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