Page 279 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes functions or tasks. This is advantageous as an organization can save money and time on training
the new employees and they do not have to bother about excessive manpower when their
business slows down during a slack period. For example, organizations outsource their
recruitment activities to HR consultants.

Share Facilities or Rent Equipment

Another approach that can be adopted by organizations is to share their facilities to meet the
variations in demand.

Example: A school can be rented out to conduct coaching classes to FIITJEE or IMS on
Sunday when the school is closed for students.
Looking at it from another angle, a facility or equipment can be obtained on rent as it is not
feasible to purchase new equipment that would not be used at other times.

Example: A small time caterer might rent large cooking utensils instead of purchasing
them if he gets a big contract for a short period.

Schedule Downtime during Periods of Low Demand

Organizations should schedule their maintenance, repair and renovation activities during periods
of low demand so that the equipment and facilities can be stretched beyond capacity during high
demand periods. This approach should be employed for workers also by giving them time to
relax.

Example: A restaurant can conduct its maintenance work when it is empty at noon so
that the restaurant looks good when customers come in.

Cross-Training Employees

This involves training employees to perform other tasks apart from their routine tasks, so that
underutilization of labour does not take place in the organization. These multi-skilled employees
can be shifted to tasks that are in high demand.

Example: In a salon, employees who are specialised in manicure can be given training
on pedicure so that they can also service those clients in case of heavy demand of pedicure.

Modify Facilities or Move Equipment

Facilities can be modified innovatively during peak or slack demand periods.

Example: During summer holidays in schools, swimming pools can be used as a facility
to coach people in swimming.

On the other hand, some equipment can be moved from place to place to deliver the services at
the consumers’ convenience.

Example: Mobile bill payment option allows a customer to pay the bills through mobile
without having to go to the designated place.

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