Introduction to financial management

Financial management is concerned with the acquisition, financing and management in the business. Financial management is related to like accounting, economics, financing, mathematics, tax operation etc.

It is the specialized activity planning, organizing, directing and controlling with the top level financial management. It includes about money decision the capital structure, capital budgeting with short term and long term allocation.

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Definition

“Financial management, also referred to as corporate finance as managerial, is broadly concerned with the acquisition and use of funds by a business firm.”--- Prof. Prasanna Chandra

“Managerial management is concerned with the duties of the financial manager in the business firm.”--- Lawrence.J.Gitman

“Financial management is the operational activity of a business that is responsible for obtaining an effectively utilizing the funds necessary for efficient operations.”---Joseph Massie

Significance of financial management

The importance of financial management is wide are large. Every business affected financial activities with the money decision. Therefore, the significance of financial management is given below:

• Financial planning
• Successful business
• Smooth running of enterprise
• Facing unexpected risk
• Coordination of functional  functions
• Global competitiveness
• Business credit rating
• Paying regular dividends
• Protection of investment
• Improve profitability
• Help of decision making
• Promotion to save financial solvency
• Determination of business success
• Increase the value of the firm
• Measure the value of the firm

Function of financial management

Functions of finance are not goals the firm, but these achieve the ultimate goal of the firms. The following are the functional of financial management is below:

• Co-operation
• Organizing financial staff
• Relationship with stakeholders
• Protecting with shareholder’s interest
• Opportunity identification
• Management of cash
• Risk management
• Analysis of capital management
• Transact routing functions
• Ensure optimums liquidity
• Investment decision
• Need assessment of funds
• Capital structure decision
• Earnings retention and distribution
• Financial control

Features of financial management

Financial management is common in all types of business concerned with where to invest, how to invest, and how the investment should be managed. Especially with stock companies in need of financial management considerably both in the corporate sector. In the following section to focus on these unique features of financial management with the common features:

• Financial planning
• Forecasting flow of funds
• Investment decision making
• Protection of investment identification of sources of funds
• Procedural analysis of investment decision
• Retention and distribution of profit
• Debt-equity ratio analysis
• Risk-return trade- off
• Agency problem
• Controlled by professional managers
• Establishing financial relation and its protection

Principle of financial management

Financial management is the maximization of the wealth of the shareholder. This goal activity of financial management is to be operated under a set of principle. These can be called as the principle of finance the important role in decisions making made by financial management. So here we about the principle of financial management as follow:

• Optimum capital structure
• Annual budget plans
• The risk returns trade off
• Time value of money
• Liquidity and profitability
• Incremental cash flows
• Performance measurement
• Efficient capital market
• Competitive market
• The agency problem
• Principle of opportunity cost
• Principle of net present value
• Principle of coordination
• Taxes bias business decision
• Appropriate dividend policy

Goal of financial management of a firm

• Value of the firm and value per share
• Raising capital
• Investment of capital
• Protection of capital
• Maximization of wealth
• Maximization of profits
• Maintain steady earnings growth
• Avoid financial distress and bankruptcy

Social responsibility of financial management

The newest financial management strategies have run its operation the society while doing business. Every company has different social responsibility objectives through the main motive is the equivalent. The increased awareness of people social responsibility of the companies increased a lot. The corporate financial management is very existence depends on its being society's responsibility. The following are the social responsibilities of the financial management are as follows:

• Protecting investor interest
• Protecting consumers right
• Protecting creditors right
• Safe working conditions
• Ensuring pollutions free environment
• Maintaining fair hiring practices
• Ensuring a corruption free work environment
• Supporting education
• Proper use of resources

Introduction to marketing management

Marketing management is the process of planning, organizing, control and implementation marketing activities attain organization goals and objectives. The marketing management of the firms the planning and implementation of programs to design, create, Build, and maintain marketing strategies. And other hand, Marketing management is the process of determine environment, market opportunity, design, marketing, and market threat effectively implementation achievement organization goals.

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Definition

According to Philip Kotler, “Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.”

According to Steven J. Skinner, “Marketing management is the process of planning, organizing, implementing and controlling marketing strategies.”

Toward marketplace

There is a marketing management company orientation toward marketplace is the following: 

•  The production of concept
• The product of concept
• The selling concept
• The marketing concept
• The societal marketing concept
• The customer concept
• The holistic marketing concept-

a. Relationship marketing

b. Integrated marketing

c. Performance marketing

d.  Internal marketing

Function of marketing management

The functions of marketing management of depend on size, nature and function of the business organization. Marketing management performs his customer needs, customer satisfies and customer value implementation activities. The overall function of the business organization activities of marketing management is the following:

• Developing marketing strategies and plans
• Building strong brands
• Connecting with customers
• Communicating value
• Delivering value
• Shaping the marketing offerings
• Capturing marketing insights
• Creating long-term growth
• Implement and control the market

Objective of marketing management

The fundamental objective of marketing management is to assist management, formulating customer needs, wants, and demand activities marketing operation. The main objectives of marketing management some points as follows:

• Formulation of product planning and discovering in the distribution process
• Collection and analysis of data relating to marketing
• Pricing of product and its promotion and development
• Increase of profit through cost reduction
• Evaluation of performance

Basic responsibilities of marketing management

The newest of marketing management of companies work to understand the customer, customer satisfaction, customer value and long torn customer relationships while doing business. Therefore, the following of responsibilities of marketing management:

• Retaining the product quality
• Maintaining equality of supply and demand
• Reducing the product price
• To produce environment friendly product
• Participation in the social work
• Decreasing unwholesome demand
• Decreasing waste of marketing
• Retaining image of a country

Marketing management and demand management

Marketing management of research the market product and service their wants and resources people demand product with benefits and the most value and satisfaction. Therefore, the following marketing management and demand management is below:

• Negative demand
• No demand
• Latent demand
• Declining demand
• Overfull demand
• Unwholesome demand
• Irregular demand  and
• Full demand