MARKETING FINANCE

Sales Revenue As an Integral Element of Cost

In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as turnover. Some companies receive revenue from interest, dividends or royalties paid to them by other companies. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time.

Sales Revenue As an Integral Element of Cost

For non-profit organizations, annual revenue may be referred to as gross receipts. This revenue includes donations from individuals and corporations, support from government agencies, income from activities related to the organization's mission, and income from fundraising activities, membership dues, and financial investments such as stock shares in companies.

Sales Revenue As an Integral Element of Cost

Revenue is income received by an organization in the form of cash or cash equivalents. Sales revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers. In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Two common accounting methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or International Financial Reporting Standards

Impact of Marketing
On Society: High Prices Manipulation of Demand High Pressure Selling Cultural Pollution Excessive Political Power Social Rivalry

Impact of Marketing
On Consumer Welfare High Prices Manipulation of Demand High Pressure Selling Shoddy or unsafe products Minority discrimination

DIFFERENT TYPES OF MARKETS

Consumer Goods Market Industrial Goods Market Service Market Social Market

MARKET SEGMENTATION
Territorial - Regional / Geographical Demographic Income / Education / Age / Sex / Language / Race Social Class / Status / Life-style Psychological Attitudes, Values, Behavioral pattern Volume-wise based on buying quantity

MARKET SEGMENTATION
Benefits The seller is in better position to locate his target group & compare market effectiveness. The seller can make finer adjustments of his products and their marketing appeals. Segmentation is the key to economic or costeffective market coverage. By identifying the target customer, it is possible to reduce expensive sales and service time, cut down wasted calls and make advertising and promotion more purposeful.

SALES MANAGEMENT
Two Important Aspects of Sales Management : Sales Policy (Statement of Intention or approach that acts as guiding force in coordinating and directing the activities of the organization as a whole or any functional area.)

SALES MANAGEMENT
Sales Force Management (Determining & reviewing the size of sales-force, Selection & recruitment of sales personnel, Training, development and motivation of sales personnel, Organization of Sales conferences & meetings, Sales Persons Reports, Evaluation of Sales Personnel, Compensation and incentive schemes for sales personnel)

SALES FORECASTING
Forecasting is the identification or prediction of sales expected to occur after a particular period or during a particular time. A) Financial & Semi-Financial Tools 1) Historical Analogy Method. 2) Corresponding Period Comparison 3) End-users / buyers expectation method

SALES FORECASTING
B) Quantitative & Statistical Tools 1) Time Series Analysis (Adjustments for Seasonal & Cyclical Variations) 2) Trend extension or Regression Analysis 3) Multi-variable Analysis 4) Exponential Smoothing 5) Probabilistic Models 6) Input-Output Tables/ Techniques 7) Functional Models 8) Technology Forecasting

SALES FORECASTING
C) 1) 2) 3) 4) Qualitative Methods: Opinions from Experts Brain Storming Delphi Method Scenarios Building

SALES FORECASTING
D) Field Survey (Primary Data) 1) Questionnaire based survey of representative samples, established preferably by stratified Random Sampling Technique 2) Bridging Factor for estimating universe / population from samples 3) Test Marketing

SALES FORECASTING
E) Literature Survey (Secondary Survey) 1) Sales Budget is a realistic estimate of expected volume of sales, both in quantitative & financial terms. 2) Sales Targets are generally set slightly higher levels than the budget figures.