4.5 - marketing mix, people, processes, physical evidence, place

7Ps of marketing

• people

• processes

• physical evidence

• place

• price

• product

• promotion

people

employee customer relationships

methods of measuring customer service quality

• appearance and body language

  • non contact culture

  • contact culture

• aptitudes and attitudes

• feedback

• efficiency

processes

the way in which a service is provided of delivered

processess include:

• payment methods

• waiting times

• customer services

• after sales care

• delivery processes

physical evidence

tangible aspects of a service 

place/ distribution

business activities that make the product available to consumers

channels of distribution

means used by firms to ensure customer gain access

• direct

• using intermediaries

intermediaries

firms/agents who act as a middle person between

levels of distribution

• zero level (p→c)

• one level (p→ retailers/ distributors/ agents →c)

• two level (p→ wholesalers → r/d/a →c)

wholesalers

businesses that purchase large quantities from manufacturer

• break the bulk purchase into smaller units for resale

advantages of wholesalers

• wholesalers bear the cost of storage

• retailers don’t have to purchase in large quantities

• producers have lower transaction costs

• wholesalers deal with distribution issues

limitations of wholesalers

• producers take a risk

• wholesalers may not promote the products the way producers want

distributors

independent, specialist businesses that trade in products of only few manufacturers

agents/ brokers

negotiators who act for buyers/sellers and charge a commission

retailers

sellers of products to the final consumer

specialty channels of distribution

any indirect way to distribute products that doesn't use intermediaries

• telemarketing

• e-commerce

• vending machines

• mail order

telemarketing

use of telephone systems done by automated voice/ text message

e-commerce

trading via internet

+ access beyond traditional geographical boundaries of markets

vending machines

machines that stock products for sale

+ can be placed anywhere due to compactness

mail order

business sending promotional material via post to entice customers to buy§

advantages of specialty channels of distribution

• not sharing profits with intermediaries

• greater control over distribution

• growing demand for convenience

• reach consumers who cannot access retail outlets

factors affecting choice of channels

• product

• market

• time

• legal constraints

• cost and benefits