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Sales Forecasting, Budget and Cost Control: Presented by

Sales forecasting and budgeting are important parts of business planning. Sales forecasting involves estimating future sales based on marketing plans and environmental conditions. The forecasting process includes identifying important factors, selecting forecasting methods, developing preliminary forecasts, and evaluating results. Budgets estimate income and expenses and are used for planning, coordination, communication, motivation and control. Different types of budgets include sales, production, marketing and expenditure budgets. Sales budgets project units sold and expected prices to estimate total sales. Accurate forecasting and budgeting help businesses with planning, financial policies, production, and assessing product and sales program performance.

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1K views24 pages

Sales Forecasting, Budget and Cost Control: Presented by

Sales forecasting and budgeting are important parts of business planning. Sales forecasting involves estimating future sales based on marketing plans and environmental conditions. The forecasting process includes identifying important factors, selecting forecasting methods, developing preliminary forecasts, and evaluating results. Budgets estimate income and expenses and are used for planning, coordination, communication, motivation and control. Different types of budgets include sales, production, marketing and expenditure budgets. Sales budgets project units sold and expected prices to estimate total sales. Accurate forecasting and budgeting help businesses with planning, financial policies, production, and assessing product and sales program performance.

Uploaded by

Arpan Pal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Sales Forecasting ,Budget and


cost control

Presented by
Sishant Rav Divya
M.pharm I-Year ( Pharmaceutics )
Session 2017-2019
BBAU lucknow
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SALES FORECASTING
Sales forecasting is an integral part of business
planning.
It is estimate of during specified future period.
It is made according to proposed marketing plan.
Which assumes particular set uncontrollable and
competitive forces.
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SALES FORECASTING
 It is the expected level of company sales.
 Based on chosen marketing plan.
 Assumed environmental condition.
 It is prediction of future sales potential.
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Steps involve in sale forecasting
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1. Deciding Basic Issues
Period
Geographical Market areas
Availability of Time and Finance
Single Product or Full Product line
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Identifying Important Factor
Level of Competition
Economic condition
Marketing Strategy
Promotion Budget
Stage of Product Life cycle
Government Policy
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Selecting Suitable Methods
Nature of Product
Available Finance
Experience
Calibre of Sales Executive
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Deciding length
Short-Term: Less than a year
Medium-Term: 1 year to 5
Long-Term: More than 5 year
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Preliminary Sales Forecast
Data Collection
Data analysis
Experience of sales staff
Growth tends in sales
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Marketing Operational Program

Determination of Production level


Determination of Sales Budget
Determination of Sales quota
Determination of sales Territories
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Evaluation and Revision
Actual sales are compared with estimated sales
If the considerable Deference
Then region to be identify
Corrective steps to be taken
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Level of sales forecast

Economy level
Industrial level
Business unit level
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Budget and Cost control

Budget: An estimate of income and expenditure


For a set period of time.
TAYLOR : A budget is the master financial plan of
the government.
It is future plan of action.
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Importance of budget
It is frame work for policy formulation.
Budgeting means of policy implementation.
It means of legal control.
It is a tool of accountability.
It is tools of management.
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Types of budget
 Sales Budget
 Production Budget
 Capital Budget
 Cash Budget
 Marketing Budget
 Project Budget
 Revenue Budget
 Expenditure Budget
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Sales budget
Sales budget is the first and basic component of
master budget
 it shows the expected number of sales units of a
period and the expected price per unit.
It also shows total sales which are simply the
product of expected sales units and expected price
per unit.
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Objective of budgetary control

Planning
Coordination
Communication
Motivation
Control
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Planning

It is a process to making a plan for


something.
It is management process
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Coordination

The process of organizing people or group so


that they work together properly and well
It is unification ,integration, synchronization
of the group member
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Communication
Communication is a process by which we Conway
our thought, ideas, emotion to the receiver
In which includes Sender and receiver.
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Motivation
The term motivation derived from the word
“Motive” that means Need, desire
It is internal and external factor that stimulate
Desire in the people to be interested and committed
to job
22 Applications of Sales Forecast:

 It helps the management to decide marketing strategies.


 It helps in preparing the budget and for setting financial policies.
 It helps in material planning and avoids the evils of both the over-stocking and
under stocking.
 From forecasts we can find out which product is more profitable and which should
be manufactured and which should be dropped.
 Long range forecasts can predict future demand trends, which will enable the
planning for expansion of the concern.
 It helps in finding out which territory needs more attention. Various sales
programmes can be reassessed looking to their achievements.
23 CONCLUSION

 Postmortem analysis of disruptive events often reveals that all the information
necessary to forecast a disruptive event was available but missed for a variety of
reasons, including the following:
 Not knowing enough to ask a question,
 Asking the right question at the wrong time,
 Assuming that future developments will resemble past developments,
 Assuming one’s beliefs are held by everyone,
 Fragmentation of the information,
 Information overload,
 Bias (institutional, communal, personal), and Lack of vision.
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