Baumols sales revenue maximisation:

W. J. Baumol suggested sales revenue maximisation as an alternative goal to profit maximisation. He presented two  basic models: A static single-period model and a multi-period dynamic model of growth of sales revenue maximisation. Each model has two versions, one with advertising activities and another without.   

Baumol offers several justifications for sales maximisation as a goal of the firm. In a modern firm, there is separation of ownership from management. So that the managers can act on their discretion. Generally, the owners want to maximise profit but managers tend to maximise their own utility. Baumol points out from his own experience as a consultant to large number of firms that the utility of managers depends much on the sales, so that sales maximisation is a plausible goal for most of them. He even points out certain reasons as to why sales maximisation is important. Some of them are as follows: 

1) The salaries and other earnings of  top managers are correlated more with sales than with profits. 

2) Banks and other financial institutions generally prefer firms with growing sales.

3) Large growing sales put the firm in a good stead to undertake competitive tactices. It also entails better bargaining power in the market.

4) Large sales, growing over time, give prestige to the managers, while large profits land up with the shareholders.