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sales mgt

sales mgt

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Published by Komal Diwan

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Published by: Komal Diwan on Jan 15, 2011
Copyright:Attribution Non-commercial


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Sales mamagement


the direct labor budget. In essence. If the sales budget is sloppily done then the rest of the budgeting process is largely a waste of time. An accurate sales budget is the key to the entire budgeting in some way. . These budgets are then combined with data from the sales budget and the selling and administrative expenses budget to determine the cash budget. it is expressed in both dollars and units of production. This reciprocal relationship arises because sales will in part be determined by the funds committed for advertising and sales promotion. and the manufacturing overhead budget. typically. The sales budget will help determine how many units will have to be produced. depend on it in some way. purchase. The selling and administrative expenses budget is both dependent on and a determinant of the sales budget. The production budget in turn is used to determine the budgets for manufacturing costs including the direct materials budget.‡ ‡ ‡ A sales budget is a detailed schedule showing the expected sales for the budget period. and expenses. the sales budget triggers a chain reaction that leads to the development of the other budgets. the production budget is prepared after the sales budget. The sales budget is constructed by multiplying the budgeted sales in units by the selling price. The sales budget is the starting point in preparing the master budget. Thus. All other items in the master budget including production. inventories.



physical distribution. staffing. Revenue. training. leading & controlling organizational resources. .marketing research. and sources of funds fuel organizations and the management of that process is the most important function. sales. Sales management is attainment of an organization's sales goals in an effective & efficient manner through planning.pricing & product merchandising.‡ "sales management"originally referred exclusively to the direction of sales force personnel. "sales management" meant management of all marketing activities.sales promotion.including advertising.

customers whose business is valuable but static. Sales planning is important to product availability and customer satisfaction. such a model enables the sales manager to identify customers where joint strategic investment will deliver mutual value and predictability of volume and growth. It should be based on thorough research and a considered positioning of the company within the market place. Some authors recommend (particulary in business to business sales) that a customer portfolio analysis model. Sales Management in the Twenty-First Century is characterized by: ‡ ‡ . Flexible sales assets ensure that the company can respond effectively to demand fluctuations. which has a very important knock-on effect on the overall productivity of the company and needs to be as accurate as possible. Rogers. Sales planning involves predicting demand.Sales Strategy and Planning ‡ An essential sales leadership role is to establish a sense of purpose or vision and clear direction. Sales management is concerned with all activities. it should also consider how sales assets are deployed to address new opportunities. using their own strategic analysis. modified by an understanding of each customer's purchasing strategy (Fiocca. 1999). Senior sales managers are responsible for translating the overall business plan and marketing plan into a sales plan. which can seriously endanger cash flow and product throughput. 1982. The detail of the sales plan needs to be closely aligned with customers' buying cycles (Rackham and DeVincentis. processes and decisions involved in managing the sales function in an organization. target prospects who require considerable activity to be converted into strategic customers and customers whose business is occasional and/or low-value. which may involve the engagement of new channels to market or contract sales staff. The sales plan takes its direction from overall marketing strategy and brand values. Failure to plan or tactical plans can reduce the predictability of sales volume. Typically. 2007) should inform the sales plan. It involves planning the selling program and implementing and controlling the personal selling effort of the firm. This type of analysis enables a sales manager to allocate resource priorities and ensure that all sales budget and the time of salespeople is used effectively and efficiently.

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