1. Understand why turning a marketing plan into a profitable business requires money, information, people, and a way to get or produce goods and services.
2. Understand the ways that marketing strategy decisions may need to be adjusted in light of available financing.
3. Understand how a firm can implement and expand a marketing plan using internally generated cash flow.
4. Understand how different aspects of production capacity and flexibility should be coordinated with marketing strategy planning.
Understand the ways that the location and cost of production affect marketing strategy planning.
6. Know how marketing managers and accountants can work together to improve analysis of the costs and profitability of specific products and customers.
7. Know some of the human resource issues that a marketer should consider when planning a strategy and implementing a plan.
8. Understand the important new terms.
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Chapter 20: Managing Marketing’s Link with OtherFunctional AreasWhen you finish this chapter, you should20-2Chapter 20 Objectives 1. Understand why turning a marketing plan into a profitable business requires money, information, people, and a way to get or produce goods and services.2. Understand the ways that marketing strategy decisions may need to be adjusted in light of available financing. 3. Understand how a firm can implement and expand a marketing plan using internally generated cash flow. 4. Understand how different aspects of production capacity and flexibility should be coordinated with marketing strategy planning.5. Understand the ways that the location and cost of production affect marketing strategy planning.6. Know how marketing managers and accountants can work together to improve analysis of the costs and profitability of specific products and customers. 7. Know some of the human resource issues that a marketer should consider when planning a strategy and implementing a plan.8. Understand the important new terms.??????????????????????????????Cash Flow StatementDebt FinancingSources of CapitalWorking CapitalCapitalThe Finance Function: Key Concepts20-3The Production Function: Key Concepts20-4??????????????????????????????Mass CustomizationVirtual CorporationSharedDistributionExcess CapacityProduction CapacityThe Accounting Function20-5Marketing CostAnalysis and InterpretationNaturalAccountsFunctionalAccountsAdaptAccountingDataFunctional allocation breaks down costs by activity. Remember, though, this breakdown is seldom the whole story. Market managers still need to interpret this information to assess performance in a meaningful way.Exhibit 20-4Functional Cost Account AllocationsSales calls $1K/100calls = $10.00/callBilling $424/34 orders = $12.50/orderPackaging units costs $2,312/1,360 units = $ 1.70/unit or $ 1.70/Product A $ 5.10/Product B $10.20/Product CAdvertising $425/10 units of C = $42.50/unit of C20-6Functional Cost Account AllocationsPeople are a ResourceNew StrategiesNeed New PeopleCommunicationRapid Growth???????????????????????????????????20-7The Human Resources FunctionCapitalWorking CapitalDebt FinancingCash Flow StatementProduction CapacityVirtual CorporationMass CustomizationTask TransferNatural AccountsFunctional AccountsKey Terms20-8
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