Sales Management Vocab 2

The process of planning, controlling, and monitoring how money is spent within a company or department to make sure spending stays within approved limits.

Effective budget management allowed the marketing team to run all their campaigns without exceeding their annual spending limit.

The amount of money left from sales revenue after subtracting variable costs, which contributes to covering fixed costs and generating profit.

By reducing packaging costs, the team was able to increase the contribution margin on each unit sold.

The practice of preventing future expenses from occurring by making smart decisions today, so that money does not need to be spent on something that could have been avoided.

Signing a long-term contract with the supplier was a smart cost avoidance strategy that protected the company from future price increases.

The process of finding ways to lower the amount of money a company spends on operations, production, or other activities without negatively affecting quality or performance.

The factory achieved cost reduction by upgrading its machines to use less energy during production.

The process of controlling how much credit a company gives to its customers, ensuring that payments are collected on time and that the risk of not being paid is minimized.

Strong credit management practices helped the company avoid financial losses by carefully checking each new customer's ability to pay before offering payment terms.

A financial report that shows how much money a company earns and spends when doing business with a specific customer, helping to understand if that customer relationship is profitable.

The sales manager reviewed the customer p&l to decide whether to continue offering discounts to that retailer.

The process of estimating or predicting a company's future financial performance, such as revenue or expenses, based on historical data and market trends.

Accurate financial forecasting helped the company prepare enough stock and staff before the busy holiday season.

The process of increasing the difference between the money a company earns from sales and the direct cost of making or buying those products, resulting in higher profitability.

The company achieved gross margin improvement by finding cheaper suppliers without reducing product quality.

The process of deciding which projects or activities should receive money and resources first, based on their expected value and importance to the business.

Good investment prioritization helped the company focus its budget on the markets with the highest growth potential.

An increase in the total revenue a company earns from selling products or services after subtracting returns, discounts, and allowances, compared to a previous period.

The brand reported strong net sales growth of 12% this year thanks to its successful new product launch.

The process of decreasing the amount of money that customers owe a company and have not yet paid by the agreed deadline, improving the company's cash flow.

The finance team focused on overdue reduction by calling customers with late invoices and setting up structured repayment plans.

The practice of consistently making payments on time according to agreed terms, demonstrating reliability and financial responsibility in business relationships.

The retailer's strong payment discipline made suppliers more willing to offer them better prices and priority service.

An increase in the return on investment, meaning a company is getting more benefit or profit from the money it spends compared to before.

The new digital marketing strategy led to significant roi improvement, with every dollar spent generating twice as much revenue as before.

The process of improving how a company spends money on promotions and support for retailers or distributors so that it gets the best possible sales results for each dollar spent.

Trade investment optimization helped the company redirect funds from underperforming promotions to activities that truly boosted sales.

The process of planning and controlling the money a company spends on discounts, promotions, and incentives offered to retailers or distributors.

Better trade spend management allowed the team to track every promotional discount and ensure they were generating enough return.