This document discusses sales forecasting, budgeting, and cost control. It defines sales forecasting as the estimated level of company sales based on a chosen marketing plan and assumed environmental conditions. The key steps in sales forecasting include identifying important factors, selecting suitable forecasting methods, developing preliminary forecasts, and evaluating and revising forecasts. Budgeting is defined as an estimate of income and expenditure over a period of time and is an important tool for planning, coordination, communication, motivation, and control. Sales budgets in particular show expected sales units, price per unit, and total expected sales. Budgetary control helps with planning, coordination, communication, motivation, and oversight of an organization.

1. Sales Forecasting ,Budget and
cost control
Presented by
Sishant Rav Divya
M.pharm I-Year ( Pharmaceutics )
Session 2017-2019
BBAU lucknow
1

2. SALES FORECASTING
Sales forecasting is an integral part of business
planning.
It is estimate of during specified future period.
It is made according to proposed marketing plan.
Which assumes particular set uncontrollable and
competitive forces.
2

3. SALES FORECASTING
 It is the expected level of company sales.
 Based on chosen marketing plan.
 Assumed environmental condition.
 It is prediction of future sales potential.
3

4. Steps involve in sale forecasting4

5. 1. Deciding Basic Issues
Period
Geographical Market areas
Availability of Time and Finance
Single Product or Full Product line
5

6. Identifying Important Factor
Level of Competition
Economic condition
Marketing Strategy
Promotion Budget
Stage of Product Life cycle
Government Policy
6

7. Selecting Suitable Methods
Nature of Product
Available Finance
Experience
Calibre of Sales Executive
7

8. Deciding length
Short-Term: Less than a year
Medium-Term: 1 year to 5
Long-Term: More than 5 year
8

9. Preliminary Sales Forecast
Data Collection
Data analysis
Experience of sales staff
Growth tends in sales
9

10. Marketing Operational Program
Determination of Production level
Determination of Sales Budget
Determination of Sales quota
Determination of sales Territories
10

11. Evaluation and Revision
Actual sales are compared with estimated sales
If the considerable Deference
Then region to be identify
Corrective steps to be taken
11

12. Level of sales forecast
Economy level
Industrial level
Business unit level
12

13. Budget and Cost control
Budget: An estimate of income and expenditure
For a set period of time.
TAYLOR : A budget is the master financial plan of
the government.
It is future plan of action.
13

14. Importance of budget
It is frame work for policy formulation.
Budgeting means of policy implementation.
It means of legal control.
It is a tool of accountability.
It is tools of management.
14

15. Types of budget
Sales Budget
Production Budget
Capital Budget
Cash Budget
Marketing Budget
Project Budget
Revenue Budget
Expenditure Budget
15

16. Sales budget
Sales budget is the first and basic component of
master budget
 it shows the expected number of sales units of a
period and the expected price per unit.
It also shows total sales which are simply the
product of expected sales units and expected price
per unit.
16

17. Objective of budgetary control
Planning
Coordination
Communication
Motivation
Control
17

18. Planning
It is a process to making a plan for
something.
It is management process
18

19. Coordination
The process of organizing people or group so
that they work together properly and well
It is unification ,integration, synchronization
of the group member
19

20. Communication
Communication is a process by which we Conway
our thought, ideas, emotion to the receiver
In which includes Sender and receiver.
20

21. Motivation
The term motivation derived from the word
“Motive” that means Need, desire
It is internal and external factor that stimulate
Desire in the people to be interested and committed
to job
21

22. Applications of Sales Forecast:
 It helps the management to decide marketing strategies.
 It helps in preparing the budget and for setting financial policies.
 It helps in material planning and avoids the evils of both the over-stocking and
under stocking.
 From forecasts we can find out which product is more profitable and which should
be manufactured and which should be dropped.
 Long range forecasts can predict future demand trends, which will enable the
planning for expansion of the concern.
 It helps in finding out which territory needs more attention. Various sales
programmes can be reassessed looking to their achievements.
22

23. CONCLUSION
 Postmortem analysis of disruptive events often reveals that all the information
necessary to forecast a disruptive event was available but missed for a variety of
reasons, including the following:
 Not knowing enough to ask a question,
 Asking the right question at the wrong time,
 Assuming that future developments will resemble past developments,
 Assuming one’s beliefs are held by everyone,
 Fragmentation of the information,
 Information overload,
 Bias (institutional, communal, personal), and Lack of vision.
23

24. 24