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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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