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B207 Reading 10: The Extended Marketing Mix - Coggle Diagram
B207 Reading 10: The Extended Marketing Mix
1. Context: Services and Non-Profit Marketing
Services (Special Characteristics):
Intangibility:
Not physical offerings (though they may contain physical elements).
Inseparability:
Production and consumption are simultaneous.
Variability
: Service quality may vary depending on the person performing the service.
Perishability:
Service is provided at a point in time and cannot be stored
Non-Profit Marketing:
Marketing activities conducted to achieve goals other than ordinary business profit (e.g., charities raising funds for charitable work).
Goods-Services Continuum:
Most offerings consist of a blend of goods and services; the 7Ps are relevant because of this blending.
2. People (The 5th P)
Role
: Staff (especially front-line staff) provide service elements, serve customers, and represent the brand.
Impact:
Staff behaviour can influence customers' receptiveness to purchasing (e.g., being over/under-attentive or projecting off-putting impressions).
Effectiveness:
Staff are more effective when they can form accurate first impressions of customers.
Sales approaches should be tailored to customers' budgets rather than consistently trying to upsell to the top-of-the-range option.
In B2B, relationship quality is paramount.
Organisational Support:
The human resource function is crucial for selecting and training staff to ensure effective and empathetic customer service.
3. Processes
Definition:
The procedures, mechanisms, and flow of activities by which a service is delivered.
Visibility/Involvement:
Processes may be visible to customers (e.g., watching food preparation).
Co-Production:
Customers may be involved in the process (e.g., self-scanning), becoming co-producers.
Organisations must offer alternative processes for customers who do not wish to co-produce (e.g., bank customers who prefer counter service over machines).
Efficiency and Customer Satisfaction:
Processes are vital for maintaining efficiency and customer satisfaction.
Queue Management
: Techniques like providing appointments, numbered tickets, or roving staff are essential when customers have to queue
Function:
The operations management function is central to ensuring processes deliver customer value.
4. Physical Evidence
Definition:
The tangible cues or environment associated with the service (the 'servicescape').
Role:
Interpreted by consumers as a cue to service quality and a component of the service experience.
Assessment
: Consumers assess the atmosphere, quality, and décor of any service setting (e.g., cleanliness of a taxi, professional appearance of an office).
Differentiation:
Physical evidence is important for representing a brand and needs to be tailored to the target segment.
It offers opportunities for differentiation and adding value (e.g., banks shifting from imposing to open layouts; car showrooms offering free refreshments; Las Vegas hotels using distinct themes)