Marketing affects business in several ways including in areas of planning and management. Some aspects of marketing that are crucial in organizational operations include budget implementation, strategies, and tactics. Budgeting is an important aspect of marketing and the most important tool for guiding a business. A budget provides essential information for operating within its means by estimating expenditure and anticipating revenues ( Lamberti & Noci, 2010). As a result, a budget is a foundational framework for business that details past performance and future forecasting. An accurate budget enables a business to accurately set goals and track where they are financial.
Strategy and tactics are other important aspects of marketing that are more sophisticated and powerful than plain old planning. The strategy paints a broad picture of how a business will compete in the marketplace while tactics show the direction through which a business will take. Tactics refer to how you implement your strategy to effect change in the organization. Therefore, while most people ask for your strategy in marketing, they expect people to report the tactics and budgets as well. Managers have to define a strategic direction during product development and make strategic decisions whenever product cycles mature and sales decline,
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In essence, several aspects of marketing such as budgeting and strategic decisions serve as performance indicators of the business strategy. The two work together simultaneously in the sense that you need to have a budget, then develop a marketing strategy that will help sell a product. The budget and strategy go hand in hand when speaking about marketing since it is not possible to perform any form of marketing without the two ( Lamberti & Noci, 2010) . As a result, there is a need to align the budget with a business strategy to enable the business to function smoothly. A disconnect between the budget and business strategy can result in poor budget and strategy implementation, which could spell doom for a business.
Financial forecasts are also aspects of strategic budgeting that are important in meeting business goals as part of strategic planning. The forecasts allow a business to predict the finances of a business and set out an effective strategy to achieve organizational goals. An article in Forbes Magazine by Rich Carroll explained how businesses can hold proper forecasting to achieve organizational success (Carroll, 2019). According to the author, accurate planning and proper forecasting are critical to businesses as it helps in budgeting and overall marketing plans. The forecasting can be used by businesses of all sizes to ensure they have enough gross margin.
However, some companies have been trapped in poor budget forecasting that affects their decision making. For example, budget planners tend to use the past pear’s performance to set the target for the next year, which is a mistake that affects proper budgeting for businesses. According to the article, accurate budget forecasting involves much more in-depth and intelligent planning that focuses on influencing future outcomes (Carroll, 2019). This means business should not forecast by predicting the future but influencing it based on current market conditions and changes in the market landscape. The ultimate measure for companies should be running the business efficiently using the latest tools and technology.
An honest budget forecasting in the company can help remove all inefficiencies and create a cost-effective organization. This can be done by challenging budget owners to assess their function and perform unbiased forecasts. Businesses need a long-term vision that ensures the budget aligns with organizational goals (Carroll, 2019). Without a solid budget forecast, a business can accidentally overspend on marketing costs. Some of the measures to a slid marketing budget include organizing financial information, determining where to spend marketing funds and assessing data to make appropriate changes.
The budget and the strategy are two crucial components of marketing that apply to supply chain management. This is because designing and building the right supply chain that promotes business strategies can be crucial in delivering more value to an organization. These marketing aspects apply to supply chain management to help understand how to budget and strategize in the market ( Lamberti & Noci, 2010) . Strategic decisions are required in supply chain management to determine the overall direction of a company’s supply chain. A supply chain has the best chance of helping a company reach its goals when managed at the operational, tactical and strategic levels. At the same time, budgeting is crucial in the success of the supply chain due to its role in the effective utilization of available resources. The use of strategic budgeting allows the management to control income and expenditure while evaluating the organization’s goals and policies.
References
Carroll, R. (2019, August 27). Council Post: Proper Forecasting: Question Everything . Forbes. https://www.forbes.com/sites/forbesfinancecouncil/2019/08/27/proper-forecasting-question-everything/#93e7feb55034
Lamberti, L., & Noci, G. (2010). Marketing strategy and marketing performance measurement system: Exploring the relationship. European Management Journal , 28 (2), 139-152.
