Financial Modeling for Marketing Decisions
Do you or your team encounter difficulty in getting approval for your marketing campaigns? Has it occurred to you that whilst your idea sells, you may have under-estimated the financial hurdles which are blocking that approval? Or are there frequent instances where your company is unable to grow the business because marketing proposals fail to get endorsement from the finance team? This could be because the sales & marketing (“S&M”) team see only the “top-line” exciting sales growth potential whilst the finance team is preoccupied with the costs of those initiatives.
This course will benefit both the marketing and finance teams by ‘marrying’ the marketing and financial perspectives in assessing a marketing proposal. A series of practical demonstrations and case exercises are used to help you identify & weigh all the costs (including “hidden costs”) against the benefits of S&M initiatives in order to fully support the proposal from both perspectives.
The analyses learnt will apply to any business model – you may be selling through distributors or directly, using your own salesmen or a distributors’ sales force, or giving incentives through sales commissions or higher salaries.
Detail
| Date: |
28 Jun 2012 - 29 Jun 2012 |
| Duration: |
2, day(s) 9:00AM - 5:00PM |
| Fee: | $780.00 |
| Venue: | 51 Anson Road, #03-53 Anson Centre Singapore 079904 |
Fees are subjected to prevailing GST of 7%
For more information, please contact JobsDB Learning at 65788111 or email to learning@jobsdb.com.sg
Payment must be made before the commencement of the workshop. No cancellation is allowed 7 days prior to workshop.
Outline
Introduction
· Objectives of S&M initiatives
· Value creation as distinct from growth
Identifying types of S&M initiatives
· Growth, product-mix optimization, premiumization or branding
Calculating ROI of growth initiatives (including breakeven analysis)
· Advertising, entertainment
· Use of sales commissions
· Reducing selling price or offering trade discounts
· Use of promotional trade rebates (“freebies”)
· Incorporating “hidden” costs
· Considerations in marginal business
· Considerations in product discontinuation
· Extending credit period
· Use of prompt payment discounts
Assessing product mix initiatives
· Which products to prioritise?
· Measuring product profitability
Calculating ROI of premiumization or branding initiatives
· Identifying & quantifying benefits and costs
· Weighing the benefits against the costs of premiumization or branding
· Relevance of Payback Period and Net Present Value (NPV)
Financial Modeling for Marketing Decisions
Inter-dependency of S&M initiatives with other business functions
· Effect of budgetary approach
· Effect of sales forecast on other business functions
· Decisions affected by the “accuracy” of S&M forecasts
· Building assumptions in forecasts
Facilitators
Grace Chow runs a company specialising in customised financial training and business consultancy. She
has over 20 years of working experience in public accounting, banking, fund management, and corporate
training. She is highly experienced in training participants with no financial background, especially sales &
marketing professionals and engineers, and at different levels from top management to executives. Grace
has conducted regional financial management & related programs for a wide range of clients in the Asia-
Pacific region, and has worked closely with many in developing and assessing business plans which cover
strategic marketing to process improvement.
Grace holds a Bachelor of Business degree and is a member of the Institute of Certified Public
Accountants of Singapore, CPA Australia and the Malaysian Institute of Accountants.
Grace’s past & present clients include Asia Pacific Breweries, Barnes Group, Bosch, Cable & Wireless,
Carrier, Caterpillar, Citibank, Clifford Chance, Dumex, General Electric, Health Sciences Authority of
Singapore, Honeywell, Hulhumale Development Corporation of Maldives, ICI, IE Singapore, Keppel Land,
Maersk, Merck/MSD, Mitsubishi, National Semiconductors, Novellus, NTUC Club, OCBC, Osram, Pfizer,
Raffles Medical Group, Rhode & Schwarz, Roche, SAFRA, SATS, SCORE, Shell, Singapore Business
Federation, Singapore General Hospital, Singapore Mass Rapid Transit, Singapore National Printers,
Singapore Power, ST Aerospace, Telekoms Malaysia, WDA, amongst many others.
Who Should Attend
· Managers and Executives who are involved in developing or proposing sales & marketing initiatives.
· Analysts and Finance Managers who are responsible for assessing the economic feasibility of sales &
marketing initiatives.
· Senior Managers responsible for approval and product managers who are involved in the
implementation.
Objectives
· (For proposers) Be equipped with practical tools to justify your S&M initiatives
· (For decision-makers) Be able to evaluate S&M initiatives from both qualitative and quantitative
perspectives so as to choose the best strategies which will bring the highest value added to your
business
· Understand the cross-functional impacts of S&M initiatives and pitfalls to avoid