Transcript Lecture 27- Marketing Mix-Physical Evidence, People, Process

MGT-519
STRATEGIC MARKETING
AAMER SIDDIQI
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LECTURE 27
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RECAP
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PR tools
Key steps in implementing PR
Advertising
Why advertise
Rules of advertising
Effective advertising
Commonly used media
Effectiveness of media
Trade fairs and exhibitions
SERVICE MARKETING MIX
EXTENDED MARKETING MIX (7Ps)
• A service is not tangible the
marketing mix for a service has
three additional elements:
1. Physical Evidence
2. People
3. Process
• By adding these three aspects
to the marketing mix,
you get what is known as the “7 P’s of Marketing.”
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PHYSICAL EVIDENCE
• The environment in which the service is delivered and where
the firm and customer interact, and any tangible components
that facilitate performance or communication of the service’.
• E.g. Retail premises, bank branches, restaurants, or hotel
premises would be good examples
• Physical environment has to be consistent with the other
aspects of the marketing mix.
• E.g it’s difficult to justify a high quality restaurant status that
has excellent food
• A strong positive brand image and a price to match if the
premises themselves are of poor quality.
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MATERIAL PART OF SERVICE
• Physical evidence is the material part of a service.
• Strictly speaking there are no physical attributes to a service,
so a consumer tends to rely on material cues. There are many
examples of physical evidence,
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Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and despatch notes).
Brochures.
Furnishings.
Signage (such as those on aircraft and vehicles).
Uniforms.
Business cards.
The building itself (prestigious/scenic headquarters).
Mailboxes and many others . . . . . .
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EXAMPLES OF PHYSICAL EVIDENCE
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A sporting event is packed full of physical evidence.
Your tickets team's logos printed on them
Players are wearing branded kits.
The stadium itself could be impressive and have an
electrifying atmosphere.
• Some organisations depend heavily upon physical evidence as
a means of marketing communications, for example tourism
attractions and resorts (e.g. Disney World), parcel and mail
services (e.g. UPS trucks),
• and large banks and insurance companies (e.g. Bank Alfalah).
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PHYSICAL EVIDENCE
• To the customer or potential customer, the physical
environment has to feel right and be in line with their
expectations.
• There was a time when all bank branch staff were hidden
away behind glass screens, dealing with customers through a
small opening. This was inconsistent with the open and
approachable stance that the banks were trying to
develop. So slowly the banks started to move some staff
outside into the public area so they could better interact with
customers.
• The physical environment then became consistent with other
elements of the marketing mix.
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PHYSICAL EVIDENCE
• We all have expectations of an airline when we book a ticket based
on our exposure to other aspects of the marketing mix e.g. price,
promotional activities and the route and timings being offered.
• Our expectations of what we should experience, in terms of the
physical environment, may well differ depending upon which
airline we booked with. We may put up with an aircraft that is
perhaps in need of some internal refurbishment if we have booked
with a budget airline. But we perhaps wouldn’t be so
accommodating if we had paid a higher price. This is another
example of where the physical environment is inconsistent with
other aspects of the marketing mix, leading to customer
dissatisfaction.
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PHYSICAL CLUES
• Do the staff that we come into contact with look smart and
tidy? Are they dressed in the way that we expect? The use of
uniforms or a clearly defined dress code can deal with this
issue.
• In the digital world, It would be inconsistent to experience a
slow and unresponsive website for a company who are
promoting a fast and efficient response to customer
enquiries.
COMMON ISSUES
• Poor use of language in digital communications from an
educational institution could also be classed as inconsistent
physical evidence.
• Inadequate packaging of a product from what we perceive to
be a high quality online retailer might also be seen as an
inconsistency in the physical evidence
PEOPLE
• People are the most important element of any service or
experience.
• Services tend to be produced and consumed at the same
moment, and
• Aspects of the customer experience are altered to meet the
'individual needs' of the person consuming it.
• Most of us can think of a situation where the personal service
offered by individuals has made or tainted a tour, vacation or
restaurant meal.
BUYING PREFERANCES
• Remember, people buy from people that they like, so the
attitude, skills and appearance of all staff need to be first
class.
• Some ways in which people add value to an experience, as
part of the marketing mix –
– training,
– personal selling and
– customer service
• Training
• All customer facing personnel need to be trained and
developed to maintain a high quality of personal service.
TRAINING
• Training should begin as soon as the individual starts working
for an organization
• During Induction it exposes the new employee to the
organisation's culture for the first time,
• Briefing them on day-to-day policies and procedures.
• In practice most training is either 'on-the-job' or 'offthe- job.‘
• On-the-job training involves training whilst the job is being
performed e.g. training of administrative staff.
• Off-the-job training sees learning taking place at a college,
training centre or conference facility.
PERSONAL SELLING
• There are different kinds of salesperson.
• There is the product delivery salesperson, e.g. fast food, or
mail.
• There is the order taker, and these may be either 'internal' or
'external'.
• The internal sales person would take an order by telephone,
e-mail or over a counter.
• The external sales person would be working in the field.
• In both cases little selling is done.
• The missionary promotes faith, building goodwill with
customers with the longer-term aim of generating orders.
PERSONAL SELLING
• The fourth type is the technical salesperson, e.g. a technical
sales engineer.
• Their in-depth knowledge supports them as they advise
customers on the best purchase for their needs.
• Finally, there are creative sellers.
• Creative sellers work to persuade buyers to give them an order.
• This is tough selling, and tends to offer the biggest incentives
• The skill is identifying the needs of a customer and persuading
them that they need to satisfy their previously unidentified need
by giving an order.
CUSTOMER SERVICES
• Customer services provide expertise
– e.g. on the selection of financial services, technical support
– e.g. offering advice on IT and software and co-ordinate the customer
interface
– e.g. controlling service engineers, or communicating with a salesman
• The disposition and attitude of such people is vitally
important to a company
• The processes they use and their training are paramount
PROCESS
Process is an element of service that sees the customer experiencing
an organisation's offering
• This element of the marketing mix looks at the systems used to
deliver the service.
• Imagine you walk into Burger King and order a Whopper Meal and
you get it delivered within 2 minutes.
• What was the process that allowed you to obtain an efficient
service delivery?
• Banks that send out Credit Cards automatically when their
customers old one has expired again require an efficient process to
identify expiry dates and renewal.
PROCESS
– An efficient service that replaces old credit cards will foster
consumer loyalty and confidence in the company
• All services need to be underpinned by clearly defined and
efficient processes.
• This will avoid confusion and promote a consistent service.
• In other words processes mean that
everybody knows what to do and how to do it.
THREE VIEWS ON PROCESS
• All views are understandable, but not particularly customer
focused.
• Three main views in the discussion of process within
marketing;
1. Processes is seen as a means to achieve an outcome,
– for example - to achieve a 30% market share a company implements
a marketing planning process.
2. Marketing has a number of processes that integrate
together to create an overall marketing process
– for example - telemarketing and Internet marketing can be
integrated.
3. A further view is that marketing processes are used to
control the marketing mix i.e. processes that measure the
achievement marketing objectives
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• It's best viewed as something that your customer participates
in at different points in time
• At each stage of the process, markets:
• Deliver value through all elements of the marketing mix.
– Process, physical evidence and people enhance services.
• Feedback can be taken and the mix can be altered.
• Customers are retained, and other services or products are
extended and marketed to them
• The process itself can be tailored to the needs of different
individuals, experiencing a similar service at the same time.
• Processes essentially have inputs and outputs. Marketing adds
value to each of the stages
THANKYOU
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