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SALES BUDGET, QUOTASSALES BUDGET, QUOTAS
ANDAND
SALES TERRITORIESSALES TERRITORIES
PRESENTED BY:
INDRANSH GUPTA
JATIN ARORA
SALES BUDGET
 Estimates of expected volume of sales and selling
expense.
 Sales volume of sales budget is based on sales...
SALES BUDGET
 Design the product-wise / brand-wise sales
planning for a company,
 Design an effective territory planning...
SALES BUDGET:
 financial plan depicting how resources should be
allocated to achieve the forecasted sales.
THE PURPOSE OF...
WHY SALES BUDGET
 PROFIT PLANNING
 based on expected sales less cost of achieving the sales.
includes sales goals, strat...
WHY SALES BUDGET
 CONTROL
 Tool for evaluation of performance.
 In term of standard sales volume & selling expenses
aga...
METHODS USED FOR DECIDING SALES
EXPENSE BUDGET.
1. % OF SALES METHOD
2. EXECUTIVE JUDGMENT
3. OBJECTIVE AND TASK METHOD
SALES BUDGET PROCESS
 REVIEW SITUATION:
 reviews past, present & future (budget period).
 COMMUNICATION:
 writing to a...
SALES BUDGET PROCESS
 APPROVAL OF THE SALES BUDGET:
 consulting marketing head; national sales manager prepares 2/3
alte...
Sales Quota
 goals set by co. for marketing unit for specific period.
 Marketing unit may be regions, territory, branch,...
Objectives of Sales Quota
Making available performance standard:
 act as a tool to measure performance of sales
person, ...
Objectives of Sales Quota
Controlling performance:
 By setting quotas for special activities, sales volume & selling exp...
Objectives of Sales Quota
 Motivating people:
 Sales quotas are set by motivating sales people by money.
 performance i...
Objectives of Sales Quota
 Identifying strength &weakness:
 Actual performance compound respective quotas of
difference ...
Types of Sales Quota
Sales Volume:
1) Rs. sales volume:- many product easier to manage
(HUL)
2) Unit Sales volume: - Sets...
Types of Sales Quota
Financial Quota:
 Gross- margin/profit: Gross margin quota is decided
by ‘cost of goods sold’ from ...
Types of Sales Quota
Activity Quota:
 Direct sales person to carry out job related activity.
- Defining important activi...
Types of Sales Quota
Combination quota:
 Selling activity &non-selling activities,
 uses point as common measure to ove...
Methods for setting Quotas
1) Territory potential
2) Part sales expenses
3) Total marketing estimates
4) Executives judgme...
SALES TERRITORY
 group of customer accounts, an industry, a market or a
specific geographical area, assigned to a specifi...
GOALS
1) Proper Market Coverage
2) Effective Development of Sales Force
3) Efficient Customer Service
4) Objective Evaluat...
STEPS IN TERRITORY PLANNING
1) Salesperson’s Capacity
2) Frequency of Calls per Month
3) Parity in Sales Potential
4) Mini...
Improving Territory
Productivity
 clarity of approach to account development, as
well as to small/marginal customer,
pro...
Vardhman
 Sales Budget made based on pending orders, capacity and
product lines free.
 Sales Territory set according to ...
THANK
YOU
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Sales budget, quotas and sales territories

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Transcript of "Sales budget, quotas and sales territories"

  1. 1. SALES BUDGET, QUOTASSALES BUDGET, QUOTAS ANDAND SALES TERRITORIESSALES TERRITORIES PRESENTED BY: INDRANSH GUPTA JATIN ARORA
  2. 2. SALES BUDGET  Estimates of expected volume of sales and selling expense.  Sales volume of sales budget is based on sales forecast.  Sales Budget is slightly lower than the sales forecast.  Suggest the importance of sales forecasting and sales quotas for territory management.
  3. 3. SALES BUDGET  Design the product-wise / brand-wise sales planning for a company,  Design an effective territory planning for the sales force,  Plan the total expenses on effective coverage of your area,
  4. 4. SALES BUDGET:  financial plan depicting how resources should be allocated to achieve the forecasted sales. THE PURPOSE OF SALES BUDGETING:  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.
  5. 5. WHY SALES BUDGET  PROFIT PLANNING  based on expected sales less cost of achieving the sales. includes sales goals, strategy & action plan  cost of expected plan is based in sales quota; production; territory; customer & selling price.  CO-ORDINATION  B/w all deptts. i.e. marketing, finance, production, human resource etc.
  6. 6. WHY SALES BUDGET  CONTROL  Tool for evaluation of performance.  In term of standard sales volume & selling expenses against actual performance.  Yearly Budget is broken => Quarterly => Monthly.
  7. 7. METHODS USED FOR DECIDING SALES EXPENSE BUDGET. 1. % OF SALES METHOD 2. EXECUTIVE JUDGMENT 3. OBJECTIVE AND TASK METHOD
  8. 8. SALES BUDGET PROCESS  REVIEW SITUATION:  reviews past, present & future (budget period).  COMMUNICATION:  writing to all field office regarding formats, guidelines, assists and time about all three budgets.  SUBORDINATES BUDGETS:  sales managers prepares sales budget for their respective sales territory and submits it to national sales manager  National sales manager prepares the companies proposed sales budget by combining the received budget.
  9. 9. SALES BUDGET PROCESS  APPROVAL OF THE SALES BUDGET:  consulting marketing head; national sales manager prepares 2/3 alternative proposals of sales budget  Sales budget is presented to top management.  OTHER DEPARTMENT:  Final sales budget given to other department to prepare are their own budgets.  sales budget is broken down into each sales territory quarterly and monthly.  A/c’s deptt. prepares cash budget and profit budget based on sales revenue information given by sales department and expenses budget given by other departments.
  10. 10. Sales Quota  goals set by co. for marketing unit for specific period.  Marketing unit may be regions, territory, branch, salesperson, a distribution or a dealer.  can be set on sales unit, expenses, profit margin, activity, customer satisfaction etc.  Annual sales quota for each unit - broken down to quarterly/monthly.
  11. 11. Objectives of Sales Quota Making available performance standard:  act as a tool to measure performance of sales person, act as a goal/target setter.  Performance standard set against which actual performance is compared to evaluate salespersons performance.
  12. 12. Objectives of Sales Quota Controlling performance:  By setting quotas for special activities, sales volume & selling expenses.  The SM (sales manager) controls performance. Fore.g:-10 calls per day i.e. 5 calls of business customer’s indirectly monitors/controls the activities of sales person by setting quotas.  Can keep an eye on wasteful expenditure on customer (travelling, lodging, entertainment & meals)  Control over reporting &can influence sales performance.
  13. 13. Objectives of Sales Quota  Motivating people:  Sales quotas are set by motivating sales people by money.  performance is recognized by awards/rewards like trips abroad.  financial compensation/ rewards are called incentives.  incentives linked with quotas which are made achievable for sales person. So that he puts in extra effort to achieve his quota.
  14. 14. Objectives of Sales Quota  Identifying strength &weakness:  Actual performance compound respective quotas of difference territories & salespersons.  The SM can identify successful &unsuccessful performance.  Analysis of causes of poor performance may reveal training program needs improvement, better product quality required to meet customer needs & positioning strategy.
  15. 15. Types of Sales Quota Sales Volume: 1) Rs. sales volume:- many product easier to manage (HUL) 2) Unit Sales volume: - Sets sales volume in units. E.g. machinery/ milk/ petrol. 3) Point sales volume: - When company wants to make profit will target.
  16. 16. Types of Sales Quota Financial Quota:  Gross- margin/profit: Gross margin quota is decided by ‘cost of goods sold’ from sales volume.  Expense quota: Companies control over in cost of selling (travelling), control over expenses along with sales volume quota, SO that selling expenses are kept in line. E.g. Pantaloon -“Garv se kaho Hum kanjus hai”
  17. 17. Types of Sales Quota Activity Quota:  Direct sales person to carry out job related activity. - Defining important activity - Finding out time required for carrying out activity - Deciding priority given to carry out activity. - Deciding quota/ frequency for important activity.
  18. 18. Types of Sales Quota Combination quota:  Selling activity &non-selling activities,  uses point as common measure to overcome the problem of difference measures used by various quotas discussed earlier.
  19. 19. Methods for setting Quotas 1) Territory potential 2) Part sales expenses 3) Total marketing estimates 4) Executives judgment 5) Salespeople’s estimates 6) Compensation plan
  20. 20. SALES TERRITORY  group of customer accounts, an industry, a market or a specific geographical area, assigned to a specific salesperson.  factors that influence sales volume of a territory are territory size, its market potential, number of customer accounts, firms experience and market share in the territory, quality of salesperson assigned and the frequency of sales call made.
  21. 21. GOALS 1) Proper Market Coverage 2) Effective Development of Sales Force 3) Efficient Customer Service 4) Objective Evaluation of Sale Force 5) Improving Selling and Marketing Productivity
  22. 22. STEPS IN TERRITORY PLANNING 1) Salesperson’s Capacity 2) Frequency of Calls per Month 3) Parity in Sales Potential 4) Minimise Travel Time & Expenses 5) Suitably Station the Salesperson
  23. 23. Improving Territory Productivity  clarity of approach to account development, as well as to small/marginal customer, profit generators and detractors in the territory allocation of sales, marketing and other resources based on territory’s contribution potential effective utilisation of sales force time.
  24. 24. Vardhman  Sales Budget made based on pending orders, capacity and product lines free.  Sales Territory set according to branches : Delhi, CMY, Mumbai etc.  Sales Quota is Product-wise. Eg: 300 tons to be sold. 150 in Domestic Market 150 to be exported Further divided according to products.
  25. 25. THANK YOU
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