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BXY207 Reading 10: The marketing mix for services and non-profit marketing…
BXY207 Reading 10: The marketing mix for services and non-profit marketing
People
People who provide service elements (serving customers) represent the brand
Staff can influence customer's receptiveness to purchase
Customers are different from one another and demand to be treated individually (Hall, 2016)
Frontline staff or salespeople are more effective when they obtain accurate first impressions of customers (Hall et al., 2015)
They also recommend tailoring sales approaches to customer's budgets from the start
In a B2B context, relationship quality is paramount (Hall, 2016)
Perceptions of relationship quality must be monitored and observed by managers (Mullins et al., 2014)
Human resource function has an important role in selecting and training staff to ensure effective and empathetic customer service
Process
Organisations should make a feature of the delivery of a service
Organisations need to understand their customer segments and may need to offer alternativeprocesses for customers who dont want to participate in the production
Processes are also important for maintaining the efficiency of services
The operations management function is central to ensuring that an organisation's processes contribute to the delivery of customer value
Physical evidence
Phsyical evidence associated with a service can be interpreted by consumers as a cue to service quality and experience
Physical evidence can affect purchase decisions and future brand loyalty and testimonials (patronage)
Physical evidence is important in representing a brand and provides tangible cues to support an offering
Needs to be tailored appropriately to the target segments
The physical environment that accompanies a service environment also offers the opportunity for differentiation and adding value
The extra P's are designed around more Marketing Services rather than products
Special characteristics of services are:
Intangibility
Inseparability - Product and consumption are simultaneous
Variability - Quality etc
Perishability - Cannot be stored like a physical good
Non-profit marketing: includes marketing activities conducted by organisations to achieve goals other than profit, market share or ROI (Dibb et al., 2016)
Non-profit marketing tends to be service based but also often includes a blend of goods and services
The elements of people, process and physical evidence all play a role in the purchase or consumption experience (can be both)