R.O.I



M arketing Finance Finances M arketing Revenue M arketing

Local Sales Export Sales Finances M arketing

Sales Value(Invoicing) Bank Credit

Collections Internal Sources

Inventory of SalesProduct

Financial InstitutionSourcing

Order fromOverseasbuyer

Bank Credit

Payments recd Internal

Sources

Drawback claimInternal Sources

Goodwill and Patents LicensesM any others fromother system



Depends on

Product ³value´

Customer acceptance

Selling competence

Forecasting and Trend analysis

M arketing Finance



Applications ApplicationsSourcesSources

M arketing Finance

M arketing SystemM arketing System

Local M arketing

Direct Sales

Finances

Activities

Export M arketing

Trade Channel Sales

Product CostingProduct Costing Product PricingProduct Pricing Leader Pricing

(Govt Policies)

ReturnsReturns Recovery Recovery

Local Export Local Export

Local InvoicesLocal Invoices

Export InvoicesExport Invoices

INRcollections

Xchg convert collections

M ark-updecisions

AdvancePayments

AdvancePayments

Export credit Export credit

Drawback claimDrawback claim

Duty refund Duty refund

Importsagainst

Exports

Importsagainst

Exports

CST

IncTx

Excise

M odvat

ReversibleProcesses /

RequirementsSources Applications

Finances



M

arketing FinanceM

arketing Finance

Sales StatisticsSales Statistics

M arket ResearchM arket Research

M arket Intelligence

³ M

arketing´ Forecasting

M arketing BudgetingM arketing Budgeting

Scientific Forecasting

Probability

Theory

M arketing models attempt to describe or predict behaviour.Usually include a randomelement to allow for imperfect knowledge



Sales StatisticsSales Statistics M arket ResearchM arket Research M arket IntelligenceM arket Intelligence

³ M arketing´ Forecasting

M arketing PlanningM arketing Planning

Preparing M arketingInfrastructure

Achievement

Local Direct Sales

Export Tender

Distribution

Warehousing

In-House Exter nal

Despatch

ProcessesProcesses

Product Sizing Product pricing Supply chain Payment M ode

Payment type

Payment recieve

ProbabilityTheory

Discounted Cash

Flow

M arketing FinanceM arketing Finance



Tender

Product pricing


Local Direct Sales Export

Processes

Tender is invited in two parts i.e. (1) Technical bid and (2) Financial bid. The tender form for Technical bid prescribed in Annexure-I and the tender form for the financial bid in pro form prescribed in Annexure-II complete in all respects should be submitted at the«««« in two separate sealed covers

addressed to the«««««««««««««

Buying Tender applications form from «.(Tenderer)Buying Tender applications form from «.(Tenderer)

Quoting for Tender Quoting for Tender



Sales StatisticsSales Statistics M arket ResearchM arket Research M arket IntelligenceM arket Intelligence

³ M arketing´ Forecasting

M arketing PlanningM arketing Planning

Preparing M arketingInfrastructure

Achievement

Local Direct Sales

Export Tender

Distribution

Warehousing

In-House Exter nal

Despatch

ProcessesProcesses

Product Sizing Product pricing Supply chain Payment M ode

Payment type

Payment recieve

ProbabilityTheory

Discounted Cash

Flow




Payment recieve

Sales Achievement

Local Direct Sales

Export Tender

Product pricing

Cost of M anufacture / services

M ark-up+

Include Discounts / Benefits / Returns

Based alsoon Volume production

Discounted CashFlow

Discounting is a financial mechanism in which a debtor obtains the right todelay payments to a creditor, for a defined period of time, in exchange for acharge or fee.Essentially, the party that owes money in the present purchasesthe right to delay the payment until some future date.The discount, or charge, issimply the difference between the original amount owed in the present and theamount that has to be paid in the future to settle the debt.

The discount is usually associated with a discount rate, which is also called thediscount yieldThe discount yield is simply the proportional share of the initial amount owed (initial liability) that must be paid to delay payment for 1 year.Discount Yield = "Charge" to Delay Payment for 1 year / Debt Liability It is also the rate at which the amount owed must rise to delay payment for 1year.

If we consider the value of the original payment presently due to be $P, and thedebtor wants to delay the payment for t years, then an r% M arket Rate of Return on a similar Investment Assets means the "Future Value" of $P is $P * (1 + r%)t and the "Discount" would be calculated asDiscount = $P * (1+r%)t - $P where r% is also the "Discount Yield".If $F is a payment that will be made t years in the future, then the "Present

Value" of this Payment, also called the "Discounted Value" of the payment, is$P = $F / (1+r%)t .

Discounted CashFlow

mktg fin pillais

Documents