4.

5 the extended marketing mix

Here it is
Services are intangible products. This means that customers do
not have a physical entity to take away and use to derive
satisfaction from.

Hence, the marketing mix for services must powerfully designed

to ensure customers have a positive memorable experience
while they are being ‘served’ to ensure their return.

Remember ‘word-of-mouth’ and word-of-mouse’ promotion

depend on this!

HOW DO YOU PLEASE A

CUSTOMER???

The
marketing
mix for
services
3 added elements
Three elements are added to the traditional marketing mix for goods to ensure customer satisfaction and repeat business:

1. People

2. Processes

3. Physical evidence
People

• Providing services successfully is nearly entirely

dependent of employees who have:
1. Customers’ welfare at the top of their priority
list
2. Have the skill necessary to conduct the service
to the satisfaction of the customer
3. The ability to respond to change and
accommodate sometimes finicky customers
4. Communication skills to understand customers
and calm them when necessary
5. Positive body language and a professional
pleasant demeanor
6. Loyalty to their employer to sell the brand
People-customer
satisfaction priority

• People/employees attitudes are communicated

through their manner during the delivery of the
service.
• Would you want to be handled by this employee:
Or this employee?

• This one indeed…

Employee attitude…
HA HA…
Adaptive, patient employees…
• Yes…I can deal with finicky customers…

Yo
uh
exa ave
mi c tly
nut 5
ma es t
k o
hap e me
py…
Customer
service is
chief to
success in the
tertiary sector
Think about this…
Appearance and physique….
Which employee would you walk up to?
 Dude….what were you thinking???

Better yet what were they thinking when they hired

you??
Don’t call us. We’ll call you ……..NEVER……
Appearance and physique
• Which job applicant may be hired?
Sorry, the
‘Mars’
branch
hasn’t
opened yet!
Brand loyalty should come from employees first!
• Brand loyal workers…
People

• People in the service

sector define the
product….
• They may even be
synonymous with the
product
• Hence, businesses in the
tertiary sector should
keep their workers highly
motivated. This could
become the business’s
USP!!!
Process in the marketing
mix

• Process refers to the

method with which the
service is delivered
including:
1. Payment methods
2. Waiting time
(queuing)
3. After sale service
and maintenance
4. Delivery process
Payment
methods
• Multiple payment methods
add to the value of the
service through increased
convenience
Long queues
make
customers
anxious
This increases the chance for
conflict and reduces
customer satisfaction
($250,000 per kiosk at McDs)
After-sales service
• Customer service in jewelry
• Customer service Apple
After sales
service in
cars…
Fast delivery increases
customer satisfaction
Whether free or paid…
 Physical evidence
• Refers to the visible and tangible features of the location where the service is delivered.
• Elegant, pleasant, colorful décor tends to increase customer satisfaction.
• Remember, the physical evidence must reflect the brand name.
• Packaging.

• Internet/web pages.

• Paperwork (such as invoices, tickets and dispatch notes).

• Brochures.

• Furnishings.

• Signage (such as those on aircraft and vehicles).

Take a look
• Uniforms and employee dress.

• Business cards.
Furniture. What appeals to you?
• This???
Or this??
 Physical evidence
• Think about the effect the physical evidence has on the brand image.
• The Kansas City public library building
The Beijing Opera house
The Sydney Opera House
The Guggenheim museum-New York
 Boulder Colarado

Universities,
Physical
Evidence University of British Columbia Vancouver
London School of Economics
Physical evidence

• The location convenience and ambience created within can add value
to the customer experience while receiving the service.
• Physical evidence is chief in creating the desired atmosphere for the
customer…
This may be a fashion magazine’s office space……
While this may be a lawyer’s office space….
 What creates the desired atmosphere?
• The physical evidence of a nursery classroom versus that of a
university…
Challenges in marketing services
Three main challenges occur when marketing for services:
• Measuring productivity
• Corrective measures
• People management

3 challenges
Measuring productivity

• Measuring output produced by a teacher or

hairdresser is much more difficult than measuring
the number of garments produced per worker in a
clothing factory.
• As such, staff motivation through production-based
payment is not possible.
Corrective
measures
• Mistakes in the service sector can be fatal to
reputation. For instance, a hair salon that
caused damage to someone’s hair is much
more difficult to correct than selling a faulty
chair to a customer.
• Lawsuits follow!!
Managing people
• Services tend to be labor-intensive. As such,
successful provision requires positive employee
attitudes and technical/personal skills. This is
only built over time. In fact, many HR experts
believe that people may be trained to gain
technical skills but mindsets are just that SET
IN CEMENT.
Changing
someone’s
mindset…
Is like…
Training
may even
be
difficult
…
CCSE
• How do the concepts apply to the extended marketing mix?
• Change Creativity

• Ethics Sustainability