What Is The Conflicts Between Finance Department And Marketing Department?

Question

What Is The Conflicts Between Finance Department And Marketing Department?

2 Answers

Answer Question

Answer 1

Basically in an organization the finance department is responsible for the management of the finances available to the company and their right allocation. This department is more concerned about the budgeting, costing and risk diversification with minimum utilization of funds. On the other hand, the marketing department is responsible for the promotions of the products and services by all means. Therefore, the conflict between the two is that marketing department believes in bringing creativity in the promotional tools regardless of the funds required while finance department is more objective oriented and they want the tools which are more productive and require least funds. Finance department does not believe on the creativity and the abilities of the marketers and they want less inputs(funds) and higher outputs(sales dollars) . In this way a conflict emerges between the two departments.

Answer 2

Finance department is responsible for overall management of finances of the company. It is concerned with budgeting, costing, treasury management, risk diversification etc. Finance department has to see that money is being distributed properly.

On the other hand, Marketing department is responsible for realizing the needs of the customers and then designing a product according to these needs so that customers are satisfied.

The main conflict between finance and marketing department is allocation of funds. Finance department normally questions the expenditures by Marketing department. They think that the promotional campaigns or the overall money spent on marketing function is not bringing about any benefit to the company and is too exuberant. On the other hand, Marketing department is constantly in need of funds. They normally are in conflict with the finance department because they think their funds are justified and finance department is just being a hurdle.