People, processes and physical evidence (services)

We have discussed the four Ps of the marketing mix, which is considered the basic cornerstone of marketing. This traditional approach was developed in the age of marketing dominated by the rapid growth in manufacturing during the 1950s to 1960s. Consequently, these 4 Ps are considered appropriate for tangible products (goods) such as clothing, electronic appliances, perfumes and motor vehicles. However, as the service sector within the economy expanded, this traditional approach to marketing was viewed as somewhat outdated which apply especially to intangible products (services) such as tourism, entertainment and hospitality.

Extending the marketing mix by adding people, processes and physical evidence to the usual 4P’s connects the marketing function much closer to both human resource management and operations, thus illustrating the interdependence between these functions.

Processes refers to the flow of activities that a business will follow in its delivery of a service.

Without a tangible product, the processes must be highly efficient to achieve customer satisfaction. Consider all the processes involved in booking a flight online. The airline’s website is used to enter the details. A confirmation email will be automatically generated providing a booking reference. An electronic boarding pass can be downloaded and printed. A day prior to the flight, a seating allocation can be done online. The delivery system that allows this to happen is part of the process element of marketing.

Physical evidence refers to the environment in which the service will be delivered. It also includes the location of where the service is being provided and the materials needed to carry out the service such as signage, brochures, business cards, business logo and website.

Unlike tangible goods, it is difficult for a business’s marketing services to provide customers with a ‘try before you buy’ sample unless a free trial is offered. Customers initially buy services on trust and they make judgements about the business based on the physical evidence. Consequently, a business should provide high-quality physical evidence to create an image of value and excellence