Post on 23-Nov-2014
Sales budgeting
Allocation of sales cost
1.Fixed cost
2.Variable cost
3.Semi- variable cost
Sales budgets
Selling expense
Sales budgeting by Armoghan Tallat KHAN 1
Main selling cost categories
1.Selling1. Salary , commission bonus2. Travel and entertainment3. Prospect seminars4. Discounts and allowances
2.Promotion1. advertising allowances2. Catalogues and broachers3. Samples4. Selling aids5. Contest and deals
3. Fulfilment 1. packaging and shipping2. billing3. credit4. warranty5. returns Sales budgeting by Armoghan Tallat
KHAN 2
4. Servicing 1. Distributor and customer training2. Technical counselling
5. Support1. Recruitment and selection2. Training and development 3. Sales meetings4. Customer service5. Warehousing
6. Administration
1. Office expenses2. Telephone and postage
Sales budgeting by Armoghan Tallat KHAN 3
Method of funding the sales force
1.Affordable method
2.Percentage of sales method
3.Competitive parity method
4.Objective and task method
5.Other methods1. ROI2. ROTA3. ROA4. ROAM
Sales budgeting by Armoghan Tallat KHAN 4
Sales force automation
Sales budgeting proceduresSales budgeting procedures
1.Situation analysis
2.Identification of problem and opportunity
3.Development of sales forecast
4.Formulation of sales objective
5.Determination of sales task
6.Specification of resource requirement
7.Completion of projection Sales budgeting by Armoghan Tallat KHAN 5
8. Presentation and review
9. Modification and revision
10. Budget approval
Sales budgeting by Armoghan Tallat KHAN 6
Tips for winning the budget wars
1.Get the facts1. Prepare figures and facts2. Sales incremental documents3. Research and justify expense outlay
2.Put things on hold1. Do not include new projects if business is slow2. Do not try untested programs3. Set priorities and stick to them
3.Be realistic1. If cuts have to be made, make them2. Show your willingness to do the activity3. Cut your budgets, before somebody else point out
4.Be flexible1. If management want more cuts, be prepare to bargain 2. Read managements' thinking3. Be willing to compromise Sales budgeting by Armoghan Tallat
KHAN 7
5. Avoid confrontation1. Try to understand higher management's point of view2. Do not disagree on every issue3. Remember to save your best argument for the really important project
6. Stay lean1. Staying lean you can avoid big cuts
7. Sell it 1. sales is your forte 2. your budget is your product3. Upper management is your customer
Sales budgeting by Armoghan Tallat KHAN 8
Practice of sales budgeting
1.Honesty
2.Budget discipline
3.Intervals for budgets
4.Sales productivity
Sales budgeting by Armoghan Tallat KHAN 9
Corporate Mgt
Vision/ Mission
Evaluate sales n mktg plan
Budgeting and resource allocation
Call for marketing plan
Call for budgets
Marketing management
Develop marketing objective
Sales and marketing plan
Request functional and departmental budgets
Submit budgets
Call for action plan
Evaluate programs/ alternative
Coordinate and approve budgets
Sales management
Action plan/situation analysis
Develop sales budgets/ submit for approval
Sales budgeting by Armoghan Tallat KHAN 10