1. Sales Management-
Execution aspect
Prepared By
Mathew Lawrence

2. Special Focus on:
• Sales Information System
• Sales Planning Management
• Sales Forecasting Management
• Sales Budgeting

3. Which are our
lowest/highest margin
customers ?
What impact will
new products/services
have on revenue
and margins?
Who are my customers
and what products
are they buying?
Which customers
are most likely to go
to the competition ?
What is the most
effective distribution
channel?
What product prom-
-otions have the biggest
impact on revenue?

4. Sales Information System- Introduction
• Sales management is about finding ways of
satisfying customer wants and needs.
• These wants and needs are satisfied with proper information-
internal as well as external.
• Early systems were paper-based systems but, with the emergence of
computers with large storage capacities and microcomputers with
similar features, marketing information systems have become more
"electronic" in nature. MIS (marketing information systems)
• One can define a marketing information system “As one which scans
and collects data from the environment, makes use of data from
transactions and operations within the firm and then filters,
organizes and selects data before presenting them as information to
management.”

5. Need for Sales Information System
• Sales information system forms the base for- Planning, forecasting,
budgeting, marketing research and other sales activities.
• Decision making: Unfortunately, in many firms, it is often difficult
to obtain information of the right kind.
• Anticipation of customer demand: Every marketer needs up-to-date
knowledge about consumer needs and wants.
• Significance of Analysing Competition: Marketers cannot survive
without having information regarding nature, character and size of
competitors.
• Marketing Planning: Marketing plans and programs are based upon
information supplied by economic forecasts and market research

6. Data Warehouse/Data Warehousing
• Data warehouse: A single, complete and consistent store of data
obtained from a variety of different sources made available to end
users in a what they can understand and use in a business context.
• Data warehousing: A process of transforming data into information
and making it available to users in a timely enough manner to make a
difference

7. Data Mining
• Data mining (sometimes called data or knowledge
discovery) is the process of analyzing data from
different perspectives and summarizing it into
useful information - information that can be used
to increase revenue, cuts costs, or both.
• Data mining, the extraction of hidden predictive information from
large databases, is a powerful new technology with great potential to
help companies focus on the most important information in their data
warehouses.
• Data mining tools predict future trends and behaviors, allowing
businesses to make proactive, knowledge-driven decisions.
• Data mining tools can answer business questions that traditionally
were too time consuming to resolve.

8. Data Warehouse & Data Mining- Flow Chart

9. Sales Planning Management
• Sales strategy is the game plan sales managers have
for achieving the enterprise level sales targets.
• Every sales manager, based on his experience and
understanding has some assumptions, goals and plans
for achieving what he needs to achieve.
• For achieving the long-term targets sales strategy or game plan
needs to be effectively executed on a day to day basis.
• For any strategy to be executed, it first needs to be translated into
actionable terms. As it is, in most of the companies, the whole sales
strategy is not translated into operational terms.
• In organizations, sales management system (SMS) is the single
largest factor that decides what sales managers will execute and
how they execute.

10. Continue….
• Some of the factors considered in Sales Planning are.........
1) What kind of sales target we need to have.
2) Which segment of customers do we serve and focus.
3) What kind of service quality we offer.
4) How do we differentiate our product.
5) What kind of sales culture we build.
6) Which of sales processes we focus on.
7) Competitors
8) Pricing
9) Key U.S. P

11. Sales & Profit
Time
Rupees
0
+
-
Introduction
Growth Maturity
Decline
Industry
Sales
Product Life Cycle- Graph
Industry
Profits

12. Sales Forecasting Management
• The Sales Forecast is the expected level of company
sales based on a chosen marketing plan and an assumed
marketing environment.
• It helps in the prediction of the future sales of a
particular product over a specific period of time based.
• The three parameters that covers in the sales forecasting are-
1) What customers say about their intentions to continue buying products
in the industry?
2) What customers are actually doing in the market?
3) What customers have done in the past in the market?
• Ideal Sales Forecasting Calculation: Last year's annual sales + (last year's
annual sales X rate of inflation) = next year's sales forecast

13. Continued…..
• There are two major types of sales forecasting which can be broadly
described as Macro and Micro:
Macro level forecasting: It is concerned with forecasting markets in
total. This is about determining the existing level of market demand
and considering what will happen to market demand in the future.
Micro level forecasting: It is concerned with detailed unit sales
forecasts. This is about determining a product’s market share in a
particular industry and considering what will happen to that market
share in the future.

14. Continued…..
• The selection of which type of forecasting is use depends on the several
factors which can be described as:
1) The degree of accuracy required – if the decisions that are to be made on
the basis of the sales forecast have high risks attached to them, then it
stands to reason that the forecast should be prepared as accurately as
possible. However, this involves more cost.
2) The availability of data and information - in some markets there is a wealth
of available sales information (e.g. clothing retail, food retailing, holidays); in
others it is hard to find reliable, up-to-date information.
3) The time horizon that the sales forecast is intended to cover. For example,
are we forecasting next weeks’ sales, or are we trying to forecast what will
happen to the overall size of the market in the next five years.
4) The position of the products in its life cycle. For example, for products at
the “introductory” stage of the product life cycle, less sales data and
information may be available than for products at the “maturity” stage when
time series can be a useful forecasting method.

15. Forecasting Approach
SBU
Region
District
Territory
Sales Person
Sales Quota
Sales Quota
Sales Person
Territory
District
Region
SBU
Top- down/ Beak down
Bottom- up Build Up

16. Sales Budgeting
• A budget is a plan expressed usually in monetary terms. It is portion
of allocating a portion of an organization's resources for its various
activities for a specified period of time.
• It includes estimates of sales volume and selling expenses.
• Sales volume budget is derived from the company sales forecast, -
generally slightly lower than the company sales forecast to avoid
excessive risk.
• It helps in planning and coordination of the organization’s activities.
Sales budgets are developed for the smooth functioning of the sales
function (Purpose)
• Sales budget gives a detailed break-down of
estimates of sales revenue and selling expenditure.

17. Continued…..
• In practice, sales managers prepare three types of budgets –
1) Sales budgets: A sales budget gives a plan showing the expected
sales for a specified period in the future.
2) Selling expense budget: Selling expense budgets details the
schedule of expenses that may be incurred by the sales department
to achieve planned sales.
3) Administrative budget: Administrative budget specifies the
budgetary allocations for general administrative expenses that
would be incurred by the sales department

18. Different methods of Budgeting
• The different methods for budgeting include the-
1) Affordability method: procedure used to set budgets, based on
what the organization thinks it can afford to spend. At times
organization may spend less than necessary to achieve a sales
target or fail to provide the necessary support to a new or declining
brand.
2) Percentage-of-sales method: procedure used to set
organizations budgets, based on a predetermined
percentage of past sales or a forecast of future sales.
Management usually determines the budget's percentage
figure, which is based on the industry average or the
company's historical or previous year's advertising spending.

19. Different methods of Budgeting (continued)
3) Competitive parity method: budget allocation for based on the
expenditures of competitors. The practice is sometimes
called defensive budgeting or defensive spending, because it is based
on the idea that one should defend against competition by spending
as much (or as little) as one's competitor.
4) Objective-and-task method: a budgeting method in which the
amount to be spent on sales promotion, advertising, personal
selling, etc is determined by the desired result of the activity
and the nature of the tasks necessary to achieve it.
5) Return-oriented method: a budgeting method where organization
compensate the allocation of fund according to their activities or
we can say on the basis of the return.