3.17 - People, Process and Physical Environment

Question 1

What is People?

Answer 1

The staff a company has who come into contact with customers

Question 2

Describe the People element of the marketing mix

Answer 2

They will have a major impact on the firm’s quality of customers service and therefore their brand image and customer loyalty

Question 3

What is Process?

Answer 3

How the company deals with its customers and delivers the products or service

Question 4

Describe the Process element of the marketing mix

Answer 4

It covers areas such as communication, how the customer is dealt with, how quickly and effectively they have their needs satisfied, after-sales services etc

Question 5

What is Physical Environment?

Answer 5

The tangible features of the service that can enhance customers experience

Question 6

Give examples of the Physical Environment

Answer 6

Store layouts and displays
Buildings the business operates in
Websites - catalogues, brochures, letters and emails
Equipment used 
Staff appearance and uniforms
Packaging

Question 7

Why is the People, Process and Physical Environment key decisions?

Answer 7

They can:
Provide a differentiator or USP
Affect the business reputation
Affect purchases, loyalty and sales
Increase costs - may require investment in equipment, technology or building or staff number and training