The main purpose of marketing Finance is that to study of how marketing contributes to business value. It takes the interest to establish and increase the causal relationships between financial outcomes and marketing activities.
Marketing Finance connects marketing’s understanding of value from the customer views with Finance’s understanding of value. It is trusted that connecting these two perspectives is important if companies become to create sustainable business plans. Ones that give the value to customer while running an attractive economic margin for the business.
Marketing Finance stats from the foundation which are ultimate customers in source of business value. And that the role of marketing is strategic like communication, the creation and deliver of customer value. After the short and long term, can an explicit focus on customer value and customer relationships result in a more valuable business.
Marketing ROI is a huge visible aspect of marketing Finance but this is just part of the story. The true interest of Marketing Finance is in the value impact marketing. And this includes focusing on both the Balance Sheet impact and the Income Statement. Well principles of marketing Finance is that the success of investment in marketing must be made the idea in the terms of both in the incremental profits generated in the present reporting period and the incremental profits that incremental profits which are expected in the future period. The measurement of the stock of customer goodwill which is to be manifested in future purchases.