Relationship between Marketing Planning and Annual Budgeting

Marketing planning and the annual budget are two procedures that organizations engage in. Although controlled by the marketing department and the finance department respectively, the marketing plan and annual budget are interlinked in many ways. Investigates the importance of this interrelationship. Reports on the results of a study of 41 fast moving consumer goods companies following a literature review of budgeting and marketing planning. The results show that there is a high degree of interaction between the marketing and finance departments. They also show that most companies tended to do the marketing plan and annual budget together. In addition, the sales forecast, although controlled by the marketing department, is set to meet financial targets.