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uarketing Finance Is also dependent on other systems action performances


uarketing Finance

O O  

a) Decide sources of funds


b) Identify sources available
c) Identify sourcing costs
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d) Estimate OutFlow and
e) applications of Funds
f) Identify application costs
Sourcing and Applications of finance
resources depend on requirements for
the growth of the organisation.
Return-On-Investments are positive balancing on
the value of resources deployed to the profits
generated and the growth.

Returns can be direct or indirect /


Tangible or Intangible
uarketing Finance

M   
 

 
  

  
    
    

         
  
  
uarketing
uarketing Finance
activities

Understand Co-ordinate Execute Sales


Identify Sales Get Sales Get
the Product Identify clients Production / Order &
personnel Orders Collections
to promote Inventory Distribute

Product Promotion
uarket Intelligence

uarketing Stragegy

Completing Sales
uarketing Finance

What are organisations uarketing costs ³associated´ with

Understand Co-ordinate Execute Sales


Identify Sales Get Sales Get
the Product Identify clients Production / Order &
personnel Orders Collections
to promote Inventory Distribute

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Fixed
Organisations uarketing costs can be
Variable

Product Costing

³uanuf´ Costs Distribution costs Overhead costs uark-up

By Internal Sources
Investments in uarketing System / Services
By External Sources
Provide financial costs resources required for
uarketing / Sales of Product / Services By Effective Human resources

By competative products/services

uarketing Finance
Provide financial resources required for
uarketing / Sales of Product / Services

By Internal Sources

By Outstanding Collections

Analysis

Clientwise payments Interest receivable Stakeholders funds

uarketing Finance
Provide financial resources required for
uarketing / Sales of Product / Services

By Outstanding Collections

Sales Receivables

Client wise Product wise Territory wise Other Query

Assists in Costs allocation


(Investments)

› 
›

uarketing Finance
Provide financial resources required for uarketing Finance
uarketing / Sales of Product / Services

By Outstanding Collections

Sales Receivables

Client wise Product wise Territory wise Other Query

Returns in Costs allocated


(Investments)
Loyalty and
CRu
Product Creating value and
development & ³ownership´
positioning


›
Finances
Revenue
uarketing Finance
uarketing

Local Sales Export Sales


Finances uarketing

Sales Value Order from


(Invoicing) Bank Credit Bank Credit Overseas
buyer

Collections Internal Internal Payments recd


Sources Sources

Financial
Inventory of Sales
Institution
Product Drawback claim
Sourcing Internal
Sources

uany others from u 


 Licenses
other system
d 

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uarketing Finance
uarketing Finance

CST
O 
Duty refund
IncTx
Reversible
Excise Export
Sources
Sources Applications Processes /
Requirements credit
uodvat
Drawback
uarketing System uark-up claim
decisions
Imports
Activities against
Exports

INR Xchg convert


collections collections

Local Export Advance


Invoices Invoices Payments
Local uarketing Export uarketing

Local Export Local Export

Direct Sales Trade Channel Sales


Returns Recovery

Product Costing Product Pricing


Leader Pricing
(Govt Policies)
Sales Statistics
uarket Intelligence ³uarketing´ Forecasting
uarket Research

Scientific
Forecasting

uarketing Budgeting
Probability

Theory

uarketing models attempt to describe or


predict behaviour.Usually include a random
element to allow for imperfect knowledge

uarketing Finance
Sales Statistics uarket Research uarket Intelligence

ProbabilityTheory
Local Direct
Export Tender
Sales

Processes
³uarketing´ Forecasting

Product Product Supply Payment


uarketing Planning Sizing pricing chain uode

Preparing uarketing Payment Payment


Infrastructure type recieve

Achievement
Distribution
Discounted Cash
Flow
Despatch Warehousing

In-House Exter nal

uarketing Finance
Local Direct
Export Tender
Sales

Tender is invited in two parts i.e. (1) Technical bid and (2) Financial
bid. The tender form for Technical bid prescribed in Annexure-I and the tender
Product
form for the financial bid in pro form prescribed in Annexure-II complete in all Processes Quoting for Tender
pricing
respects should be submitted at the«««« in two separate sealed covers
addressed to the«««««««««««««

Buying Tender applications form from «.(Tenderer)

uarketing Finance
Tender
Finances involved

TenderCost
is invited in two parts i.e. (1) Technical bid and (2) Financial
Cost
bid. The tender form for Technical bid prescribed in Annexure-I and the tender
of of Discounted Processes Quoting for Tender
form for the financial bid in pro form prescribed in Annexure-II complete in all
Technical bid Financial bid
respects should be submitted at the«««« in two separate Cashsealed
Flowcovers
addressed to the«««««««««««««Purchasing
Tender Document (Travelling,
payable communication, Buying Tender applications form from «.(Tenderer)
Courier,etc) Bills should be submitted on Each technical bid should
The successful bidder of
monthly basis with all accompany the Crossed Demand
the contract has to submit
supporting and payment will draft/ Bankers Cheque of
a Performance
be make within 30 days from Rs.10,000/- as Earnest money
Guarantee either by way
the date of submission of bills deposit
of Fixed Deposit or Bank
after deducting TDS as Guarantee receipt of Rs.
applicable. The log book 10,000/- per product within
maintained will be the basis for three days from the day of
making payments obtaining the contract.

Product Costing Product Pricing

uarketing Finance
Sales Statistics uarket Research uarket Intelligence

ProbabilityTheory
Local Direct
Export Tender
Sales

Processes
³uarketing´ Forecasting

Product Product Supply Payment


uarketing Planning Sizing pricing chain uode

Preparing uarketing Payment Payment


Infrastructure type recieve

Achievement
Distribution
Discounted Cash
Flow
Despatch Warehousing

In-House Exter nal

uarketing Finance
Discounting is a financial mechanism in which a debtor obtains the right to
Local Direct
delay payments to a creditor, Export
for a defined period of time, in exchange for a
Tender
Sales
charge or fee.Essentially, the party that owes money in the present purchases
the right to delay the payment until some future date.The discount, or charge, is
simply the difference between the original amount owed in the present and the
amount that has to be paid in the future to settle the debt.
Product
pricing
The discount is usually associated with a discount rate, which is also called the
discount yieldThe discount yield is simply the proportional share of the initial
amount owed (initial Costliability)
of
that must be paid to delay payment for 1 year.
Discount Yield = "Charge"
uanufactureto Delay Payment for 1 year / Debt Liability
- uark-up Discounted
It is also the rate at which
/ servicesthe amount owed must rise to delay payment for 1 Cash
Flow
year.

Based also Include Discounts


If we consider the value of the original/ Benefits
on Volume payment presently due to be $P, and the
production / Returns
debtor wants to delay the payment for t years, then an r% uarket Rate of
Return on a similar Investment Assets means the "Future Value" of $P is $P *
Sales be calculated as
(1 + r%)t and the "Discount" would
Discount = $P * (1+r%)t - $PAchievement
where r% is also the "Discount Yield".
Discounted
If $F is a payment that will be made t years in the future, then the "Present
Cash
Payment
Value" of this Payment, also called the "Discounted Value" of the payment, is
recieve Flow
$P = $F / (1+r%)t .