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The Marketing Mix for Services and Non-profit Marketing (People (Staff…
The Marketing Mix for
Services and Non-profit Marketing
People
Play a key role by serving customers and representing the brand
Staff can influence customers receptiveness to purchase a product
Staff can be
Over/under attentive
Under/over selling the item
Projecting favourable or off-putting impressions
Customers are different from one another, and demand to be treated individually
Front line staff (sale people) are more effective when they are able to form accurate first impressions of customers
Can help to influence future interactions and improve their efficiency and effectiveness
A common strategy of sales people is trying to interest
customers in the top-of-the-range options to provide a higher anchor price
This can be counter productive and it is advised to instead tailoring sales approaches to customers’ budgets from the beginning
Customer orientated training
A means of equipping staff with the skills needed to help them identify customer needs more accurately
Business to business
Relationship quality is paramount
Salespeople’s perceptions of relationship quality may be biased if they focus either predominantly on positive or negative feedback cues from customers
Managers need to watch closely through observations
HR have an important role in selecting and training staff to ensure effective and empathetic customer service to ensure that staff have the skills to support the organisation’s offering
Processes
Processes for delivering the service may be visible to customers to varying degrees
Some companies make a feature of it eg enabling customer to watch their food/drinks be made or involving customers in the process (eg customer scanning their own items before checkout)
Process can become part of the customer experience and customers are described as being co-producers
Organisations needs to be aware that some segments to not want to be involved in the process eg going into the branch of a bank instead of online banking
Important for maintaining the efficiency of services
eg where customers have to queue for a service
Effective queue management is a key aspect of customer satisfaction
Can be managed in a number of ways
Providing appointments
Operating a numbered ticketed system
Setting up more than one queue to cater for different purchases
Pre order and collection systems
Roving staff who can direct queuing customers to alternative service routes
Operations management to central to ensuring that an
organisation’s processes contribute to the delivery of customer value
Physical evidence
A cue to service quality and a component of the service experience, which can affect purchase selection and future custom
Consumers will asses the...
Atmosphere
Quality
Decor
The menu
The ambience
Cleanliness
Professional appearance
Important in representing a brand and provides tangible
cues to support an offering
Needs to be tailored appropriately to the target segment(s)
May need to be updated or redesigned over time
Offers the opportunity for differentiation and adding value
Examples
Free refreshments
Original art for sales
Key Points
The 3 extra P's take account of the differences in marketing services rather than physical products
The special characteristics of services
Intangibility
They are not physical offerings, although they may
contain physical elements
Inseparability
Production and consumption are simultaneous
Variability
Service quality may vary depending on the person who performs the service
Perishability
Service is provided at a point in time and cannot be stored in the same way that physical goods can
Non profit marketing
Includes marketing activities conducted by individuals and organisations to achieve some goal other than the ordinary business goals of profit, market share or return on investment
Although profit is not the principal goal of non profit organisations achieving their goals may involve profit making (eg fundraising)
Tend to be service based but also often includes a blend of goods and services
Goods and services are often represented as being positioned along a continuum
See goods service continuum (Book 1 p 85)
Within each of the offerings the mix of the additional elements of the 7 p's play a role in the customer purchase or consumption experience or both