Difference Between Finance vs Marketing
The following article provides an outline for finance vs marketing. Finance and Marketing are two important fields for the business to function well. Finance describes activities that involve money management, investment, saving, funding, debt, credit, etc. Marketing is the process that helps in seeking customer interest in the products produced or services rendered.
The Finance department in the company helps to channelize the revenue/cash flow into various business activities and monitors the wealth and progress of the company. The Marketing department, on the other hand, supports the business in generating more revenue through marketing ideas and practices.In addition, it helps to reach the products/services to the customers.
Finance
Finance is a term that involves managing money and funds, learning about money and investment. Finance also deals with planning and budgeting the cash flow, expenses, and income. The major element is managing the capital, whether personal finance, corporate finance, or public finance.
Finance is majorly divided into three main categories:
Personal Finance: It involves analyzing the financial position and financial planning of any individual. It is planning for the future period. Personal finance is related to one individual considering the financial situation. So planning involves consideration of an individual’s earning, savings, goals, lifestyle requirements, etc.
Corporate Finance: It relates to financial activities done in corporates like raising funds, bond issues, raising capital, stock issues, etc. For Capital markets and securities-related, the corporates may route through investment banks. In addition, corporate financial planning, cash flow budgeting, Capital budgeting, etc., comes under corporate finance.
Public Finance: It involves public taxes, planned spending for the public, budgeting for the expenses and resources, etc. Managing money for operational activities of the government, planning for social programs for the people, etc.
In business, finance predominantly deals with both sourcing and utilization of funds. The funds are utilized in business operations to maximize revenue and returns. Funds are always used for short-term and long-term business goals. They manage both working capital needs, which are short-term, and also utilize funds for long-term business projects.
Marketing
Marketing is the process of promoting products or services. It starts from planning for pricing the products/services, promoting it, and the distribution channels. The ultimate goal is to attract customers and launch the products and services in the market. For any business to be successful, marketing is the key; it plays a critical role in developing public awareness, customer attention and helps to build customer relationships and trust.
Marketing contributes to increased business transactions, sales, and profitability. The key tools of marketing are communication and advertisement/promotions. It helps in easing the selling process; they understand the customer wants and needs and try to serve them basis that to capture the market and get customer satisfaction. They are completely customer-centric, and their goal is to win the support of customers for their products.
Head To Head Comparison Between Finance vs Marketing (Infographics)
Below is the top Comparison between Finance vs Marketing:
Key Differences Between Finance vs Marketing
The key difference between finance and marketing is their contribution to business operations. Both the department adds value to the business in different ways.
The finance department supports the business by managing the funds and working capital. They help in organizing the cash flow and budgeting for the income and expenses of the business. They keep a close track of all financial metrics and support them in making the right business decisions that involve financial management.
The marketing department supports the business by reaching out to customers by the right advertisement, promotions, and marketing strategy. In addition, they help maximize revenue and expand business by taking the company’s products/services to customers.
Finance vs Marketing Comparison Table
Below is the 7 topmost comparison between Finance vs Marketing:
Particulars
Finance
Marketing
Meaning
The finance department helps the business to improve the revenue metrics and supports maximizing the growth and wealth of the company.
The marketing department supports revenue-generating activities. They do the right promotion activities to reach the product/services to the customers.
Educational qualification
To enter the finance department, the following educational qualifications are considered like Bachelor of commerce, finance, economics, professional qualification like CA, CFA, CWA, MBA in finance, etc.
To enter the Marketing department, MBA in marketing is preferred. The more important in marketing is understanding the business model and learning the right technics of marketing.
Technical Skills
Financial Analysis, Financial Modeling, Valuations, Budgeting, Planning, Forecasting, Risk Management, Excel skills, Analytical Skills, etc.
Branding, Market Research, Understanding of demand and supply, Market Promotions, Advertisement, Presentation Skills, Communication Skills, Client management, etc.
Contribution in business
Sourcing funds for business, managing the working capital and cash flows, borrowing and investment management, etc.
Project valuation, Budgeting, and Planning, MIS reporting, etc.
Market Research, Sales promotion, marketing, planning of logistics, client feedback and reviews, understanding the market and customer wants.
Dependency
The finance department is important for any business, as the marketing department and other functions can support expanding business, but to manage the financial position and to drive the revenue and profitability, finance is much needed.
The marketing department helps in taking the products/services to the customers and tries to expand the business and contribute directly to revenue and profitability. Without a marketing team, businesses will not be able to scale up.
Professional choices
People who choose finance as a career option have a wide variety of options like Financial budgeting and planning, Investment banking, Corporate finance, Controllership, business partnering, Accounting, Equity research, Risk management, etc.
Marketing is a focused area; it keeps changing the basis of the business. In this digital era, the marketing function has a big role to play and has wide options to explore. Marketing experts also work in Data science, market strategy, Client facing roles, etc.
Future of the roles
Finance has always had its value, and it is one of the high-paying jobs. With the coming of automation, some jobs could become redundant, but the value-added roles like analyst, controllership, business partnering, etc., keep growing at a large scale as the economy grows.
Marketing keeps growing at a faster pace considering the current ecosystem and lifestyle. With more digitalization happening across the world, the right marketing will help the business to sustain and grow. It is now emerging as one of the high-paying jobs with more opportunities coming in.
Conclusion
Finance and Marketing are two different fields, but both are much needed for the better functioning of the business. Both the departments are key to the business operations and have a dependency on each other. Like for marketing spends, the marketing department is dependent on the finance department for funds allocation and budgeting for expenses. In the same way, the finance department is dependent on the marketing department as they generate revenue and expand the business operations. Therefore, both the functions are interdependent on each other.
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