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M Com 2nd Year Advertising Sales Management Study Material Notes

M Com 2nd Year Advertising Sales Management Study Material Notes


Different methods of sales forecasting have been explained by different authorities in the field of marketing. Important methods of sales forecasting may be explained as under:

1. Survey of Consumers’ Opinion Methods. Under this method of sales forecasting, the buyers of a product are contacted and the efforts are made to know the quantity which they intend to purchase in future Total sales forecasts of the products are estimated by combining thi response of the consumers.

2. Executives Judgment or Jury of Executives Opinio! Method. Under this method of sales forecasting, forecasts are made ou the basis of knowledge and experience of marketing executives of the enterprise. Under this method, a seminar is organised and all the executives of the enterprise participate in this seminar. The opinions all the executives of the enterprise regarding demand of the product of the enterprise are collected and forecasts are determined on the basis of such opinion.

3. Experts Opinion Method. Under this method of sales forecasting, the opinions of experts in the field of marketing are collected and forecasts for the sales of the enterprise are made on the basis of such opinion. The opinions to be collected under this method may be from wholesalers, retailers, distributors, newspapers, journals ani professional experts.

4. Market Test Method. This method of sales forecasting is quite different from other methods of forecasting. This method is most suitable for the sales forecasting of a new product. Under this method, som certain segments are selected and the product is introduced in thesis segments only. The results of sales in these segments are collected and analysed and on the basis of these results, sales forecasts are made for the whole market.

5. Trend Analysis Method. Under this method of sales forecasting the past data of sales of the enterprise are analysed and trend 1 established. Forecasts for the future are made on the basis of this trends

6. Composites of Sales Force Opinion Method. Under the method technique of sales forecasting, the views and opinions of all the salesmen and sales executives of the enterprise are collected. Sale forecasts of the enterprise are made on the basis of analysis an interpretation of these opinions and views


Both planning and organisation of sales territories and quotas are of vital significance for giving direction to the managerial efforts and use of information for planning and controlling sales operation. A Sales territory is a geographical area which represents a market or market segment composed of consumers, industries, institutions, farmers and others, all of which need the seller’s products and/or services and have the buying power to satisfy their needs.

Market of every business; and industrial enterprise is different. It may be local, it may be a state, it may be interstate or it may also be international. It depends upon many factors, such as-Size of the enterprise itself, Quantity of production, Quality of products, Nature of products, Number of customers, etc. If the market of a business and industrial enterprise is quite large, it is generally divided into a number of segments, so that the activities of Distributors, Dealers, Agents and Salesman etc. may be properly checked and controlled. Division of a market into different segments is known as determination of sales territories. The term ‘Sales Territory’ has been defined by some eminent scholars as under:

Moynard and Dairs, “Sales Territory is the basic unit of sales planning and sales control

Philip Kotler, “By Sales Territory is a geographical area containing present and potential customers who can be effectively and economically served by a single salesman, branch, dealer or distributor.”

On the basis of analytical study of above definitions, it can be concluded that sales territory means the geographical area of present and potential customers which is chosen or determined by a manufacturer for the purpose of economical, effective and efficient sales of his products. Thus, a sales territory is a geographical area determined for the convenience of sales planning and control.

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