Sales mamagement


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



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

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

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