Marketing: An Introduction The marketing mix – 4Ps The extended marketing mix – 7Ps

The Extended Marketing Mix (7P’s) The 4P’s don’t express the full range of marketing activities in the service sector So, the “extended marketing mix” (7P’s) was developed by Bloom and Bitner in 1981 The 3 extra P’s include: People – the human aspect Process – the transaction of service – flow of activities in delivery of a service Physical environment (Physical evidence) – the tangible evidence of service

The Extended Marketing Mix (7P’s) People: - the human aspect of service delivery Services very dependent on the human element (people) to deliver the “product” In many cases customer satisfaction linked to service provided e.g. Lovely restaurant surroundings and good food delivered by pleasant staff End result = satisfied customers  Slow and rude waiting staff End result = dissatisfied customers 

The Extended Marketing Mix (7P’s) People: Well-trained staff vital to the provision of a service Direct contact between customer and staff Simultaneous nature of production and consumption

The Extended Marketing Mix (7P’s) Process – the transaction of service The procedures and flow of activities involved in the delivery of a service Processes play an important role in the quality of service provided Most successful businesses have a marketing process that is highly focused on / driven by the customer

Customer driven marketing process The Extended Marketing Mix (7P’s) Processes: Examples – Flow of activities Going on a cruise Greeted at dockside Baggage taken directly to cabin Services from restaurants, spa, shops Baggage taken to transport at final destination Customer focused marketing process Booking flight online Visit airline's website Customer enters details & books flight Ticket/booking reference arrive by email or text Catch flight and arrive at destination Customer driven marketing process

The Extended Marketing Mix (7P’s) Physical environment – the tangible evidence of service The environment in which the service is delivered Due to intangibility of services, customers look for physical evidence to assess the quality of the service For example: In a hotel, nice decor, comfortable room temperature, en-suite etc The location and cleanliness of a hairdresser’s premises The leg room and quality of food served on an aeroplane

Adapting the marketing mix

Britvic - adapting the marketing mix Changes in external market (macro) conditions that may affect Britvic How Britvic might adapt its marketing mix to respond to these changes Ageing population Introduce new products aimed at older people Economic recession Introduce a value range Government promotion of healthy lifestyle Introduce products in keeping with a healthy lifestyle

Assessment Guidance Using Clare’s Chocolate Cafes as an example, explain the importance of: People Process Physical evidence Note: Responses should relate to the cafes and not the hand-made chocolate products

People Process Physical evidence The role of people in the marketing of products or services in the organisation including: Customer interaction Customer service Service quality Internal marketing The importance of process in the marketing of products or services including: Customer transactions Order processing Database management Service delivery After sales care Relevant examples might be: Premises Equipment Documentation Signs Uniforms Logos etc

Assessment Guidance Changing market conditions How Clare’s Chocolates’ marketing mix responds to changing market conditions Note: Changing market conditions should be described in relation to the organisation’s external environment, and 3 examples should be provided of how the marketing mix has (could be) changed

Assessment Appendices Bibliography Title page Student Declaration Form Appendix 1 Appendix 2 Bibliography Title page Word count Student Declaration Form Contents page (page numbers!)

Student Declaration Form Copy on SSS

Brussel Sprout Relaunch Apply the marketing mix to a product Group Activity 1 Brussel Sprout Relaunch Apply the marketing mix to a product

Ryanair Apply the extended marketing mix to a service Group Activity 2 Ryanair Apply the extended marketing mix to a service