Impact Of Marketing On Financial Analysis
There is huge impact of marketing on the company’s financial analysis as the marketing strategies reflect their impact on the customers, channels and distributors. Basically, it helps the company to get the knowledge about the customer loyalty and awareness with the help of financial statements. Financial analysis also has a positive influence of the marketing activities as if the financial analyst estimates that the company share value is going down then they contact to the marketing team for enhancing their efforts in regards to increasing their sales (Terblanche, et al., 2013). Thus, such efforts reflect in the financial statements of the company under the heading of profits and sales account.
In addition to this, the marketing also contributes to make improvement in the performance of company and increases the shareholders value. For instance, analyst identifies any variations in the analysis of financial statements then in that case, company firstly estimates the budgets of the marketing team because marketing of a particular product/ services includes various activities like using of print media, broadcast media and bringing sponsorship etc. So, it has more influence on the company financial statement (Nath, et al., 2010). Thus, it is estimated that the marketing activities have a huge impact on the company’s financial statements as it provides the information to company about the sales and customer loyalty that is important aspects for the company.
Nath, P., Nachiappan, S., and Ramanathan, R. (2010) The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view. Industrial Marketing Management, 39(2), pp. 317-329.
Terblanche, N. S., Gerber, C., Erasmus, P., and Schmidt, D. (2013) A marketing perspective on the impact of financial and non-financial measures on shareholder value. South African Journal of Economic and Management Sciences, 16(2), pp. 216-230.