Cash-Flow and Marketing, Where do they fit?



Roles of Cashflow

Cashflow is about managing your revenue through its distributions of expense, investments, and profit, Expenses such as liabilities, overheads, operations and wages. Investments such as marketing, new product develop/ research and development, acquisitions and more. Profits such as owner's compensation and quarterly business profit. The ultimate and continuous objective of a business cash flow management is business efficiency.

Role of marketing


Marketing, on the other hand, is about communication between your business and your customers, referring to the marketing process cycle, the 1st stage is research, then strategy and planning, then implementation and review and analysis. And to put it in simple term, 1st stage you're listening, 2nd, develop a message and value, 3rd communicate back and lastly 4th, review of effective your communications are. The ultimate and continues objective of marketing is to help a business increase in sales.

How does it go into together?

As mentions above in the role of cash flow, marketing lies under the investment that the business willing to make. As the objective of cash flow in business is efficiency, a business owner would want their investment paid off while creating a cushion in case the investment doesn't pay off. In other word is business want a positive ROI and still can afford the loss if the investment doesn't produce the results. If marketing is a risk, do you need it?

Competitiveness


For a business to stay competitive in today's market, business needs to stand out from the crowd. We're in a world where standing and waving to say you're available are no longer sufficient. You'll always have a competitor whose goal is to steal your pie. Your success depends on how well you market your business and product to your consumers.

Risk management

There are risks in everything you do. No matter how big or small it is, they're still a percentage within the chance that you will fail. How can you manage the risks and minimise the negative consequences if things don't go as expected? Understand the concept of marketing enables you to follow a step by step guide in a continuous action procedure.

Here is how Marketing works:

  1. Research: a. Understanding your market, your customers, your business and more. Researching is about understanding! Knowing something valuable will minimise your risks and even help you to maximise your returns!

  2. Strategy and Planning: a. Once you know and understand something valuable, you must develop a strategy and plans to accomplish your goals and objective. Without any planning, your action will be inconsistent, entangle and confused. You want your implementation organised and trackable to replicate its success! b. The marketing plan ensures your activity is proactive in fixing problems that might potentially arise.

  3. Implementation: a. DO, DO, DO! Put things into action and DO IT. b. Coordinate your marketing activity to ensure everything works consistently and congruently. c. Fix and response to any problems.

  4. Review and analyse: a. Fix any mistakes that might arise. b. Improve for optimizations. c. Eliminations for optimizations.

Conclusion

Generally, business requires to invest in its marketing for business growth. Typically, 7-15% contributions from the revenue should reinvest into its marketing for the upcoming periods. By allocating percentages of the revenue in the reinvestment ensures your marketing's budget grows with the business. Also, keep in mind that there are Many moving marts within your marketing activities, the more you know the role and essential of marketing, the more likely you will succeed.

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