3.3.4 Making marketing decisions: Decisions Relating to Other Elements Of the Marketing Mix: People, Process and the Physical Environment.

Question 1

Outline people in the context of the 7 P’s

Answer 1

In the context of the 7 P’s, people refers to the staff or representatives of a company who will directly or indirectly come into contact with customers. In doing so they will influence the quality of service provided to the customer.

Question 2

How does a business ensure that the people element of the marketing mix is working effectively?

Answer 2

• Recruit workers with a supportive attitude towards customer service.
• Use motivational techniques to ensure that employees behave in a positive manner whilst working with customers.
• Provide training to ensure that customers are provided with a high quality service.
• Emphasise the importance to employees of the crucial role of after-sales service in creating goodwill and helping to increase repeat purchases.

Question 3

Why is the people element so important?

Answer 3

Many customers cannot separate the product or service from the person who provides it. A person may enjoy a restaurant meal because of the prompt and friendly attitude of the staff.

Question 4

Outline process in the context of the 7 P’s.

Answer 4

The procedure or flow of activities by which a service is delivered to the customer.

Question 5

Outline the key elements of process.

Answer 5

• Prompt responses to customer enquiries.
• Training and empowering contact staff so they can answer customer enquiries directly - ensures customers are not passed between different contacts and the length of the process is lessened.
• Managing the process to try and reduce the possibility of queueing, by matching supply to demand wherever possible.
• Enhancing the experience of queuing where necessary e.g. providing entertainment during theme park queues.
• Communicating effectively, so that customers know how promptly they will be dealt with.

Question 6

Outline physical environment in the context of the 7 P’s.

Answer 6

Often known as ‘physical evidence’, this refers to the tangible features of the service that can enhance customers’ experience.

Question 7

What are some examples of the physical environment?

Answer 7

• The business area.
• Company brochures.
• The company’s website.
• Equipment.

Question 8

Why is physical environment so important?

Answer 8

The physical environment may provide the only tangible evidence that a customer possesses before deciding to use the services of a business. E.g. An unattractive reception area, low quality brochure and non-user friendly websites are likely to dissuade customers.