Post 13.14

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M8 – Assignments

This module’s work focuses on Managing Demand/Capacity and Marketing Communications.

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For this module, complete the following.

1. Make your initial post to the class discussion. Note the time frames and due date(s) for later posts, then submit them accordingly.

2. For each chapter covered in this module:
– Review the Chapter Topics, Chapter Objectives and PowerPoint slides.
– Study the chapter in the text/e-text. Make notes, highlight, and review anything that you think might be important.

3. Take the module quiz. You are allowed two attempts. If you use both attempts, your score will be the average of the two.

4. Submit Marketing Journal Posts 13 and 14.

5. If you have not already done so, review the graphical part of the graphical Service Blueprints you were assigned and provide feedback to your peers. This assignment is due Wednesday, July 18.

6. Review the peer feedback and the instructions for the Service Blueprint project. Begin work on Part 2: the written part of your service blueprint for the service you are using in your Service Marketing Journal. The due date for it is Wednesday, July 25 (during Module 9).

Chapter 13 Topics

• The Underlying Issue: Lack of Inventory Capability

• Capacity Constraints

• Demand Patterns

• Strategies for Matching Capacity and Demand

• Yield Management: Balancing Capacity Utilization, Pricing, Market Segmentation, and Financial Return

• Waiting Line Strategies: When Demand and Capacity Cannot Be Matched

• Technology Spotlight: Information and Technology Drive Yield Management Systems

• Global Feature: Cemex Creatively Manages Chaotic Demand for Its Services

• Strategy Insight: Combining Demand (Marketing) and Capacity (Operations) Strategies to Increase Profits

Chapter 13 Objectives

1. Explain the underlying issue for capacity-constrained services: lack of inventory capability.

2. Present the implications of time, labor, equipment, and facilities constraints combined with variations in demand patterns.

3. Lay out strategies for matching supply and demand through (a) shifting demand to match capacity or (b) adjusting capacity to meet demand.

4. Demonstrate the benefits and risks of yield management strategies in forging a balance among capacity utilization, pricing, market segmentation, and financial return.

5. Provide strategies for managing waiting lines for times when capacity and demand cannot be aligned.

Chapter 14 Topics

• The Need for Coordination in Marketing Communication

• Key Service Communication Challenges

• Five Categories of Strategies to Match Service Promises with Delivery

• Technology Spotlight: Grouping Customers Based on Online Activities

• Global Feature: Virgin Atlantic Airways

• Strategy Insight: Google’s Strategy Dominates Web Advertising and Communication

Chapter 14 Objectives

1. Discuss the key service communication challenges.

2. Introduce the concept of integrated service marketing communications.

3. Discuss ways to integrate marketing communications in service organizations.

4. Present specific strategies for addressing service intangibility, managing promises, managing customer expectations, educating customers, and managing internal communications.

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