Answer to Question #219393 in Management for Prabhdeep

Question

SUBJECT : ADVERTISING AND SALES MANAGEMENT

What are most prevalent strategies for setting sales budget , ELABORATE IN DETAIL IN POINTS ?

Answer 1

Benchmarking

A new company can use the existing companies as benchmarks when preparing a sales budget.

Previous Year Actuals.

The previous year actual sales can be hiked by a certain percentage to come up with the following year sales budget.

Sales History

If a product has been in the market for some time the historical sales figures from competing firms will give good insights when making a sales budget (Koochakpour et al, 2017).

 

References

Koochakpour, K. and Tarokh, M.J., 2017. Designing sales budget forecasting and revision system by using optimization methods. International Journal of Knowledge Engineering and Data Mining, 4(2), pp.93-113.