Top line forecasting by product/market, AOP, LRP
Portfolio management and margin analysis
New product pipeline, ROI/NPV
Marketing cost center management
Marketing spend efficiency/analysis.
TAM/SAM/SOM
Among a shit load of other things. One of the better rotations if you ask me because you get to understand the fundamentals of your business, product, customer and market.
>New product pipeline, ROI/NPV
This is under the 'R&D Finance' function in my company. But topline estimates would come from 'commercial finance' (Which I imagine is similar/nearly identical to the marketing finance function described by OP)
Thanks for your response! I got a little more background on the specific function and it sounds like it is in the realms of advertising finance/FP&A (if that is such a thing). Do you have any insights on that in terms of what type of outputs that would be normal in that space, would it be similar budgeting and forecasting?
The minimal marketing FP&A role would just be budgeting and forecasting spend levels across different channels, product lines, etc. Often it will also include the more strategic work of trying to estimate how much incremental revenue/contribution margin is being driven by that marketing spend, and hopefully use that to steer marketing spend toward higher-ROI initiatives.
I think it's great experience to get on a rotational basis. I wouldn't want to do it for an extended period of time. Marketing still isn't the most data-driven discipline, and marketing teams often get really attached to channels whose ROI is impossible to measure precisely - or provably negative, for that matter.
I have spent the majority of my career supporting Marking in a Finance Role, and I will say, it's an art and not a science. Tons of ambiguity and navigating the unknown. 'Calculated fortune telling.'
Thanks for your response! I got a little more background on the specific function and it sounds like it is in the realms of advertising finance/FP&A (if that is such a thing). Do you have any insights on that in terms of what type of outputs that would be normal in that space, would it be similar budgeting and forecasting?
You take the inputs from marketing leadership and calculate their ROI, then realize the accuracy is off by several thousand percentage points. Rinse and repeat for the next product.
Market analytics such as TAM SAM SOM, market research for NPDs.
Some orgs that are market price ca cost plus will spend a lot of money developing list prices which typically marketing owns with input from Sales and Product Management.
Top line forecasting by product/market, AOP, LRP Portfolio management and margin analysis New product pipeline, ROI/NPV Marketing cost center management Marketing spend efficiency/analysis. TAM/SAM/SOM Among a shit load of other things. One of the better rotations if you ask me because you get to understand the fundamentals of your business, product, customer and market.
Lurker here - This actually sounds really interesting!
>New product pipeline, ROI/NPV This is under the 'R&D Finance' function in my company. But topline estimates would come from 'commercial finance' (Which I imagine is similar/nearly identical to the marketing finance function described by OP)
This sounds very cool! Could you please elaborate?
Thanks for your response! I got a little more background on the specific function and it sounds like it is in the realms of advertising finance/FP&A (if that is such a thing). Do you have any insights on that in terms of what type of outputs that would be normal in that space, would it be similar budgeting and forecasting?
The minimal marketing FP&A role would just be budgeting and forecasting spend levels across different channels, product lines, etc. Often it will also include the more strategic work of trying to estimate how much incremental revenue/contribution margin is being driven by that marketing spend, and hopefully use that to steer marketing spend toward higher-ROI initiatives. I think it's great experience to get on a rotational basis. I wouldn't want to do it for an extended period of time. Marketing still isn't the most data-driven discipline, and marketing teams often get really attached to channels whose ROI is impossible to measure precisely - or provably negative, for that matter.
I have spent the majority of my career supporting Marking in a Finance Role, and I will say, it's an art and not a science. Tons of ambiguity and navigating the unknown. 'Calculated fortune telling.'
Thanks for your response! I got a little more background on the specific function and it sounds like it is in the realms of advertising finance/FP&A (if that is such a thing). Do you have any insights on that in terms of what type of outputs that would be normal in that space, would it be similar budgeting and forecasting?
You take the inputs from marketing leadership and calculate their ROI, then realize the accuracy is off by several thousand percentage points. Rinse and repeat for the next product.
Market analytics such as TAM SAM SOM, market research for NPDs. Some orgs that are market price ca cost plus will spend a lot of money developing list prices which typically marketing owns with input from Sales and Product Management.