Sales Forecasting and Budgeting

If you fail to plan

You have
Planned to fail
 Sales forecasting (planning) is the
responsibility of the seller
 Planning
The purpose of planning is to allocate
company resources in such a manner as to
achieve these anticipated sales.
Sales forecasting can be done by forecasting
market sales (market forecasting)
 Short-term forecasts
Upto three months
Usually for tactical matters as producing
planning
Medium-term forecasts
Have direct implications for planners
Starting point for which is the sales forecast
Long-term forecasts
 Qualitative Techniques
Consumer/ user survey method
Panels of executive opinion
Salesforce composite
Delphi method
Bayesian decision theory
Product testing and test marketing
 Quantitative Techniques
Time series analysis
Causal techniques
 Rhodes
http://files.www.rhodesscholarshiptru
st.com/Application/PakistanMemora
ndum.pdf
Figure 16.1 A conceptually based model of judgemental forecasting
Source: Hogarth, R. (1975) Cognitive processes and the assessment of subjective probability distributions, Journal of the
American Statistical Association, 70 (350), pp. 27189.
Figure 16.6 The budgetary process
Figure 17.1 The salesforce evaluation process
Figure 17.2 The central role of evaluation in sales management
Table 17.1 A comparison of the usage of salesforce evaluation output criteria
between small and large organisations
Table 17.2 A comparison of the usage of salesforce evaluation input criteria
between small and large organisations
Figure 17.3 Salesperson evaluation matrix
Table 17.3 A comparison of the usage of qualitative salesforce evaluation criteria
between small and large organisations
Table 17.4 Winning and losing orders