Concept of Sycro-marketing

The concept of Sycro-marketing is used to manage demand and supply. Sasser suggested some basic to alter demand so as to fit it within the available capacity. In such situations where capacity is restricted, the four strategic options are as follows:

1. Developing off peak pricing schemes
2. Non peak promotion and demand creation
3. Developing complementary services
4. Creation of reservation system

Developing off peak pricing schemes will help in shifting the demand from peak periods to non-peak periods. Resorts and hotels offer off-season packages to shift demand from peak to non- peak seasons.

Developing complementary or facilitating services not only attracts customers away from bottle neck operations at peak times but might also provide an alternative service while they are in queue for capacity related operations. For e.g. at a casino, a lounge with wide screen television or a bar will shift some tourists from restricted capacity service operations. Such a strategy wouldn’t only give additional value but also an opportunity to differentiate the service offer from the competitors.

The reservation strategy would also help in managing demand and thus, customer satisfaction e.g. reservation of cinema tickets in advance.

Managing capacity and controlling the supply side can be done in the following manner:

• Using part time employees: Employing part time employees is one of the solutions to increase capacity. At a resort hotel, local students are engaged at peak seasons to cater to the customers.

• Increasing efficiency of existing personnel involving customers: Training can increase the efficiency of an employee. By training the staff in multiple functions, most employees can be engaged in essential tasks of delivering the service during peak hours and the support tasks are deferred to slack periods

• The third method is that consumers participate in delivery of service and, thereby, lower labor requirements of the producer. E.g. .Self service restaurant

• The fourth method is that of sharing capacity with others rather than creating capacity in-house. E.g. Restaurants are selling branded ice creams rather than investing in ice cream making facilities in- house.

• Lastly the capacity can be increased by investing in expansions so as to cater to the increase in demand.

Although productivity will result in better profitability, quality should not be affected. A proper balance has to be maintained between productivity, standardized quality and customers