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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;...

Chapter 20:    Managing Marketing’s Link with Other Functional Areas For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 20 Objectives When you finish this chapter, you should 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.  Understand how different aspects of  production capacity and flexibility  should be coordinated with  marketing strategy planning 20­2 Understand the ways that the  location and cost of production affect  marketing strategy planning Know how marketing managers and  accountants can work together to  improve analysis of the costs and  profitability of specific products and  customers.  Know some of the human resource  issues that a marketer should  consider when planning a strategy  and implementing a plan Understand the important new terms For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Finance Function: Key Concepts ?????? ?????? ?????? ?????? ?????? 20­3 Capital Capital Working Working Capital Capital Sources Sources of of Capital Capital Debt Debt Financing Financing Cash Cash Flow Flow Statement Statement For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Production Function: Key Concepts ?????? ?????? ?????? ?????? ?????? 20­4 Production Production Capacity Capacity Excess Excess Capacity Capacity Shared Shared Distribution Distribution Virtual Virtual Corporation Corporation Mass Mass Customization Customization For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Accounting Function Natural Accounts Functional Accounts Adapt Accounting Data Marketing Cost Analysis and Interpretation 20­5 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Functional Cost Account Allocations Functional Cost Account Allocations Sales calls  Billing  Packaging units      costs    Advertising Exhibit 20­4 20­6 $1K/100calls  $424/34 orders  = $10.00/call =  $12.50/order $2,312/1,360 units  = $  1.70/unit or   $  1.70/Product A $  5.10/Product B $10.20/Product C =  $42.50/unit of C $425/10 units of C  Functional  allocation breaks  down costs by  activity.   Remember,  though, this  breakdown is  seldom the whole  story.  Market  managers still  need to interpret  this information  to assess  performance in a  meaningful way For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Human Resources Function ??????? ??????? ??????? ??????? ??????? 20­7 People People are are aa Resource Resource New New Strategies Strategies Need Need New New People People Communication Communication Rapid Rapid Growth Growth For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Capital Working Capital Debt Financing Cash Flow Statement Production Capacity Virtual Corporation Mass Customization Task Transfer Natural Accounts Functional Accounts 20­8 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill ... Function Natural Accounts Functional Accounts Adapt Accounting Data Marketing Cost Analysis and Interpretation 20 5 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc.,... Irwin/McGraw-Hill Key Terms Capital Working Capital Debt Financing Cash Flow Statement Production Capacity Virtual Corporation Mass Customization Task Transfer Natural Accounts Functional Accounts 20 8... Capital Capital Sources Sources of of Capital Capital Debt Debt Financing Financing Cash Cash Flow Flow Statement Statement For use only with Perreault and McCarthy texts © The McGraw-Hill Companies,

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