CIMA E1 Syllabus E2. Marketing - Finance function and marketing - Notes ^{1 / 5}

It interacts with marketing in the following ways:

1. Budgeting - Finance will discuss the likely sales volume of each product with the sales and marketing, in order to produce the sales budget.

2. Advertising - Finance will help sales and marketing in setting a budget, and in monitoring whether it is cost effective. For example, they could help in measuring new business generated as a result of different advertising campaigns.

3. Pricing - Finance will have input into the price that is charged. Often products are priced at cost plus a percentage. Even if sales and marketing determine the price based on market forces they need to consult with finance to ensure that costs are covered.

4. Market share - Finance can provide marketing with information on sales volumes for each product, to help the marketing department in determining market share.

5. KPIs - Finance will establish and monitor the KPIs for the sales and marketing function.