PEOPLE, PROCESS, AND PHYSICAL EVIDENCE Dae Hee Avi 3Ps As the service sector expanded, three more Ps have been added. These Ps apply especially to intangible products (services) such as tourism, entertainment, and hospitality. People As services are performed by people, it is essential that businesses use qualified and trained employees. The people element refers to the quality of interaction between the customer and those within the business who will deliver the service. Customers base their perceptions and make judgments about a business based on how the employees treat them. The interaction can determine the success of any marketing campaign. CASE STUDY Scandinavian Airway Service (SAS) adopted a total marketing philosophy. The CEO encouraged all staff to make decisions that would improve the service offered to customers. The CEO wanted customers to make positive judgments about the airline from a positive first impression. SAS implemented customer-oriented business and marketing practices. The business went from near bankruptcy to profitability. Process The process element refers to the flow of activities that a business will follow in its delivery of a service. The processes must be highly efficient to achieve customer satisfaction. E.g. McDonald’s delivery within a few minutes. A business with inefficient processes will lose customers and damage its reputation. E.g. delivery of cold pizza. Physical evidence Imagine a restaurant with good product, price, people, and process, but the cutlery was dirty, and the chairs were uncomfortable. A customer would probably not return to that restaurant. Physical evidence refers to the environment in which the service will be delivered. It also includes materials needed to carry out the service such as brochures, and business logo. A business should provide high-quality physical evidence to create an image of value and excellence. E.g. A luxury hotel using material cues so that the customers will form a good impression. SHORT ANSWER QUESTIONS 1. 2. Identify the seven Ps of the marketing mix. Outline why it is important to extend the marketing mix in the current business environment.