Estimating, Planning, and Forecasting

Abstract

Sales happens only where there is a potential market for the product. There are various ways of estimating the market size. One organization in India has made an estimate of the relative potential of the geographical units in the country. In addition, they have estimated the degree of media exposure of these units as well as the concentration of purchasing power of the population of those areas. The sales and marketing team can draw up their strategies based on these three indices. Similar estimates are available in many countries of the world. The sales team has to also understand the economic structures of the market and then go through the budgeting process. This budgeting process or the sales and marketing plans are very crucial to the organization as this is the blueprint for the progress of the organization. In order to ensure the smooth functioning of the organization, sales forecasting has to be done. This process ensures proper coordination of multiple functions within the organization – and ensures smooth flow of products from manufacturing to the market. The sales team has to make this forecast on the basis of their territories and the quota of sales allocated to them. Territories are formulated to ensure better administration of the field sales force and the quota system helps the sales team to work towards a goal.