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The Marketing Mix for Services and Non-Profit Marketing: Block 1 - Reading…
The Marketing Mix for Services and Non-Profit Marketing: Block 1 - Reading 10
Introduction - Service Characteristics and Non-Profit Marketing
Extended Elements - focuses on the 3 extra Ps (People, Processes, Physical Evidence) added to the traditional 4Ps, though all 7 apply as most offerings blend goods and services.
Four Special Characteristics of Services
Intangibility - non-physical offerings (though they may include physical elements)
Inseparability - production and consumption occur simultaneously.
Variability - quality depends on who performs the service.
Perishability - cannot be stored for future use.
Non-Profit Marketing - conducted to achieve goals other than standard profit, market share or ROI (e.g. charity fund-raising).
Goods-Services Continuum - visualises offerings ranging from pure physical goods (groceries) to pure services (education, banking)
People
Brand Representation - front-line staff serve customers and directly represent the brand, influencing purchase decisions and customer loyalty.
Salesperson Effectiveness and Intuition - forming accurate first impressions helps tailor sales approaches to customer budgets rather than relying on high-end price anchoring.
B2B Context - relationship quality is paramount, sales managers must monitor potential biases in how salespeople perceive customer feedback.
HR Role - crucial for selecting and training staff to deliver empathetic, customer-oriented service.
Processes
Alternative Channels - organisations must understand segments and provide alternatives (e.g. physical bank branches or counter service alongside digital teach/ticket machines).
Queue Management - maintaining efficiency through appointments, ticket systems, multiple queues or roving staff to ensure customer satisfaction.
Co-Production - customers often participate directly in service delivery (e.g. self-scanning groceries, watching food preparation.
Operations Management - central to designing processes that deliver customer value.
Physical Evidence
Cues to Service Quality - consumers use the physical environment (ambiance, cleanliness, décor, professional appearance) to asses quality and decide on patronage.
Brand Representation and Redesign - physical spaces must align with target segments and evolve over time (e.g. banks shifting from imposing architecture to open, accessible layouts).
Differentiation and Value-Adding - environments can offer extra value (free refreshments, art displays) or distinct thematic experiences (e.g. themed hotels in Las Vegas).