Chapter 5 Notes
Sales Management
3 questions on test
Sales Forecasting & Budgeting
Objectives
Relate sales forecasting to operational planning
Use the most popular quantitative and qualitative sales forecasting tools
Evaluate the various sales forecasting techniques
Identify the purpose and benefits of sales budgets
Prepare an annual sales budget
Sales Forecasting and Operational Planning
Sales forecasting
Prediction of the future market potential for a specific product
Market potential
Quantitative estimate, in either physical or monetary units, of the total sales for a product within a market
Sales potential
The portion of market potential that one among a set of competing firms can reasonably expect to obtain
Importance of accuracy
S&OP
Forecast Approaches
Breakdown
1. Forecast general economic conditions
2. Estimate industry’s total market potential for a product category
3. Determine the share of this market the company currently holds and is likely to retain in view of competitive efforts
4. Forecast sales of the product
5. Use the sales forecast for operational planning and budgeting
Buildup
Based up on primary research, whish is new data collected for the specific purpose at hand
Non-quantitative
Opinion based
Judgment
Counting
Forecasting approaches that tabulate responses to questions on surveys or count the numbers of buyers or purchases
Qualitative
Evaluating Approaches p.136
Comprehensibility
Accuracy
Timeliness
Quality/quantity of information
Qualified personnel
Flexibility
Cost/benefit
Sales Budget Planning
Sales budget
Planning function
Coordinating function
Controlling function
Preparing Annual Budget
Benefits of budgeting
Procedures for setting up a budget
Review/analyze the situation
Communicate goals and objectives
Identify market opportunities/problems
Develop primary draft
Prepare a budget presentation
Implement and feedback
Notes Chapter 6
Sales Management
3 questions on test
Sales Force Planning and Organizing
Objectives
Understand the purpose and levels of organizational planning
Apply the sales planning process, including strategic and tactical sales planning
Avoid
current assets; the remainder are classified as noncurrent. 4 RECEIVABLES Trade receivables – arise from the sale of the company’s products or services to customers. Can be classified into two categories: 1. 2. Accounts receivable – nonwritten promises to pay Notes receivable – unconditional written promises to pay Nontrade receivables – arise from transactions not directly related to the sale of products or services to customers. Examples include deposits with utilities, advances to subsidiaries,…
receivable–Facsimile Enterprises bonds ($30 million x 12% x 1/12) 0.3 Investment revenue 1.1 Note: Securities held-to-maturity are not adjusted to fair value. Exercise 12-7 Requirement 1 . Net unrealized holding gains and losses—OCI 25,000 Fair value adjustment ($45,000 – 20,000) 25,000 Requirement 2 None. Accumulated net holding gains and losses for securities available-for-sale are reported as a component of shareholders’ equity (in accumulated other comprehensive income),…
information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period. A statement of cash flows reports on a company's cash flow activities, particularly its operating, investing and financing activities. For large corporations, these statements may be complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement…
January 28, 2011 by ningcontent As a Medical Sales Recruiter, I recommend to all my candidates that they create a 30-60-90-day sales plan to present to hiring managers or hiring teams during job interviews for every position in sales, sales management, or marketing for medical sales, healthcare sales, laboratory sales, biotech sales, medical device sales, clinical diagnostics sales, imaging sales, or pharmaceutical sales. Simply put, a 30-60-90-day sales plan is a document that spells out how you will…
Notes to Consolidated Financial Statements Note 1 Business and Summary of Significant Accounting Principles (10 items) Description of Business The Open-Road Motorcycle Company is the largest online retailer of salvage title motorcycles. We are focused on bringing the customer the best value on entry level motorcycles by providing lower prices than our competitors. Our motorcycles are sold all over the United States, and we currently have 30 stores all across the country. Property, Plant…
furniture, car), sales parties (e.g., Tupperware, candles), in-home sales (e.g., knives, vacuums, water purifiers), military recruiters, life insurance sales, etc. You are not required to tell blatant lies about your reason for being there but you should behave as naturally as you can. Exit the situation without buying or committing to anything and immediately write detailed notes about the setting and experience, including the appearance and behavior of the persuasion expert. Note persuasive techniques…
industry Financial Forecasting Process The Financial Forecasting Process contains the following steps: Sales forecast Identify spontaneous assets & liabilities Project Balance Sheet Reconcile Balance Sheet to Income Statement Project Income Statement Simulation Decision made That is we: 1. We forecast sales over the period. Note it is the sales forecast that drives the analysis. The better the forecast, the better your analysis. 2. We identify…
result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to as trade receivables in Alcatel's financial statements. B. How do accounts receivable differ from notes receivable? Notes receivable represent…
Chapter 17 Notes Chapter is about Investments in stock and investment in bonds Two categories on bal. sheet -- current asset long-term Primary accounting questions : 1. Valuation-- historical cost or market value 2. Recognition-- if market value is used, how should gain or loss be recorded Types…