Financial Projections - Essay Example

Marketing Based Financial Projections Marketing Based Financial Projections The superior performance of a business on financial grounds is the resultant of extensive research and development efforts in order to develop efficient financial projections. The efficiency reflected in financial projection helps the organization achieve its goals and objectives at the right time and by using the minimum amount of resources (Khosla, 2010). Budgets and expenditures are developed in the light of marketing expenditures and budgets required.

Moreover, sales and revenue targets that are assigned to particular operations teams are also retrieved after extensive marketing research. These marketing researches provide decision makers ins and out of customers in the market, how would they behave towards the products and services offered by the business, what would be the demand for the offered products and services once the marketing campaigns are incorporated (Gorla et al., 2010; Hersey & Clanchard, 1969). Once the strategic targets that organizations tend to achieve are identified, organizations then line up their resources to achieve those targets.

This is the reason that marketing research plays an important role in financial projections as it enables decision makers to identify the set of product development efforts and marketing tactics required to make the offered product a success story (Handlechner, 2008). Marketing is also involved in financial projection as the decision makers develop projections to be achieved in the next in such a manner that it motivates shareholders and external investors to provide more financial strength to the company.

The added financial strength is then invested on further product development and improvement activities. List of ReferencesGorla, N., Somers, T.M. & Wong, B., 2010. Organizational impact of system quality, information quality, and service quality. The Journal of Strategic Information Systems, 19(3), pp.207-28.Handlechner, M., 2008. Risk Management. Norderstedt: GRIN Verlag.Hersey, P. & Clanchard, K.H., 1969. Management of Organizational Behavior: Utilizing Human Resources. NJ: Prentice Hall.Khosla, S., 2010. COnsumer psychology: The essence of Marketing.

International Journal of Educational Administration, 2(2), p.220.