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Sales Management:. Budgeting To Assure Success In 2012. Member Response [email protected] 800-232-3131. John Potter VP Training Radio Advertising Bureau. Welcome. PDF of slides will be available Watch your e-mail Check junk mail We appreciate feedback Lines are muted Q & A

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Sales Management:

Budgeting To Assure Success In 2012

  • John Potter

  • VP Training

  • Radio Advertising Bureau


Welcome
Welcome

  • PDF of slides will be available

    • Watch your e-mail

    • Check junk mail

    • We appreciate feedback

  • Lines are muted

    • Q & A

    • Type your message

  • Problems?

    • RAB Member Response

      800-323-3131


What we ll cover
What We’ll Cover

  • Preparation resources

  • Getting started: narrative

  • A process

  • Factors to consider

  • Involving your staff

  • Templates


What s your method
What’s your method?

  • Throwing Darts

  • Fortune Teller

  • Tell Them What They Want to Hear and Hope It Happens


What does corporate want
What Does Corporate Want?

  • How can you give them what they want?

  • Where can you go for help?


Resources
Resources

  • Historical information

    • National revenue

    • Market revenue

    • Revenue by month

    • Revenue by month by advertiser

    • Revenue by month by salesperson

    • Revenue % change

    • Multi-year trends


The process
The Process

  • 24/7/365

  • Preliminary

  • Final


The process1
The Process

Narrative

  • Local economy

  • Advertising

  • Competition

  • Staffing

  • Pricing


The process2
The Process

  • Face the facts

    • You have to do it

    • You have to do it right

    • You have to do it by a deadline

  • Schedule the time

  • Assemble all your tools and resources


Getting started
Getting Started

  • The first step in projecting the future is examining the past

    • 3 year trends

    • YTD

    • % of total by month

  • Pacing numbers to determine current trend

  • Project revenues through end of year


Factors to consider
Factors To Consider

  • Economic environment

  • Advertising environment

  • Competitive environment / station competitiveness

  • Staffing realities

  • Pricing realities


Economic environment
Economic Environment

  • Market Health

  • Employment Conditions

  • Retail sales

  • Where to look…

  • RAB.com

  • Business Journal

  • Chamber of Commerce

  • Online Searches


Advertising environment
Advertising Environment

  • Audit firms

  • Voicetrack

  • Rep reports

  • RAB Revenue Reports

  • RAB Ad-to Sales Report

  • Station audience


Traffic reports
Traffic Reports

  • Pull Top 20, 100, 200

  • Are their revenues increasing or decreasing? Why?

  • 80-20 customers

  • Strategy for retaining/growing existing business

  • Strategy for growing new business


What are your objectives
What Are Your Objectives

  • Sell more clients?

  • Sell current clients more often?

  • Sell at higher rates?


Competitive environment
Competitive Environment

“You can only take care of your own station(s).”


Station competitiveness
Station Competitiveness

  • Ratings

  • Projected ratings

  • Power ratio

  • Market revenue


Competition
Competition

  • Who is your primary competition?

  • Who is getting what shares?

  • Competing media strengths and weaknesses

  • Are there any new competitors? Who?


Staffing realities
Staffing Realities

  • Current skill set and any plans for improvement

  • Projected changes in the staff and your plan to respond

  • New hires or planned new hires

  • Projected staff size

  • Experience vs. Expertise

  • Your recruitment plan


Pricing realities
Pricing Realities

Manage to your goals…


Crunching the numbers
Crunching the Numbers

  • Corporate or self-defined

  • % increase or hard number

  • Criteria

  • Top line (sales) or bottom line (BCF)

  • Cluster or individual station(s)

  • National

  • Local

  • New business

  • NTR

  • Inventory pricing strategy


Budget template
Budget Template

  • 13 columns

  • Back up your work

  • Learn Excel

  • Create line-items

    • Local

    • Regional

    • National

      • On air

      • Alternative Revenue

      • Event

      • Digital


Salesperson s budget
Salesperson’s Budget

  • Account

  • Category

  • Last year’s actual by month

  • Projected billing by month

  • Dollar change

  • % change




Expense budgeting
Expense Budgeting

  • Zero based

  • Justification

  • “Outside the box”

  • Budget for RAB and other training


Other considerations
Other Considerations

  • Market value of 1 share point

  • Projected rating or programming changes for your station(s)

  • Projected rating or programming changes for competing stations

  • Planned promotional and/or marketing initiatives


Staff involvement
Staff Involvement

Your Numbers

For a budget to have a chance of succeeding, your staff has to buy in and take ownership of the numbers

Without their commitment, effort, and perseverance, you cannot achieve the goals

Involving them in the budgeting process sends the message that it is their budget, too

Your Staff Numbers

Combined Input


Staff involvement1
Staff Involvement

Your Numbers

Individual goals should be challenging

Individual goals should be obtainable, with effort

Compensate achievement

Reward over-achievement

Your Staff Numbers

Combined Input


Staff involvement2
Staff Involvement

Your Numbers

Sales people should be responsible for submitting their individual revenue projections to you at the beginning of the budgeting process.

They should include all revenue subsets you are required to submit.

For example, monthly, quarterly, and annual totals, NTR, new business, agency/direct, etc.

Your Staff Numbers

Combined Input


Three approaches to projections by sales people
Three Approaches to Projections by Sales People

  • Sandbagging

  • Pie-in-the-Sky

  • Aim for the Center

In your one-on-one budget meeting with sales people, you have to know which approach they are taking and factor it into your “negotiations” with them. Insist on knowing their rationale and challenge them to explain their fallback plan.


Expenses
Expenses

ROI

If the money is spent, how much return do you estimate from the investment

Bonuses for exceeding goal



Thank you for joining us!

Sales Management:

Budgeting To Assure Success In 2012


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