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Lecture Basic Marketing: A global-managerial approach: Chapter 20 - William D. Perreault, E. Jerome McCarthy

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After studying this chapter you will: Understand why turning a marketing plan into a profitable business requires money, information, people, and a way to get or produce goods and services; understand the ways that marketing strategy decisions may need to be adjusted in light of available financing; understand how a firm can implement and expand a marketing plan using internally generated cash flow;...

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Managing Marketing’s

Link with Other

Functional Areas

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Chapter 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 

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

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Cash Flow Statement

Debt Financing Sources of Capital Working Capital

Capital The Finance Function: Key Concepts

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The Production Function: Key Concepts

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Shared Distribution

Shared Distribution

Excess Capacity Production Capacity

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The Accounting Function

Marketing Cost Analysis and Interpretation

Natural Accounts

Functional Accounts

Adapt Accounting

Data

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Functional  allocation breaks  down costs by  activity.  

Remember,  though, this  breakdown is  seldom the whole  story.  Market  managers still  need to interpret  this information 

Functional Cost Account Allocations

Packaging units 

  $  1.70/Product A

$  5.10/Product B

Functional Cost Account Allocations

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People are a Resource

New Strategies Need New People

New Strategies Need New People

Communication

Rapid Growth

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The Human Resources Function

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Working Capital

Debt Financing

Cash Flow Statement

Production Capacity

Virtual Corporation

Mass Customization

Task Transfer

Natural Accounts

Functional Accounts

Key Terms

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