Several business area functions must be managed every day by business people. But 2 business functions are always “fighting” and disagree, namely marketing vs finance. Therefore, there are several things to solve the problem.
1. Profitable Marketing or Financial?
Although the average salary of a financial person is still smaller than the salary of a marketing person, the growth rate from year to year shows higher growth. This is because digital marketing trends have been able to reduce the number of sales / marketing needs.
On the other hand, companies that are only strong in managing finance alone, without regard to marketing, then the development of innovation compared to competitors will inevitably lag.
In terms of job growth, finance is superior to marketing. However, the income of a marketing employee will be higher than that of an employee in the financial department.
2. Same Responsibility
Marketing and Finance have 2 very different nature. If marketing people are more towards art/artistic, then finance people are more toward scientific/scientific. So both of them cannot agree.
For example: marketing people ask for additional promotional budget and say there will be additional turnover, but finance people ask for exact figures. How much turnover will be added. Herein lies the failure of marketing people because they are can not to convince colleagues who proficient at number problems.
3. Different Way of Thinking
The language used by the two of them is also very different. If marketing people (especially digital marketers) prefer metrics related to website visitors, number of engagements, and sales conversions.
Conversely, finance people have metrics related to cost of production, profit margins, and net income. Even so, there is a meeting point between the two, Revenue and Budget. This meeting point can be a strategic approach to “reconcile” the function of them so that their work is more optimal.
4. Conflicts Occur When Dealing With Customers
In dealing with customers, too. Marketing people expect that all product stock is available, so that when every customer orders, goods can be sent quickly and become cash. Conversely, finance people want to keep production costs low, and inventory is not overstocked, because this is dead money.
Therefore, in every company, PPIC (production, planning, inventory, control) roles are needed as mediators between marketing and finance functions, so that companies do JIT (just in time) and Lean Manufacturing as much as possible.
5. The Role of Marketing Staff Analyst
Companies that already have PPIC staff specifically for sales and production forecasting have at least been able to reduce the “contention”. That exists between marketing people and finance people.
Especially if the company also has a Marketing Analyst staff, whose focus is to optimize every rupiah spent by finance people for marketing activities, so that the company’s targets can be achieved as effectively and efficiently as possible.
One of the roles of the Marketing Analyst will be to calculate the value of ROMI (return on marketing investment) for each increase in turnover obtained, compared to the costs incurred for adding the turnover. A healthy ROMI value is 10-20.
For example, the average turnover now is 100 million rupiah per month. Marketing campaign costs incurred in the amount of 1 million rupiah. After many months, the average turnover per month becomes 110 million.
Then the calculation of ROMI = (110-100 million) / 1 million = 10. The problem is, the calculation of ROMI can only be useful to measure a thing that has happen. An approach is need to do Marketing Optimization so that business people do not get the wrong step.
Those are some points regarding marketing vs. finance. Both are non-synergistic components, but both have the same goal. Namely income and profits.