4.5.3 Flashcards
the next p you are looking at is people, what does this entail?
It refers to the human capital in terms of skills, attitudes and abilities necessary in the production of goods and provision of services.
It is important to clarify, that the P for “People” mainly applies to service (since the production of goods does not have the same connotation)
As a service is intangible, the people delivering the service to the consumer must have sufficient training in order to ensure customer satisfaction (i.e. a waiter in a restaurant). This will also include after-sales service (i.e. feedback)
what may the consequence of poor customer servise cause?
Poor customer experiences can be posted on social media and then the whole world knows about it, of course this will have a negative effect on the business.
what is customer retail management?
Getting good people - well trained confident and well-motivated employees who deal with customers (online or in person) in an efficient, speedy manner helps to createcustomer l
what is something that is really important to take into consideration with people that you have covered earlier in the syllabus?
It is also VERY important to take the cultural aspect into account, as this is mainly a “people’s” aspect. As culture includes the way employees perceive or behave in an organization; this needs to be carefully managed.
Different cultures react in different manners and some cultures are more dominant than others, creating a “culture gap” in the organization. It is the firm’s responsibility to close this gap and to create a sense of unity between the employees.
the next p is processes, can you say what this refers to?
Refers to the procedures and policies relating to how an organization’s product is provided and delivered. It is basically, the system used to deliver the goods or services.
These are the procedures and policies that are put in place to provide the service or the product to the consumer. (i.e. what processes does McDonald’s put in place if a customer walks into one of its restaurants and orders a Bic Mac meal and it is delivered within two minutes)
expand even more on processes?
Short waiting times, quality information given to customers and the helpfulness and knowledge of employees are all expectations of customers that should be met if the process is effective and well tested.
Firms need to consider a number of processes for marketing to be effective, such as identifying costumers’ requirements, how to handle customer complaints and handling orders. These processes are all focuses on developing customer loyalty.
what are some ways firms can imporve their processses?
Processes to improve the speed of products delivery to customers
Provide a variety of payment methods (i.e. card, cash, PayPal, credit, etc.)
Offer technical support after the product is purchased
Informing customers on the length of the services (i.e. how long their meal will take to be served)
evaluate processes?
Overall, ensuring that the right processes are in place is time consuming and expensive for firms, specially start up ones. However, firms need to ensure that at least the basic process are in place.
On the other hand, Processes must change for a business to remain competitive. For example, online shopping offers customers a much quicker and more convenient ordering/payment/delivery process than traditional retail shopping. Hence, if a business selling goods that did not embrace this technology, then its procedures would be outdated.
your last p is physical evidence, what does this entail?
This refers to the tangible or visible points that are observable to customers in a business. More specifically, refers to the ways in which the business and its products are presented to customers. This is how the business’s goods or service “appears from the outside”.
This element of the marketing mix can help distinguish a company from its competition. Physical evidence can support the charging of a premium price for a service and establish a positive customer experience.
Physical evidence can also refer to the appearance of employees and how they dress and act. If restaurant servers are unclean or untidy this will not inspire customer confidence.
can you give somes good examples of physical evdidence?
Customers use other senses apart from sight to make judgements about the physical environment they find themselves in. The smell of freshly baked bread is now a common feature in supermarkets. Similarly, customers expect to smell food in food establishments not cleaning products.
