chapter  4
36 Pages

Financial Analysis for Marketing Decisions

In this chapter we address the third element of what marketing managers must understand: the financial implications of marketing decisions (see Figure 4.1).

FINANCIAL ASSESSMENT

After the analyses described in the previous chapters have been completed, financial assessment should be undertaken. The financial assessment usually covers at least four different areas: (1) revenue

analysis, (2) cost analysis, (3) cash-flow analysis, and (4) analysis of return on investment (ROI).