9.07 – Appreciating People, Process & Physical Evidence
The original marketing mix included just Four Ps: product, price, place, and promotion. However, this mix has since been extended to Seven Ps, incorporating people, process, and physical evidence to emphasize a customer-focused approach in business. These additional factors address the unique challenges of marketing intangible services, but they are also relevant to nearly all products due to the inherent service elements.
Understanding The Role Of People In Marketing
Marketing success often hinges on more than just flashy advertising campaigns or innovative products. It critically depends on the people who implement these strategies. The fifth P in the marketing mix, people, involves selecting the right individuals to execute your marketing plan and organizing them effectively.
The success of a marketing strategy is greatly influenced by the people who carry out the tasks. Ensuring you have the right team, understanding their motivations, and aligning them with your business vision are paramount. This is why having a workforce that reflects your customer base can significantly enhance your business proposition.
Case Study: B&Q's Workforce Initiative
In 1989, B&Q, a major home improvement retailer, revamped its workforce profile to better reflect its customer base. The initiative focused on employing knowledgeable staff from the local community, emphasizing hiring individuals over 50. This shift led to an 18% increase in profits and significantly improved employee morale and retention. The initiative also earned B&Q the Gallup Great Workplace Award three years in a row, reflecting near world-class employee engagement.
Recognizing Physical Evidence
For retail businesses, creating an attractive physical environment is crucial for a positive customer experience. Customers often rely on physical cues to evaluate products before purchase. In service-oriented businesses, physical evidence replaces these cues to enhance the customer experience.
Example: Tiffany’s Flagship Store in London
When Tiffany’s opened its flagship London store in 2018, it included features to encourage creative interaction and provide a pleasing physical experience, such as an in-store Tiffany fragrance vending machine. This tangible evidence helps enhance and encourage the customer’s buying experience.
Ambience also plays a crucial role. For instance, a club might use loud music and flashy lighting, while a spa might use candles and gentle scents to create a calming environment. Marketers need to design physical ambiances that support and enhance the services being sold.
Enhancing Processes
The process involves how you deliver your product or service. Efficient and user-friendly processes can provide a competitive edge. Complicated ordering systems, confusing websites, and unhelpful return policies can deter customers, so it’s crucial to optimize these processes.
Example: Streamlined Travel Agency Processes
A travel agency should ensure a streamlined process for customers booking package holidays. This includes easy online booking, efficient e-ticket issuance, smooth airport check-in and baggage retrieval, seamless transit to the hotel, and swift problem resolution. Such a trouble-free experience will encourage repeat business.
Process optimization has become so critical that it has given rise to a new business discipline: business process re-engineering (BPR). This involves fundamentally rethinking and redesigning business processes to achieve significant improvements in performance measures such as cost, quality, service, and speed.
By integrating people, process, and physical evidence into your marketing mix, you can create a more customer-centric business strategy that enhances customer satisfaction and loyalty.
