The trick to balancing finance and marketing

Savvy marketers know you can’t just create a marketing campaign, set it on repeat, and forget about it.

Marketing needs constant tweaking, which means its budget does, too. Though you should have a set amount of money set aside for marketing, be aware that some months that much will be enough, and other months it will need some supplementing. It all depends on the consumers, the condition of the market, and what your competitors are doing.

Moderation in everything

Of course, moderation is necessary in everything, so allowing your budget to fluctuate radically each month or week isn’t the best policy either. David Collins, a columnist and Group Marketing Director at Great National Hotels and Resorts said good marketing requires a balance between creativity and financial awareness. He’s seen finance battles over everything from return on investment to methods of success measurement to haggling over how the budget should be spent. It seems disagreement is unavoidable.

Collins explained, “Most marketing and finance departments rarely see eye to eye. Largely this is due to the fact that the basic instinct in marketing folk is to grow and develop while for your average ‘common or garden’ finance person, it’s control, curtailment, and consolidation.”

Avoid tension between departments

The tension this creates can be distracting, especially when it creates conflict between departments. However, it’s important to remember that neither side is more important than the other; they both need to provide input for a marketing campaign to be successful. This can only be achieved when both sides are transparent and practical with their discussions and expectations. Marketers and financial managers must have mutual respect and use consistent methods of measuring campaign success. Only then will they be able to work together harmoniously.

Both sides are crucial for success

“The reality is that both [departments] are critical to the success of the business,” Collins went on. “marketing insofar as it drives product development, brand positioning, channel distribution and customer retention, and finance insofar as it manages the monetary ‘where-with-all’ to enable this to happen: from raising funds to budgeting cash-flows to delivering margins.”

Source: Hotel Industry

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