All businesses have employees that help in conducting its daily operations
Much more important in service-based businesses since more employees come into contact with customers, as compared to product-based businesses
Customer relations
Employee that comes into contact with customers can create positive or negative effects on the image and reputation of the business
Service businesses require people who can interact positively with customers
People are important in service; they deliver and maintain transactional marketing
Recruiting and training the right employees are essential to create a competitive advantage
Usually most important in the hotel and restaurant industries where quality of service is valued quite highly
Measuring people’s effectiveness
Appearance
Attitudes and aptitudes
Efficiency
Link to HR
 Training
Customer feedback
Communication
People in the marketing mix
Personal/direct selling
People buy from people they like – attitude, skills and appearance need to be at the very best levels
Employees seek to:
Build goodwill with customers with the longer-term aim of generating orders
Advise customers on the best purchase for their needs
Persuade buyers to buy by identifying their needs and persuading them of previously unidentified needs
Customer service
Provide expertise, technical support, and coordinate the customer interface
Ways in which complaints are handled can affect a business’ reputation
Adds value by offering customers technical support, expertise and advice
Processes
Methods of delivering or providing the service
Processes that a business has in place to satisfy a customer’s wants reliably
Services need clearly defined and efficient processes to support it
Avoids confusion and promotes consistent service
Examples of processes
Payment methods
Waiting times
Customer services
Delivery
Post-sales care
Processes in the marketing mix
Direct Activities
Adds value at the customer interface as the consumer experiences the service
Indirect Activities
Helps support many processes, and the service itself before, during and after it has been consumed
Numerous processes integrate together to create an overall marketing process
Must strike a balance between customization and standardization
Both consistent service and unique experiences are important
Enhancements to the various processes can minimize costs and maximize profits, improving overall efficiency
Physical Evidences
The way the company appears from the outside
Shows the quality and origin of service
Can be used to charge a premium price
Potential customers will make judgments about the organization based on physical evidences before even having experienced the service at all
Physical evidences in the marketing mix
Given services are largely intangible, customers rely on physical aspects to judge
Tangible aspects have to be designed in order to sway customer perception
Physical environment
Ambience
Package of elements (e.g. color, music, smell, sound)
Helps in elevating the experience of the service
Ambience must be matched to the service that is being delivered
 Signages
Set of signs, symbols and artifacts of the business
Reflects the business’ image
Spatial layout/functionality
Way furniture and fixtures are set up or how machinery is spaced
The environment must help address the consumer’s needs
 Consistency
Physical evidences must be consistent with other elements of the marketing mix
Ex. Expensive restaurants must not only justify their prices based on the quality of the food, but with the type of cutlery, furnishings, and even the uniforms of the servers used
