Sales Forecasting Budget and Control
UNIT 8 SALES : FORECASTING, BUDGET AND CONTROL
Structure
8.0 8.1 8.2 8.3 8.4 Objectives Introduction Sales Forecasting Sales Quotas
8.3.1 How Quotas Are Set? 8.3.2 Attributes of A Good Sales Quota Plan
Sales Budgeting
8.4.1 8.4.2 8.4.3 8.4.4 8.4.5 Purpose Methods Preparation Implementation and Feedback Mechanism Flexibility
8.5 8.6
Sales Control Methods of Sales Control
8.6.1 Sales Analysis 8.6.2 Marketing Cost Analysis 8.6.3 Sales Management Audit
8.7 8.8 8.9
Let Us Sum Up Key Words Clues to Answers
8.0
OBJECTIVES
After reading this Unit you should be able to : • • • • • • • suggest the importance of sales forecasting and sales quotas for territory management, describe some of the managerial issues concerning sales forecasting, explain the importance and types of sales quotas and how they are established, discuss some of the attributes of effective sales quotas, understand the importance of sales budget and control in sales management, examine methods and approaches used for preparing sales budget, and discuss various methods of sales control.
8.1
INTRODUCTION
In this Unit we will discuss the managerial practises related to sales forecasting and sales budget. A sales budget is a financial plan depicting how resources should be allocated to achieve the forecasted sales. The purpose of sales budgeting is to plan for and control the expenditure of resources (money, material, people and facilities) necessary to achieve the desired sales objectives that have been set on the basis of sales forecasts. Sales forecast and sales budget are intimately related. If the sales budget is inadequate the sales forecast will not be achieved or, if the sales forecast is increased the sales budget must be increased accordingly. Sales budget, by relating sales obtained and resources deployed, also acts as a means for evaluating sales planning and sales effort. It aims at attaining maximum profits by directing the emphasis on most profitable
Structure
8.0 8.1 8.2 8.3 8.4 Objectives Introduction Sales Forecasting Sales Quotas
8.3.1 How Quotas Are Set? 8.3.2 Attributes of A Good Sales Quota Plan
Sales Budgeting
8.4.1 8.4.2 8.4.3 8.4.4 8.4.5 Purpose Methods Preparation Implementation and Feedback Mechanism Flexibility
8.5 8.6
Sales Control Methods of Sales Control
8.6.1 Sales Analysis 8.6.2 Marketing Cost Analysis 8.6.3 Sales Management Audit
8.7 8.8 8.9
Let Us Sum Up Key Words Clues to Answers
8.0
OBJECTIVES
After reading this Unit you should be able to : • • • • • • • suggest the importance of sales forecasting and sales quotas for territory management, describe some of the managerial issues concerning sales forecasting, explain the importance and types of sales quotas and how they are established, discuss some of the attributes of effective sales quotas, understand the importance of sales budget and control in sales management, examine methods and approaches used for preparing sales budget, and discuss various methods of sales control.
8.1
INTRODUCTION
In this Unit we will discuss the managerial practises related to sales forecasting and sales budget. A sales budget is a financial plan depicting how resources should be allocated to achieve the forecasted sales. The purpose of sales budgeting is to plan for and control the expenditure of resources (money, material, people and facilities) necessary to achieve the desired sales objectives that have been set on the basis of sales forecasts. Sales forecast and sales budget are intimately related. If the sales budget is inadequate the sales forecast will not be achieved or, if the sales forecast is increased the sales budget must be increased accordingly. Sales budget, by relating sales obtained and resources deployed, also acts as a means for evaluating sales planning and sales effort. It aims at attaining maximum profits by directing the emphasis on most profitable