people,process & physical evidence

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3 of 7 P's of Service Marketing


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People, Process & Physical Evidence in Service :

People, Process & Physical Evidence in Service .Mirdula Madhu. .MGT0905423.


Introduction Jerome McCarthy, an American Professor in Marketing Mix in terms of 4P’s- Product, Price, Promotion & Place. The marketing mix is valid for both products & services. Many thought it appropriate to reconsider the traditional marketing mix in the context of service. The strategies of the 4 P’s require some modifications when applied to service due to the special features of services. and those are. . .

Slide 3:

The challenges encountered by the service marketers -like heterogeneity –the requirements of the customers while delivering service and perishability and absence of inventory , intangibility of offers and absence of patent protection , etc necessitate the extension of the marketing mix to include PEOPLE, PROCESS and PHYSICAL EVIDENCE

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The additional prescribed Ps refer to the activities that are essential to meet the challenges posed by the 3 unique characteristics of service: Simultaneity/ inseparability of service provider from customer ( Participants/People ) The inability to hold inventory of service making it critical for the service process to flow smoothly to match the demand and supply ( Process ) The need to make highly intangible service offering tangible ( Physical Evidence )

The real topic…:


People in Service:

People in Service

People in Service:

People in Service In service, the personnel come in contact with the process of production and consumption of services. The service marketing mix applies not only to personnel but also recognises the role of participants. In service business , the service personnel reflects the organisational realities, it is through the interaction with the staff, the customers forms an opinion of the organisation.

Types of Service Personnel:

Types of Service Personnel The classification of service personnel is based customer contact as it is the vital part of the qwlty of service experience Labour Intensive (people based): sales creation, delivery, personalised services… Equipment Based: automatic car wash, automatic vending machines, etc.

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The classification of personnel from market point of view: Customer Contact Employees- also called as frontline staff/ boundary spanners. Includes office staff, air hostess, bank clerk, waiters in hotels etc. the varying degrees of personnels in customer contact are: High Contact Personnel ( eg : hospitals, restaurants, edu . institutions) Low contact personnel ( eg : retailings , banks, post office) Skilled and professional ( eg : doctors, lawers , consultants) Non professional ( eg : telephone operators, retail clerks, courier delivery)

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2) Support Personnel/ Non- Contact Employee The employees who contribute to the service delivery but do not come into contact with the customer. Eg : chefs in hotels, cockpit crews, administrative staff.

Service Process:

Service Process

Service Process:

Service Process Refers to how a service is provided or delivered to the customer For this the service process must be designed Designing a service process system involves issues such as location, facility design and layout for effective customer and work flow, procedures and job definitions, measures to ensure qwlty, extend of customer involvement, equipment selection and adequate service capacity.

Designing Service Process:

Designing Service Process The factors to be considered in the Service design process are: The Service Itself Customer Participation Degree of Customer contact Degree of Divergence Location of Service Delivery Complexity of Service

A Spectrum of Service Process:

A Spectrum of Service Process Degree of Labour intensity Degree of interaction and customosation Low High Low Service factory Airlines Transportation Hotels Resorts& recreation Service shop Hospitals Auto Repairs Other repair services High Mass Service Retailing Wholesaling Schools Retail banks Professional service Doctors Lawyers Accountants

Physical evidence:

Physical evidence

Physical evidence:

Physical evidence A service encounter does not take place in a vacuum A service transaction generally involves the interaction of the service provider with the customer in a service environment. The service environment along with the tangible cues is termed as physical evidence . There are 2 perspective to physical environment: Process of operation perspective Marketing perspective

The factors that tangibilise services are::

The factors that tangibilise services are: Physical Facility (Essential Peripheral Evidence) Physical Setting (Appearance of the premises- design & decor) Social Settings (Appearance of Staff)

A. Physical facilities:

A. Physical facilities .. Like building, furniture, equipments, stationery, brochures…. … it reinforces the proposed image of the service organisation. The elements of physical evidence are: Essential Evidence Peripheral Evidence

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Essential Evidence- Constitutes a dominant part of the service facility. Technical facilities based on which service takes place. Cannot be passed on to consumer, except may be on temporary basis (eg: hotel building, aircraft in airlines, office and furniture in consultancy firm)

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2. Peripheral Evidence- Not very visible in relation to dominant physical evidence…. They definitely have an impact on the consumer perception about the qwlty of the service These include business cards, stationery, brochures, etc… These evidences are passed over to customers in the course of transaction… the service is provides without these items yet can be used to enhance corporate image…

B. Physical Environment:

B. Physical Environment …the physical setting or the service environment within which the service takes place…. The “service space” Includes_ the exterior attributes (the parking area, front elivation of the building, landscape) the interior attributes (the design, ambiance, layout, etc)

Slide 22:

The important elements of physical settings are as follows: Ambiance Décor and Artifacts Spatial Layout and Functionality

C. Social Settings:

C. Social Settings ….pertains with the appearance and attitude of staffs… …their technical skill, interactive skill, personalities and attitude towards work, consistency of quality performance and their appearance..

Role of physical evidence…:

Role of physical evidence… Facilitator: Enhances performance level of personnels in the environment Socializer: helps to convey expected roles, behaviour and relationship in the interaction process Differentiator: can differentiate the service from its competitors Impression: helps in shaping ‘first impression’ Image and Identity: portrays the corporate image and builds corporate identity

. . .Thank You. . .:

. . .Thank You. . .

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