Prospecting

A BudgetCreating and Managing

Sales Management:www.RAB.comWhat Well CoverPreparation resourcesThe narrativeFactors to considerInvolve your staffTemplates

What Well CoverThrowing Darts Fortune TellerTell Them What They Want to Hear and Hope It Happens

Whats Your MethodWhat Does Corporate Want?How can you give them what they want?Where can you go for help?

What Does Corporate Want?Your FriendYour Friend

ResourcesHistorical informationNational revenueMarket revenueRevenue by monthRevenue by month by advertiserRevenue by month by salespersonRevenue % changeMulti-year trends

ResourcesThe Process24/7/365PreliminaryFinal

The ProcessBudgeting is something we think about all the time anyone here think about where they are to budget over this past weekend? Well go through the steps of budgeting preliminary through final budget.

7The ProcessNarrativeLocal economyAdvertisingCompetitionStaffingPricing

The ProcessBudgeting is something we think about all the time anyone here think about where they are to budget over this past weekend? Well go through the steps of budgeting preliminary through final budget.

8The ProcessFace the factsYou have to do itYou have to do it rightYou have to do it by a deadlineSchedule the timeAssemble all your tools and resources

The Process

Getting StartedThe first step in projecting the future is examining the past3 year trendsYTD% of total by monthPacing numbers to determine current trendProject revenues through end of year

Getting StartedFactors To ConsiderEconomic environmentAdvertising environmentCompetitive environment / station competitivenessStaffing realitiesPricing realities

Factors To Consider

Economic EnvironmentMarket HealthEmployment ConditionsRetail salesWhere to lookRAB.comBusiness JournalChamber of CommerceOnline Searches

Economic EnvironmentAdvertising Environment

Audit firmsVoicetrackRep reportsRAB Revenue ReportsRAB Ad-to Sales ReportStation audience

Advertising EnvironmentTraffic ReportsPull Top 100, 200Are their revenues increasing or decreasing? Why?80-20 customersStrategy for retaining/growing existing businessStrategy for growing new business

Traffic Reports 14What Are Your ObjectivesSell more clients?Sell current clients more often?Sell at higher rates?

What Are Your Objectives15Competitive EnvironmentYou can only take care of your own station(s).

Competitive Environment16Station CompetitivenessRatingsProjected ratingsPower ratioMarket revenue

Station Competitiveness17CompetitionWho is your primary competition?Who is getting what shares?Competing media strengths and weaknessesAre there any new competitors? Who?

Competition18Staffing RealitiesCurrent skill set and any plans for improvementProjected changes in the staff and your plan to respondNew hires or planned new hiresProjected staff sizeExperience vs. ExpertiseYour recruitment planStaffing Realities

Pricing RealitiesManage to your goals

Pricing RealitiesCrunching the NumbersCorporate or self-defined% increase or hard numberCriteriaTop line (sales) or bottom line (BCF)Cluster or individual station(s)NationalLocalNew businessNTRInventory pricing strategy

Crunching the Numbers

Budget Template13 columnsBack up your workLearn ExcelCreate line-itemsLocalRegionalNationalOn airAlternative RevenueEventDigital

Budget Template

Salespersons BudgetAccountCategoryLast years actual by monthProjected billing by monthDollar change% change

Salespersons Budget

Salespersons Budget Prep

Salespersons Budget PrepIncrease Annuals

Increase AnnualsExpense BudgetingZero basedJustificationOutside the boxBudget for RAB and other training

Expense BudgetingFinal TipsMarket value of 1 share pointProjected rating or programming changes for your station(s)Projected rating or programming changes for competing stationsPlanned promotional and/or marketing initiatives

Final TipsStaff InvolvementFor a budget to have a chance of succeeding, your staff has to buy in and take ownership of the numbersWithout their commitment, effort, and perseverance, you cannot achieve the goalsInvolving them in the budgeting process sends the message that it is their budget, tooYour NumbersYour Staff NumbersCombined InputStaff InvolvementStaff InvolvementYour NumbersYour Staff NumbersCombined InputIndividual goals should be challenging Individual goals should be obtainable, with effortCompensate achievementReward over-achievementStaff InvolvementStaff InvolvementSales 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 NumbersYour Staff NumbersCombined InputStaff InvolvementThree Approaches to Projections by Sales PeopleSandbaggingPie-in-the-SkyAim for the Center

Three Approaches to Projections By Salespeople

Final tipLook in the book!

Final TipA BudgetCreating and Managing

Sales Management:www.RAB.com