Other information related to marketing plan

Sales forecast

A sales forecast refers to determining the quantity of goods or services to be marketed within a provided period of time in future. After analyzing the market, the entrepreneur can understand the demand for his/her product within the target market. There may be a large market for the product. An entrepreneur may not cover the entire market demand at the time of starting up the business. Depending on the strength of his/her business, the entrepreneur can forecast the market share included in such market share.

Example :- The demand for a certain product is 15 000 units per week. The current competitors provide only 12 000 units. Therefore, there is a market gap for 3 000 units. It is the new entrepreneur who should decide whether he/she can supply all 3 000 units or only a part of it.

When making a sales forecast, the expected quantity of sales can be calculated per day, per week, per month, per trimester, per year, etc. It would facilitate the decision making. The forecasted market share should be included in the marketing plan.

Sales income and sales expenses

Sales income

By multiplying the number of units to be sold by the expected selling price, we can calculate the sales income.

Sales expenses

All expenses incurred in marketing the goods or service are taken under sales expenses.

Example :-

Salaries and wages for Marketing managers and staff.
Expenses related to sales outlets such as rental, maintenance, electricity, water, insurance, etc.
Office expenses such as telephone charges, stationery, etc.
Publicity and promotion-related expenses Depreciation for fixed assets such as sales vehicles, office equipment in the Sales Department, etc.

As indicated above, the forecasted data regarding the total sales income and expenditure should be included in the marketing plan.

Marketing fixed assets

These are the fixed assets that are directly relevant to the sales and distribution activities of the business.

Example :- Land and buildings, machinery, equipment, vehicles, office tools and furniture, etc. which are used in sales and distribution-related activities.


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