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A Budget

Sales Management:. Creating and Managing. A Budget. What We’ll Cover. What We’ll Cover. Preparation resources The narrative Factors to consider Involve your staff Templates. What’s Your Method. Throwing Darts Fortune Teller Tell Them What They Want to Hear and Hope It Happens.

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A Budget

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  1. Sales Management: Creating and Managing A Budget

  2. What We’ll Cover What We’ll Cover • Preparation resources • The narrative • Factors to consider • Involve your staff • Templates

  3. What’s Your Method • Throwing Darts • Fortune Teller • Tell Them What They Want to Hear and Hope It Happens

  4. What Does Corporate Want? What Does Corporate Want? • How can you give them what they want? • Where can you go for help?

  5. Your Friend Your Friend

  6. 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

  7. The Process The Process • 24/7/365 • Preliminary • Final

  8. The Process The Process Narrative • Local economy • Advertising • Competition • Staffing • Pricing

  9. The Process 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

  10. 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

  11. Factors To Consider Factors To Consider • Economic environment • Advertising environment • Competitive environment / station competitiveness • Staffing realities • Pricing realities

  12. Economic Environment Economic Environment • Market Health • Employment Conditions • Retail sales • Where to look… • RAB.com • Business Journal • Chamber of Commerce • Online Searches

  13. Advertising Environment Advertising Environment • Audit firms • Voicetrack • Rep reports • RAB Revenue Reports • RAB Ad-to Sales Report • Station audience

  14. Traffic Reports Traffic Reports • Pull Top 100, 200 • Are their revenues increasing or decreasing? Why? • 80-20 customers • Strategy for retaining/growing existing business • Strategy for growing new business

  15. What Are Your Objectives What Are Your Objectives • Sell more clients? • Sell current clients more often? • Sell at higher rates?

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

  17. Station Competitiveness Station Competitiveness • Ratings • Projected ratings • Power ratio • Market revenue

  18. Competition Competition • Who is your primary competition? • Who is getting what shares? • Competing media strengths and weaknesses • Are there any new competitors? Who?

  19. 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

  20. Pricing Realities Pricing Realities Manage to your goals…

  21. 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

  22. Budget Template Budget Template • 13 columns • Back up your work • Learn Excel • Create line-items • Local • Regional • National • On air • Alternative Revenue • Event • Digital

  23. Salesperson’s Budget Salesperson’s Budget • Account • Category • Last year’s actual by month • Projected billing by month • Dollar change • % change

  24. Salesperson’s Budget Prep Salesperson’s Budget Prep

  25. Increase Annuals Increase Annuals

  26. Expense Budgeting Expense Budgeting • Zero based • Justification • “Outside the box” • Budget for RAB and other training

  27. Final Tips Final Tips • 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

  28. 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

  29. Staff Involvement 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

  30. Staff Involvement 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

  31. Three Approaches to Projections By Salespeople Three Approaches to Projections by Sales People • Sandbagging • Pie-in-the-Sky • Aim for the Center

  32. Final Tip Final tip Look in the book!

  33. Sales Management: Creating and Managing A Budget

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