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Capital Budgeting in Financial Marketing

Book Title: Recent Trends in Business Management and Social Sciences

Editors:  Dr. Jasbir Kaur and Dr. Devyani Ingale

ISBN:  978-81-970457-8-3

Chapter: 5

DOI:     https://doi.org/10.59646/rtbmssC5/134

Author:  Dr. Mangalgouri S Patil, Assistant Professor, Marathwada Mitra Mandal’s Institute of Management Education Research and Training (IMERT), Pune, Maharashtra, India.

Abstract:

Capital budgeting is a critical financial management process that plays a pivotal role in strategic decision-making within organizations. This paper explores the intersection of capital budgeting and financial marketing, examining how businesses allocate financial resources to marketing initiatives to maximize long-term value. The study delves into various capital budgeting techniques, such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period, and their application in evaluating marketing projects. The integration of financial marketing and capital budgeting involves assessing the potential returns and risks associated with marketing investments, aligning them with the organization’s overall financial goals. The paper also discusses the challenges faced by financial marketers in justifying and optimizing marketing expenditures, considering the dynamic nature of consumer behavior and market trends. Furthermore, the research explores the role of technology and data analytics in enhancing the accuracy of financial projections and improving the efficiency of capital budgeting for marketing initiatives. It highlights the need for collaboration between financial and marketing teams to ensure a comprehensive understanding of the financial implications of marketing strategies and their impact on the organization’s bottom line.

References

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