PEOPLE,
PROCESS, AND
PHYSICAL
EVIDENCE
Dae Hee
Avi
3Ps
 As
the service sector expanded, three
more Ps have been added.
 These Ps apply especially to intangible
products (services) such as tourism,
entertainment, and hospitality.
People
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As services are performed by people, it is
essential that businesses use qualified and
trained employees.
The people element refers to the quality of
interaction between the customer and those
within the business who will deliver the service.
Customers base their perceptions and make
judgments about a business based on how
the employees treat them.
The interaction can determine the success of
any marketing campaign.
CASE STUDY


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Scandinavian Airway Service (SAS) adopted a
total marketing philosophy.
The CEO encouraged all staff to make decisions
that would improve the service offered to
customers.
The CEO wanted customers to make positive
judgments about the airline from a positive first
impression.
SAS implemented customer-oriented business and
marketing practices.
The business went from near bankruptcy to
profitability.
Process
 The
process element refers to the flow of
activities that a business will follow in its
delivery of a service.
 The processes must be highly efficient to
achieve customer satisfaction. E.g.
McDonald’s delivery within a few minutes.
 A business with inefficient processes will
lose customers and damage its
reputation. E.g. delivery of cold pizza.
Physical evidence

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
Imagine a restaurant with good product, price,
people, and process, but the cutlery was dirty,
and the chairs were uncomfortable. A customer
would probably not return to that restaurant.
Physical evidence refers to the environment in
which the service will be delivered. It also includes
materials needed to carry out the service such as
brochures, and business logo.
A business should provide high-quality physical
evidence to create an image of value and
excellence. E.g. A luxury hotel using material cues
so that the customers will form a good impression.
SHORT ANSWER QUESTIONS
1.
2.
Identify the seven Ps of the marketing
mix.
Outline why it is important to extend the
marketing mix in the current business
environment.