Comparative Analysis of MBA in marketing vs Finance

MBA degree program as we all know is the most promising professional course for people who want to make a lucrative career in the field of management. Unlike any other Masters’ degree, here the students applying for MBA have to select the specialization options available at their respective B-schools. Out of so many specialization options available, MBA in marketing and finance is the most sought after field that students choose. In corporate world both marketing and finance areas are of great importance and require people with skilled managerial abilities for these departments.

Either you do specialization in marketing or finance it prepares students for management careers. The selection of courses has to be done on the basis of specific requirements, interests and goals.

The task of differentiating MBA program degree in marketing vs. finance is a difficult thing. Both fields deal with completely diverse aspects of management. For instance ‘finance’ field is about organizing the capital and ‘marketing’ field is about making strategies to take over the market. Here skills required and personal characteristics differ, so is the industry demand and needs.

MBA in Marketing

MBA in marketing makes students skilled and well-trained to take marketing decisions about public relations, advertising, and communication channels and formulate strategies.  Usually the course curriculum contains- ethics, economics, international sales and marketing, consumer behavior, strategic planning and so on. Students applying for MBA in marketing are given chance to select courses from sub-categories of marketing on the basis of individual goals and interests. It may comprise of areas like internet, advertising and international marketing.

Skills required:  Problem solving ability, extrovert personality, communication skills, logical approach, reasoning abilities, able to take calculated risks, strong decision making & implementing skills. The MBA aspirant should know how to apply marketing strategies in a correct manner.

Focus of study: Marketing, branding, people management, sales, advertising, etc. Job Opportunities: Advertising executive, Brand manager, Business development director, Market researcher, Product manager, senior marketing analyst

Work Profile: The work profile of a candidate with MBA in marketing usually includes - setting marketing goals, developing marketing strategies, branding, communication, client research, analyzing products viability and so on.

Career demand: High

MBA in Finance

MBA in finance trains the students to take financial decisions of different types of businesses and industries. Here the students get to learn how to obtain, manage and allocate funds in any business set-up. Usually the course curriculum includes topics like - budgeting, data analysis, international business, economics, marketing, finance and financial accounting.  Sub-categories include corporate finance, private equity, portfolio management, etc.

Skills required: Good communication skills, expert with numbers, reasoning ability, proper decision making skills, problem solving skills, willingness to take risks and attention to details.

Focus of study: Market analysis, economics, finance securities, costing, investments, etc.

Job Opportunities: Chief financial officer, financial analyst, financial manager, Insurance adjuster, Investment banker, Stock broker, etc.

Work Profile: Raising funds, cost management, collecting financial information, scrutinizing legal and financial aspects of new projects, etc.

Career demand: Depends of market demand.

Salary Packages for Indian MBA Graduates

The popular perception of doing an MBA for an assured pay check seemed to fade away as soon as recent studies revealed that nearly 40% of the MBA graduates failed to touch the expected margin. It does not mean that the demand for an MBA degree has become less. With more and more foreign conglomerates entering into the country the opportunity for MBA graduates is immense. However, the survey may be revised as the economy revives and offers MBA graduates the expected salary.

However, it should be remembered that you will get the actual benefit in terms of your salary only if the degree is earned from a reputed institute. These institutes are usually the ones that can be categorized as the top notch institutes. During their placements, these are the ones to get the benefit of placement that offer high salaries to students. 

On the other hand a recent study conducted over the salary packages offered to the MBA graduates shows that top notch institutes get a jump of nearly 70% in the salary structure and signing bonuses of companies visiting business schools to offer jobs. Companies like Google, Nike, J P Morgan, Johnson and Johnson, Procter and Gamble, Pepsi Co, BMW India, Sony Electronics, Deutsche Bank, Toyota, Nestle and Hindustan Uni lever are some of the companies that offer best of the salaries to the candidates they recruit during campus placement. While considering the salary packages you must take into account the fact that the demand for an MBA fresher and professional mainly comes from the financial services sector, the consumer goods companies and the consulting firms.

If considered, IIMs have witnessed a dramatic growth of salaries during the past few years. Students from ISB in 2013 got 20% more salaries than their senior graduates. Numerous companies frequently visit this campus including Boston Consulting Group, Credit Suisse, Deloitte, Deutsche Bank, AT Kearney, Nokia, Philips, Cognizant, and so on. Students also enjoyed a huge signing up bonus in the same year. Students from IIFT have also been seeing salaries moving northwards each year.

Moreover, brand of the institute matters a lot in deciding your post MBA salary. Most top companies in the world look to recruit only the fresh graduates who come out of top b-schools. This is probably because of the fact that there are only a few MBA colleges spread across the country and many, from different undergraduate programs, are looking to grab an MBA degree because the degree apparently holds a lot of importance.

What would be your salary post MBA depends on lots of factors such as brand of the institute, individual performance, prior work experience, the company one is joining, which segment of industry and so on. Nevertheless, MBA is still a lucrative career option in the long run in spite of economic downturn. However, you should always aim to pursue it from a top category B-school without settling for lower grade colleges.

Current Trends While Selecting MBA Specialization

For most B-school candidates selecting a specialization is a Herculean Task. It is so because your career is dependent on the specialization you pick during MBA. Moreover, you need to find out the latest trends, market dynamics and future industry demands based on which you can opt for a specialization.

According to MJ Xavier, director, IIM Ranchi, “There are three things that one has to take into consideration while deciding on the area of specialisation. First, you should examine your aptitude, interest in a desk job, liking for travel and whether you like interacting with people. Then, look at market opportunities. Currently, there are opportunities in finance, marketing, human resources, business analytics, media management, health management and hospitality management. One should also examine the educational background and experience and then find a match between them.” 

Most of the B-schools give their students significant time to think about MBA specialization and that’s why you have to select your specialization in the second year. Mr Xavier also cautioned that you need to select your specialization depending on your academic interest and professional experience.

If you have a degree in BSc Microbiology or in medicine with interests in social work, you should probably specialise in public health or health management. If you are an engineer with a couple of years of experience in a consulting firm, with interests in a desk job, you should get into finance or business analytics. 

Conventional areas such as finance and HR are no longer the most sought after popular choices in today’s constantly changing market. It’s IT, operations, marketing and consultancy that are climbing the popularity ladder. Also, the specialisations are not limited to marketing, human resources, finance, IT/systems and operations management. Now there are more options available such as entrepreneurship, rural development, sports management, hospital management, and brand management, giving more variety to students.

One more aspect that you should know before you decide your MBA specialization is to know about the kind of job opportunities available in the market and whether the particular area will interest you in the next few years. Another suggestion is to understand your priorities well in different specializations as industries and organisations have different ways of acknowledging the efforts of their employees.

While some industry may offer good appraisals and decent salary hike at a higher level, others may offer a lucrative pay package at a lower position.

Other aspects such as whether the company believes in flexible work hours, allows you to work on other domains and gives you the opportunity to innovate are equally important before you decide your specialization.

Out of these above mentioned MBA specialization areas there are a few areas that are evolving and very popular among students are hospital management, communication and entrepreneurship. The success story of B-school candidates who declined lucrative job offer and took up to run their own show has inspired many students and more and more candidates are enrolling for these options.

MBA is the latest trend in the education industry. Today, almost every MBA program offers a wide variety of courses and specializations to choose from. In fact, this part of education has swept almost every sector and industry. From MBA in business management to MBA in Healthcare Management, every small or big field today requires management skills catering to the demand of modern day business dynamics.