Improve the Relationship Between Marketing and Finance in 5 Ways

Marketing and finance can have a very hard relationship even when these are departments in the same company pursuing the same goals. While finance people are mostly concerned with statements for cash flow, marketers are primarily creative individuals. However, striking the best balance between these two kinds of people is of high importance.

Marketing people are no less important to a company than finance people. While they use different sets of skills, these two types can cooperate and work as a team when conditions are right.

Marketing costs are constantly rising for large companies and some businesses will spend as much as USD 12 billion on mobile advertisements alone in 2015. Marketing budgets are a necessity even for smaller companies like, for example, Blue Hat Marketing, for running a proper campaign on their services.

Here are some tips on how finance and marketing specialists can work together to ensure funds are well invested:

1. Lines of communication should be kept open.

A widely adopted view is that marketing always asks for more, while finance in contrast is looking to reduce the budget. It is often the case that both sides are unwilling to discuss their opposite numbers and come to an agreement why money is needed.

An organization must ensure that both sides have regular sessions where they can discuss the campaigns at hand and how much of an investment is needed. The finance people must also explain why there is a certain limit to funding. Interdepartmental meetings are important for a consensus.

2. Share stories of success with the finance people.

When they stumble upon a high expenditure and they don’t see the reason behind it, finance would want to cut it. And who could blame them – this is what they are paid for after all. However, if marketing decide to explain why a particular expense is necessary, finance may reconsider their decision to prune that expenditure.

Brand managers may have to deal with a lot of factors, but they should always inform finance on why certain expenditure is necessary.

3. Fiscal responsibility is a necessity.

This is true not only in times of budget crises but is always an important consideration at any particular time. Marketing specialists should be proactive and consult with finance on how to reduce unnecessary expenses, non-essential to the work of an organization. Finance will definitely approve of that and see you as dedicated to keeping an optimized marketing budget.

4. Think the way finance people in your organization do.

Do not approach finance with a unclear proposal or with a project you cannot handle. They don’t like been asked for a few hundred thousand dollars more. Know your project in detail and be ready to present figures for inspection.

5. Do not attempt to hide past mistakes.

If you are unable to meet your numbers, discuss it with finance as soon as you are able. Postponing the bad news won’t help either side. Finance will appreciate your information. When money is concerned, being honest is the best policy.