Postponement


Postponement is the delay to the last possible moment of the final formulation or commitment of a product. The most general method which can be applied in promoting the efficiency of a marketing system is the postponement of differentiation for example, to postpone changes in form and identity to the latest point in the marketing flow or to postpone changes in  inventory location to the latest possible time. Minimization of the risk of speculation is achieved by delaying differentiation of the product to the time of purchase. Savings in transportation of goods are achieved because merchandise is moved in larger quantities, in bulk, or in relatively undifferentiated places.

Postponement is the opposite of speculation. A speculative inventory is put into a distribution center whenever the cost of carrying that inventory is less than the profit derived from having that inventory readily available to stimulate purchases.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Communications: Compliance


Compliance results through a power relationship between the participants in the communications process. That is, a receiver complies with persuasive efforts of the source because the source has the power, legitimate or otherwise, to administrator rewards or punishments.

Because the powerful source controls rewards and punishments, he or she can often induce compliance to his or her advocated position. However, compliance is relatively superficial in the sense that a compliant individual does what he or she is forced to do and does not necessarily adopt the complied-to position as a matter of personal desire or preference.

Sales representatives sometimes possesses a degree of power over buyers, especially in a seller’s market where demand exceeds supply and buyers are dependent on their vendors for supplies of raw materials, parts, or merchandise. Purchasing personnel may feel that if they do not comply with a sales representative’s requests, their orders may be delayed or cut off completely.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Handling Delays


In the sales process, especially in the final phases, delays can represent a frustrating gray area that leaves you hanging, wondering whether or not the customer will buy. After you have proposed a solution, one of three outcomes could take place:

  • Decision pending
  • Continuation
  • Stall.

Decision pending is a waiting period in which the decision has not been made. The reason could be that a key decision maker either was not present when the proposal was made or has not yet made up his mind; or that other, more pressing issues have arisen.

Continuation means that the customer seems to be interested in continuing the relationship with you but makes no specific commitment regarding your proposal.

Stall is a situation in which the customer puts you off or seems evasive. A stall usually indicates a hidden objection. Stalls typically occur after you have asked for a commitment. Use the following tactics to handle a stall:

  • Try to find out the real reason for the stall by using your questioning skills.
  • If the customer does not buy, find out why.
  • Get the objections out in the open and handle them, to determine the real reason for not buying.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Delayed Performance


Delayed performance will always justify a claim of damage where it can be shown that loss was occasioned by the delay. Most courts hold, however, that delayed performance will not be a material breach justifying rescission unless performance by a certain date is a condition precedent in the contract. If the late performer has any reasonable excuse for delay, the courts may allow damages but will seldom agree to rescission.

In agreements for the sale of marketable merchandise, however, a contract calling for shipment or other performance within a designated time is generally held to be a condition precedent. The difference between merchandise contracts and other contracts is in the position of the injured parties. A delay of a week in obtaining possession of a new home would not likely be crucial to the average home buyer. But a merchant’s success depends on the prompt delivery of goods to customers. Often advertising and sales programs are scheduled around specific delivery dates. Consequently, a delay in the shipment of merchandise is usually held to be a material breach.

Delay cannot be tolerated indefinitely in any kind of contract, however. After the passage of a reasonable time without performance the courts will permit rescission in almost any kind of contract. What is a reasonable time will vary with the type of agreement and all the surrounding circumstances. If no date is specified in the agreement, the courts interpret this to mean that performance must be done within a reasonable time. When time is of great importance, the contract should always be drafted to read that “time is definitely of the essence in the performance of this contract.”

In a bilateral contract, the injured party cannot regard the other party as being in default until the injured party has offered to perform. In legal circles, this offer by the injured party is called a tender. Depending on the terms of the contract, the tender must be either an offer to pay or an offer to perform a service.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Sensitivity Analysis


Sensitivity analysis allows the impact of different possible outcomes to be evaluated easily. It is sometimes described as ‘what if?’ analysis, because it answers the question ‘what if such and such were to happen?’

Typical outcomes which can be evaluated are:

  • What if development work costs 5% more than forecast?
  • What if the sales launch is delayed by six months?
  • What if sales in the first year are 10% below forecast?
  • What if sales prices are 1% higher or lower than forecast?

Various possibilities can be evaluated to find out which factors will have the greatest impact upon the return to be achieved. This allows management attention to be focused on the most sensitive aspects of the project in an informed way.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Closing the Sale


Closing refers to obtaining a final agreement to purchase. All the salesperson’s efforts are witnessed unless the client “signs on the dotted line;” yet this is where many salespeople fail. It is natural to delay making purchase decisions. But as the time it takes the salesperson to close the sale increases, the profit to be made from the sale goes down, and the risk of losing the sale increases. Consequently, the salesperson’s task is to speed up the final decision. Often, this can best be done by simply asking for an order.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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