Navigate
X

4.6. The Extended Ps (HL Only)

  • People
    • One of the four main inputs of every business
    • 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