7 P's of Marketing Student Guide PDF

Managerial Economics 101 LECTURE 10 7 P's of Marketing Physical Evidence Physical evidence encompasses all the tangible aspects of a service that customers can see, touch, feel, or experience directly. Unlike physical products, services are intangible, making physical evidence critical as i...

Managerial Economics 101 LECTURE 10 7 P's of Marketing Physical Evidence Physical evidence encompasses all the tangible aspects of a service that customers can see, touch, feel, or experience directly. Unlike physical products, services are intangible, making physical evidence critical as it serves as proof of the service delivery and quality. It helps customers evaluate the service before, during, and after its consumption, thereby influencing their perception of the service provider. Elements of Physical Evidence: 1. Facilities: The physical environment where the service is delivered, including its design, cleanliness, layout, and ambiance. This could be a retail store, a hotel lobby, a restaurant, or even a website's design for online services. 2. Equipment: The tools, machines, and technology used to deliver the service. For example, in a hospital, this might include medical equipment, diagnostic tools, or in a salon, it could be the styling tools and products. 3. Signage and Symbols: Visual cues such as signs, logos, uniforms, and branding elements that communicate the service provider's identity, professionalism, and standards. 4. Packaging: The way services are presented or packaged. This could range from the physical packaging of a product (such as a gift wrapping service) to the presentation of digital services (such as user-friendly interface design). 5. Documentation: Tangible evidence such as receipts, contracts, reports, or certificates that validate the service transaction or the outcome of the service. 6. Other Customers: The behavior, appearance, and interactions of other customers can also serve as physical evidence. For instance, in a busy restaurant, seeing other satisfied customers enjoying their meals can enhance the perception of the service quality. 7. Brochures and Marketing Materials: Printed or digital materials that describe the service offering, benefits, and features. These materials contribute to forming expectations and perceptions about the service. Role in Marketing Strategy: Physical evidence plays several crucial roles in the marketing strategy: Building Trust and Credibility: It provides reassurance to customers about the service provider’s reliability and competence. For instance, a well-maintained and modern-looking office can convey professionalism and trustworthiness. 2  Setting Expectations: Physical evidence helps manage customer expectations. For example, a luxury hotel’s lavish lobby and amenities set the expectation of high-quality service and comfort. Creating Differentiation: It can be a significant factor in setting a service apart from competitors. Unique and appealing physical evidence can attract customers and encourage repeat business. Enhancing Customer Experience: A pleasant and conducive physical environment can enhance the overall customer experience, leading to higher satisfaction and loyalty. For example, 1. ITC Hotels is known for its luxurious ambiance, elegant décor, and impeccable service. The physical evidence includes the opulent lobby areas, well-appointed rooms with modern amenities, fine dining restaurants with stylish interiors, and spa facilities that exude relaxation and comfort. Each property reflects local cultural influences while maintaining international standards, reinforcing ITC's positioning as a premium hospitality brand. 2. Fabindia is known for its range of ethnic apparel, home furnishings, and personal care products that showcase traditional Indian craftsmanship. Its physical evidence includes store layouts that resemble Indian bazaars, wooden fixtures, earthy tones, and handcrafted displays that highlight the uniqueness of its products. Fabindia's stores often incorporate elements sich jute rugs, pottery, and textiles, creating a distinctive shopping experience that celebrates Indian heritage and craftsmanship. People People in the marketing mix represent the frontline personnel, employees, or anyone else directly involved in delivering the service to customers. They include customer service representatives, salespersons, technicians, consultants, receptionists, and any other staff members who interact with customers during service delivery. The importance of people lies in their ability to influence customer perceptions, provide personalized service, and build relationships that contribute to customer satisfaction and loyalty. Elements of People in the Marketing Mix: 1. Skills and Expertise: The knowledge, competencies, and expertise of the service personnel are critical. This includes technical skills (e.g., for technicians or specialists), communication skills (e.g., for customer service representatives), and industry-specific knowledge (e.g., for consultants). Well-trained and skilled employees can handle customer inquiries, troubleshoot issues effectively, and provide solutions that meet customer needs. 3 2. Attitude and Behavior: The attitude, demeanor, and behavior of service personnel significantly impact customer interactions. Positive attitudes, empathy, friendliness, and professionalism can enhance the overall customer experience. Conversely, negative attitudes, indifference, or rudeness can lead to dissatisfaction and loss of customers. 3. Appearance: The physical appearance and grooming of service personnel also contribute to the perception of professionalism and reliability. Uniforms, grooming standards, and personal hygiene reflect the brand’s image and can influence how customers perceive the service provider’s credibility and trustworthiness. 4. Customer Interaction: How service personnel engage with customers during every touchpoint is crucial. Effective communication, active listening, understanding customer needs, and providing timely and accurate information are essential aspects of positive customer interactions. This includes both face-to-face interactions and communication via phone, email, or online channels. 5. Training and Development: Continuous training and development programs are essential to equip service personnel with updated skills, product knowledge, and customer service techniques. Training ensures that employees stay informed about new products or services, industry trends, and best practices, enabling them to deliver high-quality service consistently. 6. Teamwork and Collaboration: In some service contexts, teamwork among service personnel is necessary to ensure seamless service delivery. Collaboration across different departments or functions within the organization can enhance efficiency and resolve customer issues more effectively. 7. Employee Empowerment: Empowering employees to make decisions within certain guidelines can lead to quicker problem resolution and improved customer satisfaction. When employees feel empowered, they are more likely to take ownership of customer issues and go the extra mile to ensure customer needs are met. Role in Marketing Strategy: People are integral to the marketing strategy for several reasons: Brand Ambassadors: Service personnel often act as ambassadors for the brand, embodying its values and culture in their interactions with customers. Differentiation: The competence, attitude, and behavior of service personnel can differentiate a service provider from competitors offering similar services. Customer Relationships: Positive interactions with knowledgeable and helpful staff can strengthen customer relationships, leading to repeat business and positive word-of-mouth referrals. Service Quality Perception: Customers often judge service quality based on their interactions with people. Well-trained, skilled, and customer-focused employees contribute to the perception of high service quality. 4 For example, 1. HDFC bank emphasizes the role of relationship managers and frontline staff in delivering personalized banking services. It invests in training its employees to provide expert financial advice, efficient customer service, and to handle customer queries effectively. HDFC bank's personnel are crucial in building relationships with customers and ensuring a positive banking experience. 2. IndiGo Airlines is known for its efficient operations and customer- centric approach, largely due to its well-trained cabin crew and ground staff. IndiGo emphasizes hiring friendly and service-oriented individuals who undergo rigorous training to ensure safety, punctuality, and excellent customer service. The professionalism and helpfulness of IndiGo’s personnel contribute significantly to the airline’s positive reputation and customer satisfaction. Process Process evidence encompasses the operational procedures, workflows, and systems that guide the delivery of a service from start to finish. It defines how tasks are performed, how resources are allocated, and how interactions with customers are managed throughout the service encounter. The importance of Process lies in its ability to ensure consistency in service quality, efficiency in operations, and alignment with customer expectations. Elements of Process in the Marketing Mix: 1. Service Design: The initial planning and design phase where the service offering is conceptualized, including identifying customer needs, defining service features, and outlining delivery processes. 2. Standard Operating Procedures (SOPs): Documented guidelines and protocols that detail step-by-step procedures for delivering the service. SOPs ensure consistency in service delivery across different locations and personnel. 3. Workflow Management: Systems and tools used to manage and streamline service delivery processes. This includes scheduling resources, managing queues, and optimizing workflow efficiency to minimize wait times and maximize productivity. 4. Quality Control: Mechanisms and checks implemented to monitor and maintain service quality standards. Quality control processes include regular audits, inspections, and feedback mechanisms to identify and rectify service deficiencies. 5 5. Customer Interaction Points: Defined touchpoints where customers interact with the service provider. This includes contact points such as customer service centers, online portals, retail outlets, and service delivery locations. 6. Technology Integration: The use of technology to enhance service delivery processes. This may include CRM systems for managing customer interactions, online booking platforms, automated notifications, and digital payment systems. 7. Resource Allocation: Allocation of resources such as human resources, materials, and equipment to ensure efficient service delivery. Effective resource management ensures that service demands are met without compromising quality or customer satisfaction. Role in Marketing Strategy: Process evidence plays a pivotal role in shaping customer perceptions and influencing their overall service experience: Consistency: Well-defined processes ensure consistency in service delivery, which fosters trust and reliability among customers. Efficiency: Streamlined processes reduce operational inefficiencies, minimize service delays, and enhance productivity, thereby improving customer satisfaction. Customization: Processes can be tailored to accommodate customer preferences and provide personalized service experiences, enhancing customer loyalty and retention. Competitive Advantage: Effective processes differentiate a service provider from competitors by offering superior service quality, efficiency, and customer satisfaction. For example, 1. Maruti Suzuki, India's largest car manufacturer, implements advanced manufacturing processes at its production facilities. The company focuses on lean manufacturing principles, efficient supply chain management, and quality control measures to ensure consistent production of high-quality vehicles. These processes contribute to Maruti Suzuki's reputation for reliability and customer satisfaction. 2. Apollo Hospitals has standardized processes for patient care, medical treatments, and administrative operations across its network of hospitals. The hospital group emphasizes clinical protocols, patient safety measures, and electronic health records (EHR) systems to ensure accurate diagnosis, timely treatment, and personalized care for patients. Reference: ▪ Marketing Mix and the 7 PS of Marketing | Mailchimp. (n.d.). Mailchimp. https://mailchimp.com/marketing-glossary/marketing-mix-7ps/#7._Process 6