hi

1. SALES BUDGETS, QUOTAS, TERRITORY AND CONTROL
DEEPAK SINGH
PCTE LUDHIANA
Sales Budgeting

2. What is Sales Budget?
An estimate of volume of sales and selling
expenses
Sales volume: based on sales forecast, but kept
slightly lower than sales forecast
Sales budget is prepared:
 Product wise
 Territory wise
 Sales person wise
 Customer wise

3. Why prepare sales budget?
Planning
 Predicting profits
 Assigning targets to team
 Planning production/ allocation of resources
Coordination
 Keeping all departments and teams on same page
 Leveling expectations
 Clarifying requirements
Control
 Monitoring actual Vs targets
 Corrective actions

4. Sales Budget Process
Text book proposed process:
Situation review
 Past performance, current situation
Central communication
 Formats, guidelines, timelines
Subordinate budgets
 Consolidates to national budget
Approval of sales budget
Communication of budget to all
Practical process: ?

5. Sales quotas/ Sales targets
Sales quotas are goals set by a company for its
marketing unit (city, area, territory, team, etc) for a
certain period of time
SQ can be on the basis of:
 Unit sales
 Profit margin
 Activity
 Expenses
 Customer satisfaction index
 etc

6. Why set Sales targets/ Sales Quotas?
Setting a performance standard for comparison
 Where do I stand?
Controlling performance
 Identifying loss making activities/ areas
Motivating people
 Rewards on achievement
 Performance linked incentives
Identifying strengths and weaknesses
 Scope for training
 Change of role
 Mentoring and benchmarking

7. Types of Sales Quotas
Sales Volume
 Rs sales - HUL
 Unit sales – CAT
 Point sales volume – paints companies points system
Financial Quota
 Profitability targets – ICICI Lombard
Combination Quota
 Almost all companies

8. Sales Territory
An exclusive (mostly) territory assigned to a
marketing/ sales team where no other member from
the company directly competes with the concerned
team.
Sales territory can be:
 Geographic – city, state, area, etc
 Type of industry: IT, Banking, Petroleum, etc
 Type of customer – corporate, retail, SME, etc
Helps reduce infighting in company
More efficient allocation of resources
E.g. Car insurance for Bentley of DHFL Chairman

9. Sales Control and Cost Analysis
Achievement of budgets and company objectives
Planning and executing corrective measures
Monthly/ Quarterly sales review
 Relation review to Vertical review
Introduction of stimulus measures
Impact on net profitability
Analysis of returns on sales expenses

10. Thank You