Unit 11 - The Extended marketing mix;

People, Process and Physical Evidence

11.0 Unit Objectives
Upon the completion of this unit, you will be able to:
1. Have an idea of what is the extended marketing mix
2. Describe the 3 additional Ps; People, Process and Physical evidence
3. Apply these concepts, together with the traditional 4 Ps

11.1 Introduction
Traditionally the marketing mix consisted of the 4ps, that is, Product, Price, Place and
Promotion which allows an organization to meet its marketing objectives and satisfy the
needs of its customers. With time, a fifth P was added due to the evolution of marketing and
it was People. The service industries have experienced considerable changes and importance
during these past few years and marketing is now more customer oriented and therefore, two
other Ps were added; Process and Physical evidence. Hence, it can be now called the 7Ps of
marketing or the extended marketing mix. The 7 Ps which consists of price, product, place,
promotion, physical evidence, people and process embrace the modern marketing mix.
Initially the additional 3 Ps are mainly for the marketing of services since they are different
from tangible products. However, the modern marketing mix is not only relevant in the
service industry but to any form of business as well.
It is important for businesses to consider all the 7 Ps in their marketing mix. Some companies
might be selling products with a surrounding service element, for example, a customer care
service for a car manufacturer, or some might be selling services with tangible element, for
example, a travelling agency providing services with the support of the tangible products.
Organizations improve their marketing effectiveness by having recourse to the right
combination of the extended marketing mix when offering their products. Let us now have a
look at the additional 3 Ps; People, Process and Physical Evidence.

11.1.1 People
People are very important for any organizations. They are the ones who promote and sell the
services. People have been described as All human actors who play a part in service delivery
and thus influence the buyers' perceptions; namely, the firm's personnel, the customer, and
other customers in the service environment (Zeithaml et al, 2008). Most of the employees of
the organization will be in direct contact with customers. This can create either a positive or
negative impression among customers and will also determine the reputation of the
organization brand. These people dealing with customers should be well trained, have the
right attitude and of course motivated to satisfy customers. For example, a salesperson should
be well trained so that he/she can deal with any type of customers even at peak hours.
Businesses should ensure that the right people are on the right job. For example, you cannot
employ an accountant to serve at the customer services desk. Customers like to be well taken
care of. They will be more willing to buy from people that they like and they will refer to
elements such as the attitude, skills and appearance of the employees. For example, they
expect to be advised before buying a product, especially, if it a new product with the latest
technology. Therefore, the people dealing with the customers should be well equipped in
terms of knowledge and also be able to provide high quality after sales support.
Imagine you want to buy a new product, the PlayStation 4. When you go to the shop, the
salesperson is not capable of advising you and later you found out that the after sales support
is very poor. Will you visit this shop again? I guess no. A service is intangible and therefore,
people represent of the elements of the service that customers can see and interact with.
Organizations should make sure that their staffs have the appropriate interpersonal skills,
aptitude and service knowledge so that they can deliver a quality service and delight the
customers.
Some of the ways in which people can add value to an experience are as follows:
Training

As mentioned earlier, people dealing with customers should be well trained, have the
required knowledge and attitude. Organizations should have recourse to induction so
that training can begin the day the employee starts working. During training, the
employee can be initiated to both on-the-job and off-the-job training where he/she
will be able to acquire the right skills and knowledge. Having well skilled employees
will allow the organization to cater effectively for its customers.

Customer service
All the products, services and experiences supplied by an organization are supported
by customer services teams. Customer services are essential to any organization as
they provide expertise, technical support and coordinate the customer interface and
these services can be in different form ranging from face to face to the internet.
Customer services can add value to an experience through well trained staffs who can
provide advice, expertise and technical support to customers.

11.1.2 Process
The 6
th
P, Process is all about how you are delivering a service and the behaviour of those
who are delivering that service. Authors like Zeithaml et al. (2008) have defined process as
The actual procedures, mechanisms, and flow of activities by which the service is delivered
this service delivery and operating systems. It includes issues such as:
The amount of time a customer has to wait before obtaining his/her product
The information given to him/her
The way staff are being helpful and able to keep the customer happy
Process which is about how customers are being handled from the beginning to the end
covers several areas such as:
Procedures
Controls
Accessibility
Payments
Bookings
Speed and timing of delivery
For example, the moment, you arrive to a hotel, you are greeted at the reception desk, your
check-in is being done without delay, your luggage are carried to your hotel and finally you
reach your room. This shows the highly focused marketing process which is incorporated in
the system of the hotel. And the process includes all the areas mentioned earlier.
Process is undertaken at different stages of the delivery of the service and at each stage, the
organization delivers value, accept feedback from customers and also tailors the process on
order to meet the different needs of various customers. Direct activities and indirect activities
form part of processes. Direct activities are those activities which add value to the service
while indirect activities support the service before, during and after it has been consumed.
Customers are more interested with how the system of an organization works rather than the
details of how it is being run. In simpler form, the customers are more concerned with the
way the organization is delivering the service rather than knowing what is happening behind
the curtains. Businesses should make sure they have an effective process incorporated
within their system. The effective process will result in the delivery of quality services and
avoid confusions. For example, if a customer is trying to reach a business by phone, he/she
should not be made to stay on hold for several minutes. He/she may get bored and give up
and even turn to competitors. In some cases, these frustrated customers can create a negative
word of mouth with other people concerning the organization. Successful companies are
those which look at the process from their customers point of view and therefore the process
should be designed for the customers convenience, not for the provider.

11.1.3 Physical evidence
A service is intangible and therefore it cannot be experienced before it is delivered. When a
customer is looking forward to buy a product, he/she has the chance to see, touch, smell or
even try the product before he/she buys it. On the other hand, it is completely different in the
case of a service. At times, the customer is being offered a free trial, he/she will be able to get
an idea of the service. However, free trials are not available most of the time. So,
organizations need to create trust in the mind of the customers so that they can buy the
service that is being offered.
Firms can have recourse to physical evidence. Physical evidence can be described as the
environment where the service is being delivered. Zeithaml et al. (2008) defined physical
evidence as the 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. It includes factors such as:
Facilities facilities should be available for customers, for example toilets in a coffee
shop
Ambience includes temperature, color, smell and music and the ambience should
make customers feel at ease.
Layout - the layout should be simple and friendly so that customers do not get
confused and feel comfortable.
Decoration the decoration should be such a way that it attracts customers. For
example, the signs, symbols and artefacts should attract customers. For example, the
KFC logo which is very friendly.
Organizations make use of physical evidence to beat competitors and also charge a premium
price when required. For example, a clean and well-decorated reception in a hotel, will
definitely make customers happy when they check-in or out. The hotel can charge a premium
price for the settings of its rooms, for example, a suite will cost more than a normal room.
Customers can rate organizations based on the physical evidence. If a restaurant is clean and
friendly, they will rate it positively. Nowadays the physical evidence is an important aspects
for both organizations and customers. Taking the examples of different industries:
Air passengers expect to have attractive and friendly departure or arrival lounges.
Students expect to have quality accommodation in campus
Banks are expected to have pleasant waiting areas.

However physical evidence does not include only the setting where the service is being
delivered, but also all the other tangible and visible parts, ranging from the staffs clothing to
the brochures, that the customers will experience before they buy the service. Some examples
are:
Packaging
Web pages
Paperwork
Uniforms and employee dress
Business cards
mailboxes
Some companies have recourse to testimonials in which customers express their opinions and
feedback. Companies use these feedback to improve their physical evidence.

Activity
Based on your personal experience, explain how the extended marketing mix people,
process and physical evidence have influenced your choice of selecting a service provider for
a particular activity/ transaction.


11.2 Topic Summary

This unit dealt with the 3 Ps of the extended marketing mix, which is People, Process and
Physical evidence. In todays business world, not only in the service industry, the extended
marketing mix is very essential in order to beat competitors. The traditional marketing mix;
Product, Price, Place and Promotion is still being used but through the extended marketing
mix, companies can have a competitive edge over their rivals.




Reference
Business Case Studies The extended marketing mix (7Ps). Available at
http://businesscasestudies.co.uk/business-theory/marketing/the-extended-marketing-mix-7ps.html.
(Accessed: 8 December)
Learn marketing (n.d) Service Marketing Mix (Extended Marketing Mix). Available at
http://www.learnmarketing.net/servicemarketingmix.htm (Accessed: 8 December 2013)
Rafiq M. & Ahmed P.K. (1995) Using the 7Ps as a generic marketing mix: an exploratory survey of
UK and European marketing academics, Marketing Intelligence & Planning, 13(2), pp. 4-15.
The chartered institute of Marketing (2009) How to achieve an effective marketing mix. Available at
http://www.cim.co.uk/files/marketingmix.pdf (Accessed: 8 December 2013)
Wilson A., Zeithaml V. A., Bitner M. J. and Gremler D. D. (2008), Services marketing: integrating
customer focus across the firm, published by McGraw-Hill Education, 1st European Ed.