- **Definition of Advertising**: The term "advertising" originates from the Latin word "advertere,"

meaning to consult or bring attention to something. It involves promoting products to consumers

through various platforms.

- **Purpose of Advertising**: Advertising serves to inform the public about products and services,
aiming to capture consumer attention and influence purchasing decisions.

## Types of Advertising

- **Informative Advertising**: This type provides information about new products or features of
existing products, aiming to create brand awareness.

- **Persuasive Advertising**: It attempts to persuade consumers to purchase a product by

highlighting its benefits and creating a positive image.

- **Reminder Advertising**: This type serves to remind consumers about products they have
previously purchased, encouraging repeat purchases.

## Advertising Management

- **Management Activities**: Advertising management involves planning and executing advertising

strategies, including selecting media channels and creating content.

- **Target Market Communication**: Effective advertising management ensures that the right
messages reach the intended target audience through appropriate channels.

## Advertising Channels

- **Print Advertising**: Utilizes newspapers and magazines to reach consumers.

- **Broadcast Advertising**: Involves television and radio to disseminate advertisements.

- **Digital Advertising**: Includes internet-based advertising, such as social media and online videos.

- **Outdoor Advertising**: Utilizes billboards and other outdoor media to capture consumer
attention.

Key Objectives of Advertising

Advertising serves multiple purposes, from introducing products to building brands. Below are its
major objectives:

1) Introducing a Product

• Used to launch new products in the market.

 • Helps both new and existing brands.

• Example: Apple and Samsung advertise heavily when launching new smartphones.

2) Introducing a Brand

• Important for startups and service-based businesses.

• Focuses on promoting the brand rather than a specific product.

• Example: Uber advertises its brand when entering a new market instead of promoting just
one service.

3) Creating Awareness

• Helps attract attention and inform consumers about products and services.

• Common in banking, finance, and insurance industries.

• Example: Bank ads that highlight the benefits of savings accounts, mutual funds, or credit
cards.

4) Acquiring Customers & Brand Switching

• Encourages customers to switch from competitors.

• Often done by offering better deals or strong brand messages.

• Example: Telecom companies advertising new data plans to attract users from rival brands
(e.g., Vodafone’s Zoozoo campaign).

5) Differentiation & Value Creation

• Helps a brand stand out from competitors by highlighting unique features and promises.

• Builds customer trust and loyalty.

• Example: Coca-Cola, Toyota, and Amazon use advertising to emphasize their unique brand
value.

6) Brand Building

• Strengthens brand reputation through consistent advertising and quality service.

• Uses various marketing strategies like ATL (Above the Line) and BTL (Below the Line)
advertising.

• Example: Companies like Coca-Cola and Toyota use long-term campaigns to build strong,
trusted brands.

Advertising is essential for businesses to grow, attract customers, and create a strong market
presence.

Functions of Advertising (In Simple Words)

Advertising is a key marketing activity that helps businesses promote their products and grow. Here
are its main functions:
1. Boosts Sales – Advertising informs and persuades people to buy products, increasing sales in
both local and global markets.

2. Introduces New Products – Businesses use advertising to introduce new products to the
public and create awareness quickly.

3. Builds a Good Reputation – Advertising helps a company build a strong public image by
highlighting its achievements and customer satisfaction.

4. Encourages Large-Scale Production – When businesses know they can sell more due to
advertising, they produce goods in larger quantities, reducing costs.

5. Promotes Research & Development – Companies invest in research to create better

products and stand out in a competitive market.

6. Educates Consumers – Advertisements teach people about new products, their uses, and
benefits, improving their lifestyle and knowledge.

7. Supports Media (TV, Newspapers, Magazines) – Advertisers pay for space in newspapers,
magazines, and TV, helping media companies earn money and keep prices low for readers
and viewers.

Role of Advertising in Marketing Mix

The marketing mix consists of four essential variables, known as the 4Ps:

• Product

• Price

• Promotion

• Place

In addition to these traditional 4Ps, other important variables include:

• Packaging

• Positioning

• Pace

Advertising is a crucial component of promotion, playing a key role in influencing consumer

decisions.
 1. Advertising and Product

A product consists of various physical attributes such as quality, shape, size, color, and
features.

• Some products require careful handling and operations, making it essential to inform and
educate consumers.

• Advertising serves as an effective tool to provide information and educate buyers about the
product’s use, benefits, and features.

2. Advertising and Price

Price represents the exchange value of a product.

• A marketer may introduce a high-quality product with advanced features compared to

competitors.

• Advertising helps in justifying the price by convincing customers of the product’s superiority,
benefits, and value for money.

3. Advertising and Place

Place refers to the distribution channels and locations where a product is available.

• Advertising supports effective distribution and market expansion by informing customers

where they can buy the product.

• It plays a significant role in enhancing accessibility and increasing demand.

4. Advertising and Promotion

Promotion includes various activities such as advertising, publicity, personal selling, and
sales promotions.

• Advertising helps businesses by:

 o Presenting the seller’s claims effectively.

o Countering competitors’ claims.

o Building brand image and customer loyalty.

5. Advertising and Pace

Pace refers to the speed of marketing decisions and actions.

• In today’s fast-paced market, brands must launch new products and variations quickly.

• Advertising plays a critical role in introducing, informing, and persuading customers to try
new products.

6. Advertising and Packaging

Packaging is designed to protect the product, maintain quality, and enhance visual appeal.

• Many brands use attractive and informative packaging as a form of advertising.

• Packaging builds brand recognition, consumer trust, and confidence.

7. Advertising and Positioning

Product positioning helps in creating and maintaining a distinct image of the brand in
consumers' minds.

• Advertising communicates the unique selling proposition (USP) and desired brand
perception.

• Effective advertising influences consumer preferences and buying decisions.

Would you like any modifications or further explanations?

Process of Advertising (Simplified)

1. Briefing – The client and advertising agency agree on key details like what to
advertise, the goal, budget, and strategy.
2. Market Research – The agency studies competitors, customer opinions, and how
other ads perform.
3. Identify Target Audience – Based on research, they decide who the ad should reach.
4. Media Selection – They choose the best platforms (TV, social media, etc.) to reach
the audience cost-effectively.
5. Ad Creation – Writers and designers create the ad using words, images, and videos.
6. Decide Place & Time – The agency plans when and where the ad will be shown.
7. Execution – The ad is launched on the chosen platforms.
8. Performance Check – The agency monitors the ad’s success and makes
improvements if needed.
Social , economical,legal,ethical aspects of
advertising :
Advertising influences society in many ways. Let's break it down into social, economic,
ethical, and legal aspects in simple terms:

1. Social Aspects

• Advertising shapes people's thoughts, behaviors, and lifestyles.

• It can spread awareness about important social issues (e.g., anti-smoking campaigns).
• Sometimes, it promotes unrealistic beauty standards or materialism.

2. Economic Aspects

• Helps businesses grow by attracting customers, increasing sales, and creating jobs.
• Encourages competition, leading to better products and services.
• Can increase consumer spending, boosting the economy.

3. Ethical Aspects

• Advertisements should be honest and not mislead consumers.

• Promoting harmful products (like alcohol to minors) is unethical.
• Exploiting emotions or fears to sell products can be questionable.

4. Legal Aspects

• Governments set rules to prevent false advertising and protect consumers.

• Some ads are banned (e.g., cigarette ads in many countries).
• Companies must follow laws regarding copyright, trademarks, and privacy.

In short, advertising is powerful and can be beneficial, but it must be done responsibly!

UNIT-2

1. Determination of Target Audience

What is a Target Audience?

• It's the specific group of people most likely to buy your product or service.
• Your advertisements are made for them.
• They are selected based on factors like:
o Age
o Gender
 o Income
o Location
o Interests
o Lifestyle

Target Market vs Target Audience:

• Target Market: Broad group of people your business wants to sell to.
• Target Audience: A smaller, more focused group inside that market, who actually
see the ad.

Example:
Target Market – All marathon runners.
Target Audience – Runners participating in the Boston Marathon.

How to Determine Your Target Audience:

1. Analyze Current Customers

o Who’s already buying from you?
o What do they like/dislike?
2. Conduct Market Research
o Look at gaps in the market that your product can fill.
3. Study Competitors
o See who they’re targeting and how.
4. Create Buyer Personas
o Fake profiles that represent your ideal customers (like “Sneha the Student” or
“Ravi the Techie”).
5. Define Who Not to Target
o Helps avoid wasting money on uninterested groups.
6. Keep Revising
o Use new data to update your audience profile.
7. Use Google Analytics & Other Tools
o To track website visitors, traffic sources, behaviors, and more.

ADVERTISING MEDIA TYPES:-

Advertising Media & Its Types (Detailed Explanation)

Advertising Media refers to the different communication channels used by businesses to

promote their products, services, or brand to a target audience. The choice of media depends
on factors like target market, budget, and type of product.

Types of Advertising Media:

 1. Print Media
o Includes newspapers, magazines, brochures, leaflets, and flyers.
o Used for detailed information and local/national advertising.
o Example: A clothing brand advertising in a fashion magazine.
2. Broadcast Media
o Covers television and radio advertisements.
o Has a wide reach and is effective for creating brand awareness.
o Example: A soft drink brand running a TV commercial during a sports event.
3. Digital Media (Online Advertising)
o Includes social media ads, Google ads, email marketing, and influencer
marketing.
o Cost-effective and allows targeted advertising based on user behavior.
o Example: A mobile phone brand advertising on Facebook and Instagram.
4. Outdoor Media (Out-of-Home Advertising)
o Includes billboards, posters, hoardings, banners, and transit ads (on buses,
taxis, trains).
o Effective for high visibility and brand recall.
o Example: A movie promotion on a billboard in Times Square.
5. Direct Mail Advertising
o Promotional materials like catalogs, brochures, and postcards sent directly to
customers.
o Personalized and effective for customer engagement.
o Example: A bank sending credit card offers to potential customers by mail.
6. Product Placement
o Brands showcase their products in movies, TV shows, or web series.
o Subtle yet effective marketing technique.
o Example: A character in a movie using a specific laptop brand.
7. Event Sponsorship
o Companies sponsor events like sports tournaments, concerts, and exhibitions
to promote their brand.
o Helps in gaining publicity and brand association.
o Example: A car brand sponsoring an international football tournament.

Each type of advertising media has its own benefits depending on the business objectives and
target audience. Let me know if you need more details!
Great! Here's a detailed explanation of Factors Governing the Choice of Advertising
Media, which is a crucial part of Unit 2 in Advertising and Sales Management:

Factors Governing Media Choice

Choosing the right media for advertising is critical because it directly affects how well the
target audience receives your message. Several factors influence this choice:

1. Nature of the Product

• Different products need different types of media.

• Mass-consumption products (e.g., soft drinks, soaps) require mass media like TV,
newspapers, or social media to reach a wide audience.
• Technical or complex products (e.g., machinery, electronics) may require detailed
print ads or demonstrative video ads (like on YouTube or trade shows).
 • Luxury goods may benefit from magazines or high-end TV channels that cater to
elite customers.

Example: A new smartphone might be shown on TV and YouTube, but a new industrial
tool might be advertised in a business magazine.

2. Potential Market (Target Audience)

• Know who you’re advertising to:

o Age
o Gender
o Income level
o Education
o Location
o Interests

Choose a medium that reaches your specific audience best.

Example:
If you're advertising toys, choose cartoon channels or YouTube Kids.
If targeting farmers, go with regional radio or agriculture-focused magazines.

3. Type of Distribution Strategy

• There’s no point in advertising a product in an area where it's not available.

• Your media choice should align with where your product is distributed.
• If it's a local product, use local newspapers, radio, or outdoor ads.
• For national reach, go with TV, social media, or national dailies.

4. Advertising Objectives

• What do you want to achieve?

o Awareness?
o Interest?
o Immediate action?
o Brand reinforcement?

Objective-based media selection:

• For awareness: TV, outdoor, digital ads.

• For engagement: Social media, YouTube.
• For direct action: SMS, email, Google Ads, coupons in newspapers.
 5. Budget Available

• Media selection heavily depends on how much money you can spend.
• TV ads are costly but reach millions.
• Print and radio are cheaper but limited in reach.
• Digital ads offer flexibility (you can start with ₹100/day).

Example: A startup might prefer Facebook or Instagram ads over expensive newspaper
spreads.

6. Competitive Advertising

• Watch what your competitors are doing.

• If they’re using a particular medium successfully, consider whether you can match or
outdo them.
• However, don’t blindly copy. Your strategy should fit your brand.

7. Media Availability

• Sometimes, desired media slots are booked, especially during festive seasons or
elections.
• Not all media are available in all areas (e.g., high-speed internet isn’t everywhere, so
digital ads may not reach rural audiences).

8. Characteristics of Media

Each medium has different traits, such as:

Characteristic Explanation
Coverage How many people it can potentially reach
Reach How many people it actually reaches
Cost Cost per reach or impression
Frequency How often the ad can be repeated
Consumer Some media are more credible (e.g., national newspapers vs. pop-up
Trust online ads)

Choose media that match your campaign’s goals in terms of these factors.
 9. Message Requirements

• Some ads need visual demonstration (e.g., cosmetics, food), so TV or video is better.
• Some need detailed info (e.g., insurance plans), so print or website content is ideal.

10. Legal and Ethical Considerations

• Ads for alcohol, tobacco, gambling, etc. have restrictions.

• You cannot air them on national TV or radio in some countries.
• Such products often rely on indirect branding or event sponsorships.

Summary Table

Factor Media Example

Nature of product TV for mass products, Magazines for luxury
Target market Regional radio for farmers, Social media for youth
Distribution Local ads for local markets
Objective Coupons for sales, TV for awareness
Budget FB ads for low cost, TV for high cost
Competition Match or innovate against competitors
Availability Pre-book TV/radio slots during festivals
Media traits Choose high reach + frequency for new launches
Message Video for demos, print for technical info
Legal limits Alcohol ads via events, not TV

Let me know if you’d like this turned into a PDF summary or revision flashcards. Would
you like to go over Advertising Effectiveness next?

Advertising Effectiveness

What Is It?

• It tells you how well your ad is working.

• Are people seeing it? Responding to it? Buying the product?

Why Measure It?

• To see if your money is well spent

• Helps in planning future campaigns
 • To evaluate and improve messaging
• Identify best-performing markets

Types of Measurement

A. Direct Measures
These show a direct link between ads and sales:

• Historical Sales Method: Compare past sales with current sales after ads.
• Experimental Control: Test ads in some cities and not in others.

B. Indirect Measures
Focus on customer response, not just sales:

• Exposure: Did people see the ad?

• Recall: Can they remember it?
• Comprehension: Did they understand it?
• Brand Awareness: Are they now aware of your brand?
• Attitude Change: Do they like your brand more now?
• Action: Did they visit your store, call, or buy the product?

5. Advertising Layout

What is Ad Layout?

• The visual design of your ad (placement of text, images, logo, colors).

Functions of Layout:

1. Combines all ad elements (headline, image, copy, logo, etc.)

2. Allows for pre-approval and changes before publishing
3. Helps in estimating cost
4. Acts as a guide for copywriters and designers
5. Makes the ad visually appealing and easy to read

6. Advertising Appeals

What are Ad Appeals?

• These are emotional or logical reasons given in the ad to influence the customer.

Characteristics:

• Believable
• Meaningful
 • Unique

Types of Appeals:

Appeal Type Description

Rational Logic and facts – features, price, value
Emotional Feelings like love, happiness, sadness
Fear Warning of danger (e.g. smoking kills)
Humor Makes people laugh and remember the ad
Sex Appeal Attracts attention through sensual imagery
Scarcity “Limited offer” to create urgency
Music Uses catchy tunes to make ads memorable
Social Encourages people to "fit in" or be accepted
Bandwagon “Everyone is using it” appeal
Adventure Appeals to the thrill-seeking nature of people
Brand Appeal Shows trust and popularity of a brand

UNIT 3 – Message Design and Development

1. Message Design

What is Message Design?

• Message design is the process of crafting the content of an advertisement to

communicate effectively with the target audience.
• It involves planning, creating, and structuring the message to achieve
communication goals like brand awareness, product promotion, or customer
engagement.

Good messages are:

• Simple
• Memorable
• Clear
• Emotionally appealing
• Culturally relevant

Elements of Message Design:

 1. Audience Understanding
o Know who you're talking to (demographics, lifestyle, preferences, behavior).
2. Communication Objectives
o Decide what you want to achieve: awareness, sales, brand image, etc.
3. Key Message Development
o Highlight the main point (e.g., “Our phone charges in 10 minutes!”).
o Show USP – Unique Selling Proposition.
4. Creative Elements
o Language, tone, visuals, colors, music – all should match the brand identity.
5. Media Selection
o Choose platforms (TV, print, online, etc.) where the message will be shown.
6. Consistency Across Platforms
o Keep the message tone, style, and idea consistent everywhere (print, TV,
social media).
7. Adaptation for Different Platforms
o Change message format based on medium (short text for Twitter, video for
Instagram).

2. Advertisement Copy Testing

What is Copy Testing?

• It is the evaluation of an ad’s effectiveness before, during, or after it runs.

• Helps find out if the ad communicates well and connects with the target audience.

Why Do Copy Testing?

• To improve ad quality
• To avoid wasting money on weak ads
• To check audience reaction before mass release

Techniques of Copy Testing

A. Pre-Test Methods (Before the ad is launched)

1. Checklist Method
o Compare the ad against a list of important features.
2. Consumer Jury Method
o Show sample ads to a group of target customers and collect feedback.
3. Sales Area Test
o Run the ad in a small area and observe sales results.
4. Questionnaire Method
o Send questions along with the ad draft to get feedback.
5. Recall Test
o Ask people to recall what they saw in the ad after a short delay.
 6. Reaction Test
o Measure emotional response (heart rate, pupil dilation, etc.).
7. Readability Test
o See how easy the ad is to read for different audiences.
8. Eye Movement Test
o Track which part of the ad people look at first.

B. Post-Test Methods (After the ad is released)

1. Recognition Test
o Ask people if they recognize the ad from a magazine or paper.
2. Recall or Impact Test
o Measure what people remember about the ad and the brand.
3. Psychological Analysis
o Tests include:
▪ Readability & Comprehension
▪ Believability
▪ Attitude Change
▪ Triple Association Test (brand, message, theme recall)

C. Concurrent Methods (While the ad is being shown)

1. Consumer Diaries
o Selected people keep a diary of ads they see and their thoughts.
2. Coincidental Surveys
o Call people while the ad is on-air to ask if they're watching it.
3. Electronic Devices
o Use tools like people meters to track ad exposure.

3. Managing Advertising Agency–Client Relationship

A healthy relationship between a client (advertiser) and an ad agency ensures successful ad

campaigns and long-term partnerships.

Why It Matters:

• Better collaboration = Better advertising.

• Reduces misunderstanding and delays.
• Increases efficiency and creativity.
 Tips for Both Client & Agency:

A. Suggestions for Both:

• Maintain open communication.

• Build mutual trust and respect.
• Use a give-and-take approach.

B. Guidelines for Clients:

1. Treat agency respectfully.

2. Share full product info.
3. Don’t argue over small costs.
4. Pay agency on time.
5. Avoid switching agencies frequently.
6. Approve campaigns timely.
7. Avoid giving unrealistic deadlines.
8. Resolve issues calmly.
9. Agree on charges beforehand.

C. Advice for Agencies:

1. Work hard to deliver results.

2. Get approval before launching any campaign.
3. Keep the client informed.
4. Be transparent with team details and costs.
5. Don’t work with direct competitors.
6. Provide regular updates.
7. Keep promises and deadlines.
8. Never hurt client’s image or ego.

Absolutely! Here's a complete and easy-to-understand version of UNIT 4: Personal Selling

and Control Process from your Advertising and Sales Management syllabus (BBA 3rd
Year):

UNIT 4 – Personal Selling and Control Process

 1. Personal Selling

Definition:

• Personal selling is face-to-face communication between a salesperson and a potential

customer with the aim of making a sale.
• It involves interpersonal skills, such as persuasion, relationship building, and
problem solving.

Also called: One-on-one selling or Direct selling

Importance of Personal Selling

Reason Explanation
Flexible Message Seller can adapt the message based on customer’s response.
Targeted
Only serious buyers are approached—no waste.
Communication
Effective Sales Tool Builds trust, demonstrates product, and closes deals.
Advertising creates interest, but personal selling clears doubts
Supports Advertising
and motivates purchase.
Seller gets instant feedback on customer preferences and
Customer Feedback
objections.
Educates Consumers Salesperson explains product features, usage, and benefits.
Creates Employment Offers job opportunities to many (sales reps, agents, etc.).

Role of Personal Selling in Promotion Mix

• Complements advertising, sales promotion, and publicity.

• Ideal for high-value or complex products (insurance, real estate, B2B equipment).

2. Methods and Procedure of Personal Selling

Personal Selling Process (also called Sales Process):

1. Prospecting
o Finding potential customers (also known as leads).
2. Pre-approach
o Collecting information about the customer before the actual meeting.
3. Approach
o First contact or meeting with the prospect (in-person, call, etc.).
4. Presentation & Demonstration
 o Explain product features and benefits.
o Demonstrate the product if needed.
5. Handling Objections
o Answering questions or concerns raised by the customer.
6. Closing the Sale
o Finalizing the sale (asking for the order, negotiation, paperwork).
7. Follow-Up
o Ensuring customer satisfaction, solving any post-sale problems, and
maintaining relationships.

3. Control Process in Sales Management

Controlling in sales means evaluating performance and ensuring that the sales team is
achieving the company’s goals.

Key Areas of Sales Control

1. Analysis of Sales Volume

• Check how much was sold over a time period (daily, monthly, quarterly).
• Compare with targets or past data.

2. Analysis of Costs and Profitability

• Look at selling costs (salaries, travel, ads) vs profits.

• Helps to find:
o Most profitable products
o Efficient sales territories
o Top-performing salespeople

3. Managing Sales Expenses

• Keep track of:

o Travel
o Food
o Accommodation
o Communication
• Set expense limits for sales reps.

4. Evaluating Sales Force Performance

• Analyze:
o Sales targets achieved
o Conversion rates (leads to customers)
 o Customer feedback
o Discipline, punctuality, and reporting habits

Tools Used: Sales reports, CRM systems, customer surveys, feedback forms.

Summary
Topic Key Points
Personal
Direct, one-on-one sales communication
Selling
Importance Flexible, targeted, informative, interactive
Prospecting → Approach → Presentation → Objection Handling →
Sales Process
Closing → Follow-Up
Sales Control Tracks sales volume, expenses, profit, and staff performance

UNIT 5 – Sales Organization and Sales Planning

1. Sales Organization

Definition:

Sales organization refers to the structure and process by which a business manages its sales
activities, salespeople, and resources to achieve its sales goals efficiently.

It’s basically how a company sets up its sales team, assigns territories, defines roles, and
manages sales operations.

Setting Up a Sales Organization:

When building a sales organization, a company must consider:

1. Size of the Company

2. Nature of Products
3. Geographical Market
4. Sales Strategy
5. Number of Salespeople
 Planning Process in Sales Organization

Steps:

1. Set Clear Objectives

o e.g., increase market share, expand to new regions, raise sales revenue.
2. Organize Sales Structure
o Decide whether to organize by region, product line, customer type, etc.
3. Assign Sales Territories
o Divide the market into manageable areas for each salesperson.
4. Define Roles & Responsibilities
o Who handles what? (E.g., territory manager, product specialist, etc.)
5. Develop Training Programs
o Train new salespeople to understand the product and market.
6. Set Control Mechanisms
o Set KPIs (Key Performance Indicators) and monitor performance.

Principles of a Good Sales Organization:

• Clarity in roles
• Effective coordination
• Balanced workload
• Good supervision
• Growth opportunities for sales staff
• Adaptability to changes

2. Sales Planning

Importance of Sales Planning:

• Sets clear goals and direction.

• Helps forecast future sales.
• Ensures efficient resource use.
• Supports budgeting and territory decisions.
• Improves team motivation and performance.
• Reduces business risk and uncertainty.

Types of Sales Planning:

 Type Description
Short-term Sales
For weekly/monthly sales activities and targets.
Plan
Medium-term Plan Covers a quarter to a year. Focuses on achieving yearly targets.
Strategic goals for 2–5 years. Includes market expansion, brand
Long-term Plan
building.

Sales Planning Process:

1. Market Analysis
o Study customer needs, competition, and industry trends.
2. Set Sales Objectives
o Decide what to achieve in terms of units sold, revenue, or market share.
3. Sales Forecasting
o Estimate future sales based on past trends and market research.
4. Determine Sales Territories
o Divide regions among salespeople based on potential and ease of access.
5. Set Sales Quotas
o Assign individual or team targets (e.g., “sell 500 units this month”).
6. Sales Budgeting
o Plan how much to spend on sales activities (travel, salaries, events, etc.).
7. Implementation
o Execute the plan using available resources and personnel.
8. Monitoring and Control
o Track performance and make corrections if needed.

Key Concepts:
Sales Forecasting

• Predicting future sales using:

o Past data
o Market surveys
o Expert opinions
o Statistical tools

Sales Territory

• A geographical or customer-based zone assigned to a salesperson.

• Helps in managing workload and avoiding overlap.

Sales Quota

• A target given to a salesperson or sales team for a specific time period.

 • Based on region, product, or total revenue.

Sales Budget

• A financial plan showing the expected costs for sales operations.

• Includes: salesperson salaries, travel, promotional expenses, etc.

Summary Chart
Concept Meaning
Sales Organization Setting up and managing the sales team structure
Sales Planning Creating a detailed plan to achieve sales goals
Sales Forecasting Estimating future sales
Sales Territory Area or group of customers assigned to a salesperson
Sales Quota Target assigned to a salesperson/team
Sales Budget Estimate of sales-related expenses