Service differentiation is one of the popular strategies used to compete in a no demand situation in the market.
Latent demand:At any given time it is impossible to have a set of services that offer total satisfaction to all the needs and wants of society.
There is always a search on for better and newer offers to fill the gap between desirability and availability.
Seasonal demands create many problems to service organizations, such as: idling the capacity, fixed cost and excess expenditure on marketing and promotions.
Strategies used by firms to overcome this hurdle include nurturing the service consumption habit of customers so as to make the demand unseasonal, or recognizing markets elsewhere in the world during the off-season period.