Key Business Functions: Marketing, Finance, and Operations

Posted on Dec 21, 2024 in Economy

Functional Areas in a Company

Marketing

Finance

Production or Operations

Human Resources

Marketing

Marketing activity includes the planning, organization, direction, and control of decisions about product lines, pricing, promotion, and servicing.

Stages of Product Development

  • Product or service essential for the benefit of the product itself, to solve problems that consumers buy in fact to purchase, such as shelter.
  • The real product is formed by all parts of the product, such as style, quality, packaging, features, brand, etc. Apparel products MAUI
  • The upgraded product is what can make a difference, known as ancillary services. Example service.

a) Logo

Created exclusively typography (letters) and no icon, that is the word functions as an image.
Example: Coca-Cola, Soprole, DuocUC, Falabella, Paris

b) Isotype

The image works without text.
Example:
The apple with a scarf…
Bottle is uncovered and glasses of champagne…
A house… Building materials.

c) Slogan

Is a feature known phrase Example: Happy Easter to all…

Distribution of the Product

  • Distribution channel is the set of companies and individuals who have property or are involved in the transfer of such property, on a good or service as it moves from producer to consumer or industrial user.
  • A distribution channel carries the goods from producers to consumers. Save the main gaps of time, space, and possession that separate goods and services of those who would use them.
  • Members of the distribution channel class as many roles:
  • a) Research
  • b) Promotion
  • c) Contact
  • d) Correspondence
  • e) Negotiating
  • f) Physical distribution
  • g) Funding
  • h) Risks

Promotion

Refers to the effective communication of the results of the marketing strategy to target markets. All that makes the company’s promotional potential.
Promotion is an active and explicit marketing communication, it illuminates the elements of marketing to increase the likelihood of consumers to buy and commit to a product.
Thus, promotion is defined as the function of marketing related to persuasive communication towards their target market, the components of the marketing program to facilitate the exchange between company and consumer, and help meet the objectives of both.

Sales promotions are short-term incentives to encourage the purchase or sale of a product or service.
Public relations involve the creation of good relationships with various publics a company, creating a good corporate image, management or denial of rumors, stories, or negative events.
Personal selling is oral presentation in a conversation with one or more potential buyers in order to make a sale.

The objectives of sales promotion are varied,

and that vendors could use for consumer promotions:
  • a) Increase product sales
  • b) Increase market share
  • c) To generate acceptance for a new product
  • d) Improved stock rotation
  • e) Create loyal customers
  • f) To give life to a dead product

Finance

Is the planning of financial resources for its implementation is the most optimal way.
Investigate funding sources for raising funds to the enterprise that needs them (suppliers, banks, sales).

Objectives of the Financial Function

  1. Plan for business growth, advance viewing your requirements both tactically and strategically.
  2. Capturing the resources necessary for the proper conduct of the business.
  3. Allocate these resources according to plans and projects.
  4. To promote the optimal use of resources.
  5. Reduce the maximum risk or the uncertainty of the investment.

1. Liquidity

Which would provide funds to the company to meet its financial commitments (payment to suppliers, banks, IRS, etc.), avoiding insolvency. To do this, using tools such as financial analysis and cash budgeting or cash.
The financial analysis is a study of the solvency of the company, which is based on the calculation of rates or liquidity ratios, which are quantitative relationships between various accounts of the balance of the company, which periodically compares each other and with the indices comparable firms if known.
The cash budget is intended to predict future behavior of income and expenditure of money that the company will have month to month, week to week, and even day to day. This allows to anticipate potential cash shortfalls that occur at some time in anticipation of seeking funding covered let us

2. The yield

Which is to obtain maximum profit or return on the resources invested in the company. It uses the economic analysis, breakeven analysis, operational budgets, and evaluation of projects or capital budget.
The operational budget is an estimate of sales, costs, and utility for a period, parameters that define the profitability of that period, seek to measure performance, the difference between sales and costs that arise during the period.
The breakeven analysis is a tool to determine the minimum amount of production that is necessary to sell to in order not to incur losses.

Investment Projects

This is an area responsible for supporting all projects that generate other functions such as launching a new product
Cost Is the activity responsible for administering the system of production costs.
Inventories Vital function for productive enterprises

Internal Audit and Operational

This activity is responsible to determine the adequacy and adherence to internal control standards.