Financial management can be looked upon as the study of relationship between the raising of funds and the deployment of funds. The subject matter of financial management is: capital budgeting cost of capital, portfolio management, dividend policy, short and long term sources of finance. Financial management involves mainly three decisions pertaining to:
1. Investment policies:
It dictates the process associated with capital budgeting and expenditures. All proposals to spend money are ranked and investment decisions are taken whether to sanction money for these proposed ventures or not.
2. Methods of financing:
A proper mix of short and long term financing is ensured in order to provide necessary funds for proposed ventures at a minimum risk to the enterprise.
3. Dividend decisions:
This decision affects the amount paid to shareholders and distribution of additional shares of stock.
5. Marketing management:
Philip Kotler views marketing as a social and managerial process by which individuals and group obtain what they need and want through creating and exchanging products and values with others. American Marketing Association defines market¬ing management as the “process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives.”
The course content of marketing management generally includes: marketing concept, consumer behavior, marketing mix, market segmentation, product and price decisions, promotion and physical distribution, marketing research and information, international marketing etc.
Modern marketing management is bridging the gap of demand and supply through de-marketing, re marketing, over-marketing and meta- marketing. Modern marketing, from societal point of view, is the force that harnesses a nation’s industrial capacity to meet the society needs and wants.
The main function of modern management is to organize human and physical resources and direct them toward efficient performance and higher productivity at the minimum costs. The same line of thinking can be applied in various functional areas viz., personnel, production, office finance and marketing. Modern managers are the harbinger of cooperation, fellow feeling, mutual understanding and growth.
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