Sales Management

Topics: Sales, Marketing, Sales management Pages: 17 (4268 words) Published: October 25, 2013
Chapter 5
120 – Sales forecast, quotas
sales forecast: the future market potential for a specific product •quota: sales goals for different sales territories and individual people
121 – contingency, sales and operational planning
contingency: events that are conceivable but less likely than those based directly on the forecast •sales and operational planning (S&OP): an organized process that uses sales inputs to forecast business for upcoming periods of varying length

123 – SIC, NAICS
standard industrial classification (SIC): a uniform numbering system for categorizing nearly all industries according to their particular product or operation •North American Industrial Classification System (NAICS): a system for categorizing firms, formally adopted beginning with the 2002 Economic Census and the publication of the 2002 US NAICS Manual

124 – buyer intention
buyer intention: the likelihood that customers will actually purchase a given product, can be estimated using surveys
126 – nonquantitative forecasting techniques
subjective forecasts based on knowledgeable people’s opinions instead of being analytically derived, often called subjective forecasts – two types: judgment methods and counting methods
129 – time series method, moving averages
time series method: use historical data to predict future sales, look for four factors (trends, periodic movements, cyclical movements, erratic movements) •moving averages: forecasts developed mathematically based on sales in recent time periods

131 – causal methods
methods that attempt to identify the factors affecting sales and determine the nature of the relationship between them; also called association methods •different types: correlation analysis, regression analysis, econometric models, input-output models

136 – evaluating forecasting approaches
several criteria should be considered
ocomprehensibility – the way estimates are derived
oaccuracy
otimeliness – forecasting methods must generate forecasts in time for managers to use them; some of the more complex techniques take longer  sometimes managers may resort to faster but less accurate methods/estimates oquality and quantity of information

oqualified personnel – consultants must be fully qualified for the job oflexibility – must be able to adapt to changing conditions ocosts/benefits – benefits must offset the costs; if the cost of an inaccurate forecast is high, the manager should be willing to spend more to get an accurate forecast

137 – sales budget
a financial sales plan outlining how to allocate resources and selling efforts to achieve the sales forecast
138 – preparing the annual sales budget
review and analyze the situation; communicate sales goals and objectives; identify specific market opportunities and problems; develop a preliminary allocation of resources; prepare a budget presentation; implement the budget and provide periodic feedback

Chapter 6
149 – why plan
an attempt to manage the future  “making decisions today to create a desired tomorrow” •change is continuous  planning minimizes environmental shocks (price increases, tax law changes, shortages, etc)

150 – table 6.1
151 – policies, procedures, strategy, tactics
policies: predetermined approaches for handling routine matters or reoccurring situations •procedures: detailed descriptions of specific steps for carrying out actions •strategy: an overall program of action for using resources to achieve a goal or objective •tactics: day-to-day actions that make up the strategic plan

152 – figure 6.1
the sales management planning process: analyze the situation  set goals and objectives  determine market potential and forecast sales  develop strategies  allocation resources and develop budgets  implement the plan  evaluate and control

154 – determine market potential and forecast sales
market potential: the maximum possible sales for an entire industry •sales...
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