Transcript Basic Marketing, 13th edition

Chapter 20:
Managing Marketing’s
Link with Other
Functional Areas
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Chapter 20 Objectives
When you finish this chapter, you should
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.
20-2
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.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
The Finance Function: Key Concepts
Capital
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Working Capital
Sources of Capital
Debt Financing
Cash Flow Statement
20-3
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
The Production Function: Key Concepts
Production Capacity
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Excess Capacity
Shared
Distribution
Virtual Corporation
Mass Customization
20-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
The Accounting Function
Natural
Accounts
Functional
Accounts
Adapt
Accounting
Data
Marketing Cost
Analysis and Interpretation
20-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Functional Cost Account Allocations
Functional Cost Account Allocations
Sales calls
Billing
Packaging units
costs
$1K/100calls
$424/34 orders
= $10.00/call
= $12.50/order
$2,312/1,360 units
Advertising
$425/10 units of C
= $ 1.70/unit or
$ 1.70/Product A
$ 5.10/Product B
$10.20/Product C
= $42.50/unit of C
Functional
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 20-4
20-6
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
The Human Resources Function
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20-7
People are a Resource
New Strategies
Need New People
Communication
Rapid Growth
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Key Terms
Capital
Working Capital
Debt Financing
Cash Flow Statement
Production Capacity
Virtual Corporation
Mass Customization
Task Transfer
Natural Accounts
Functional Accounts
20-8
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill