Finance for Marketing & Sales Managers (2235.YR.003881.1)

General information

Type:	OPT	Curs:	1	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 1	Daniel Benito Sánchez	Economía, Finanzas y Contabilidad	ENG

Basic financial knowledge: Understanding the financial reports and Capital Budgeting

A company must not be a sum of different departments fighting for resources. The goal for all of them must be the sustainability and improvement of the company in the long run and this is only possible if investors trust on our future.

Finance is the language of investors and the language of business. Only if we all can talk in the same language will it be possible to work together to accomplish that goal.

To review the basic language in finance that allows us to connect the different departments inside a company: Income St., Balance, Cash management, Marketing budget, ROCE, WACC and Enterprise Value among others.

To understand the most relevant metrics that help to make a relationship between marketing investments and the value of the company, and to be aware of relevant KPI and value drivers.

To analyze the long run effects of marketing decisions over the enterprise value that will help any CMO to convince CFO and CEOs for the investment needed.

To understand the relationship between customer value and enterprise value.

1. Finance for Marketing Decisions Describe the role of an Accountant Explain terms used in the Financial Statements: balance sheet, profit & loss account and cashflow Identify Components of the Primary Financial Statements

2. Costs analysis and budgeting Identify costs relevant for a decision Describe costing methods Calculate break even Identify the components of a budget

3. Key performance indicators Explain the need and use of Ratios Calculate profitability, activity liquidity and leverage ratios

4. Financial resources and working capital Identify sources of finance available

5. Financial Analysis and risk evaluation in Marketing Creation of excel templates for financial analysis

6. The Critical Link Between Marketing And Finance

The sessions involve a combination of lectures, case study discussions and presentations. The goal of the case discussions is to examine important financial concepts and to give you hands-on practice in evaluating the impact your marketing decisions have on the enterprise value. The lectures are intended to strengthen this work by presenting relevant frameworks, analytical techniques, practical insights and additional examples. On presentations, you will be asked to convince a CFO or a CEO about your proposal.

All the material necessary to prepare for class, the lecture slides, the case studies and required reading can be found on the course website.

Active participation in the classroom is paramount to your learning experience. For this reason, it is absolutely essential that you be prepared to contribute in each class. Preparing a case study discussion entails being familiar with the key facts and formulating an intelligent response to the problem faced by the protagonists. Put yourself in their shoes and try to see the situation as it appeared at that point in time.

There is no compulsory textbook for this course. If you are interested in buying a general reference financial book, I recommend Brealey and Myers (2013) or Ross, Westerfield and Jordan (2012). If you are interested in marketing metrics I recommend Farris, Bendle, Pfeifer and Reibstein (2015).

Group	Teacher	Department
Year 1	Daniel Benito Sánchez	Economía, Finanzas y Contabilidad