Wednesday, January 23, 2008

Sales Budget - SFA

Sales Force Management (SFA) we are talking here which is a part of agency management system of business. We talk about Sales forecasting in our last talked. Today we are going to talk on Sales budget.

Sales Budget:

The sales budget is a statement of projected sales revenues and selling expenses. Agency management system needs to have a sales budget. The projected sales revenue is, in effect the sales volume objectives derived from the various sales forecasts. The projected selling expenses are determined by the different organizational units with in the sales department and are based on assigned sales and profit objectives.

The sales budget is best prepared in an atmosphere where the bottom-up planning style predominates, with each echelon preparing a tentative budget of revenue and expense.
During the period in which the budget is in effect, items in the approved budget are compared with actual sales and expenses, and action is taken to bring the two into alignment.

In reality, the sales budget is a composite of quotas for sales, profits and expenses. Budget is a valuable too for control.

ref: agency management system, Insurance SFA & CRM

Sunday, January 20, 2008

Sales Forecasts and Sales Budgets

Sales Force Management we are talking here which is part of agency management system. We talked Sales Force Automation in past post.

Today we are going to talk Sales Forecasts and Sales Budgeting.

Sales forecasting is the estimation of future sales of a company in a given period. It indicates how much a company with a given amount of resource can sell if it implements a particular marketing program.

Methods of sales forecasting

Sales forecasting method is a procedure for estimating how much of a given product can be sold if a given marketing program is implemented. Following are the some of the methods used in forecasting.

  • Jury of executive opinion
  • Delphi technique
  • Poll of sales force opinion
  • Projection of past sales
  • Time series analysis
  • Exponential smoothing
  • Survey of customer buying plans
  • Economic model building and simulation

ref: agency management system, sales force automation (sfa)

Friday, January 4, 2008

Sales Territory - Sales Force Management

Structuring sales force and Sales Territories we talked as part of agency management system in our past post. Sales Force Management we are talking here and as a part of that we talk Sales Force Automation .

Reasons for eastablishing Sales Territories:
Sales territories play a major role in plannig and control of sales operations. Follwing are the some of the reasons for having sales territories.

  • To provide proper market coverage.

  • To control selling expenses.

  • To assist in evaluation sales personnel.

  • To contribute to sales force morale.

  • To aid in the co-ordination o persnnel sllng and advertising efforts.

Steps involved in setting up sales territories:
in setting up sales territories, there are four major steps-

  • Selecting a basic gegraphical control unit.

  • Determining sales potential in control units.

  • Combining control units into tentative territories.

  • Adjusting for coverage difficulty and redistricting tentative territories.

ref: agency management software, Insurance SFA & Insurance CRM Software