Estimation of Demand


Potential and forecast are distinct concepts, but they become blurred when estimates of demand are developed. The techniques used to estimate demand differ in their emphasis on the proposed marketing effort. For example some techniques neglect the level of marketing effort and concentrate on the maximum amount of commodity that might be demanded from an industry or company. Estimates produced with the emphasis are closer to being market or sales potential estimates than they are sales forecasts.

Other techniques give great weight to the marketing effort planned for the period and are sales forecasts in the true sense of the word. Still other techniques use historic sales as a basis for future demand estimates. They rely on the implicit assumption that marketing effort in the future period will be similar to what it was in the past.

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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Friendship and Business


Americans like to think of themselves as friendly. Yet others find us impersonal and rushed. We come on too strong too fast; we are intimidating to some foreigners. We then fail to fulfill the implicitly promised friendship; we seem phony. In most parts of the world, friendships are slow to form, requiring tremendous commitment and attention over the long term. Anything less than the gradual and deliberate approach may be seen as insincerity, and insincerity compared to the seriousness with which friendships are taken elsewhere. Once formed, many foreign friendships are virtually permanent. And with the friendship come obligations, not only to help in emergencies, but to help in a number of ways the average American would consider entirely unreasonable.

The importance of relationships strongly affects the conduct of business. The foreigner needs to assess any business associate and most likely will make a deal not purely on the basis of the best price or product but rather on personal estimation. From Italy to China, extra personal involvement is important; many foreigners feel that if both parties can be friends, then business between them will flow naturally and smoothly.

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, Lectures, Line of Sight