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How Do You Make Money?

Financial performance is about market and customer interface
– How effectively you deliver customer value – While controlling your cost to serve the customer

Today’s “new normal” requires Marketing & Finance work as one
– Since Marketing Programs impact the P&L, Balance Sheet & Cash Flow

Marketing also affects Return on Investment by impacting both the
– Margin and – Turnover – sides of the ROI Formula

SMART MARKETING

How Marketing Impacts Return On Investment
ROI

Margin

X

Turnover

Profit & Loss Statement • Pricing • Product Management • New Product Development • Customer Profitability

Balance Sheet, Cash Flow • Cash Conversion Cycle • Inventory • Account Receivable • Demand Forecasting

SMART MARKETING

How Smart Marketing Helps Make Money
By linking the Marketing Programs to the Financial Drivers So each Marketing Initiative achieves a greater ROI
Pricing Distribution Positioning Differentiation Development: New Product Market Smart Marketing
Marketing Programs $ Financial Drivers $

Sales Margins Cash Flow Inventory A/R DSO

SMART MARKETING