Sales Forecasting Budget and Control

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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

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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
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Evaluation of the approach and methods used for sales forecasting as well as monitoring of the actual sale and its comparison with the estimated performance form part of the regular activities of the Sales Manager. As the sales realize for the operating period, they should be monitored at a regular time period. The unfolding of market reality often creates the need to adjust the sales forecasts. Business prudence desires that in the case of annual sales forecasts, the forecasts should be thoroughly reviewed at least on a quarterly basis and if need be, corrected too. A similar review on an annual basis in the case of long-term forecasts is also felt necessary. In the process of carrying out corrections in the sales forecast emphasis should be laid on diagnosing the causes warranting such corrections so that the accuracy level of sales forecasts can be improved. In any case, a strong justification must be made for modifying the sales forecasts so that suitable adjustments in the marketing and sales strategy be also carried out. Many a firms in order to minimise the error factor in sales forecasting, use multiple experts and approaches. At times this results in varying levels of sales forecasts. Under these circumstances, the manager may examine the differing forecasts by:
• • • •

Probing into the methodology of sales forecasting adopted by different experts, Looking into definition and scope of the terms used in the
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