Sales Management:

1. Sales Management: Budgeting To Assure Success In 2012 • Member Response • member_response@rab.com • 800-232-3131 • John Potter • VP Training • Radio Advertising Bureau

2. Welcome • PDF of slides will be available • Watch your e-mail • Check junk mail • We appreciate feedback • Lines are muted • Q & A • Type your message • Problems? • RAB Member Response 800-323-3131

3. What We’ll Cover • Preparation resources • Getting started: narrative • A process • Factors to consider • Involving your staff • Templates

4. What’s your method? • Throwing Darts • Fortune Teller • Tell Them What They Want to Hear and Hope It Happens

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

6. 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 • 24/7/365 • Preliminary • Final

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

9. 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 • 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 • Economic environment • Advertising environment • Competitive environment / station competitiveness • Staffing realities • Pricing realities

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

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

14. Traffic Reports • Pull Top 20, 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 • Sell more clients? • Sell current clients more often? • Sell at higher rates?

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

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

18. 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 • 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 Manage to your goals…

21. 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 • 13 columns • Back up your work • Learn Excel • Create line-items • Local • Regional • National • On air • Alternative Revenue • Event • Digital

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

26. Salesperson’s Budget Prep

27. Increase Annuals

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

29. Other Considerations • 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

30. 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

31. 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

32. 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

33. Three Approaches to Projections by Sales People • Sandbagging • Pie-in-the-Sky • Aim for the Center In your one-on-one budget meeting with sales people, you have to know which approach they are taking and factor it into your “negotiations” with them. Insist on knowing their rationale and challenge them to explain their fallback plan.

34. Expenses ROI If the money is spent, how much return do you estimate from the investment Bonuses for exceeding goal

35. Questions & Answers

36. Thank you for joining us! Sales Management: Budgeting To Assure Success In 2012 • Tiffiney Wyatt, MBA • Director/Member Response • member_response@rab.com • 800-232-3131 • John Potter • VP/Training • jpotter@rab.com • 800-232-3131