While the concept of 4Ps of the Marketing Mix applies to physical goods, the concept of 7Ps of the Marketing Mix applies to marketing of services. 7Ps of the Marketing Mix of services is comprised of Product, Price, Promotion, Place, Process, People and Physical Evidence.
Let’s take a look in details at Process, one of three additional Ps in the marketing of services.
What is mean by Process in Marketing Mix?
Process means the way in which a service is provided to the customer. It is the actual procedure, mechanism and flow of activities through which a service is delivered. All these systems support the delivery of services along the way demonstrating the benefits to the final clients.
The dimensions of a process’s efficiency and effectiveness:
- Length: The number of steps that participants have to follow in order to effect service delivery.
- Duration: The time that elapses from the first to the last activity of the service delivery process.
- Logistical effectiveness: The degree of smoothness in the flow of the steps of the service delivery process.
A business selling physical goods tends to have an easier task in demonstrating the benefits of goods to its customers. A business providing intangible services tends to have a more difficult task in demonstrating the benefits of services to its customers.
It is because the process might be complicated and complex, e.g. insurance policies, wealth management services, sophisticated banking.
Why are processes important?
The purpose of having well-established systems includes fulfilling customer expectations and maximizing customer satisfaction.
Therefore, processes are crucial to customer loyalty as they will determine whether the customer will repeat the purchase in the future.
Without good processes, or when changes have negative impact on a process, all of the other 6Ps of Marketing Mix will be undermined.
What does Process in the marketing of service include?
People consumer services differently, and the processes customer will have to go through to acquire the service will be different in different service-based companies.
Typically, the P of Processes in the marketing of services includes a few common elements.
1. Ordering
Finding the availability of services should be made easy for customers. In order to order a service, customers may need to contact the business personally (make a phone call or send an E-mail to book the hotel room), register their intention (e.g. send a child to a kindergarten) or by filling in the form either as hard copy or electronically using technology (e.g. book train tickets in the smart phone app).
While the ordering process should be as short as possible, some services such as buying insurance policies from insurance brokers or signing up for wealth management programs at banks might be lengthy due to their complexity.
2. Payment methods
These days many businesses offer customers many different methods of payment. These may include: cash, debit card or credit card, cheque, bank transfer, trade credit with payment after 30 days, payments in installments, leasing, hire purchase, etc. All these payment methods make the process of paying for a service much more convenient for customers. It does not matter how it is paid, as long as the product is sold and the cash is received.
3. Waiting time
People should not have to wait for a service, therefore companies need to manage the waiting time of their customers in an appropriate way. Otherwise, disgruntled customers may complain which will result in negative consequences for the business such as bad image. If customers need to wait for a service anyway, the waiting time should be decreases to the minimum. The firm should also try to compensate customers in some way for their inconvenience, for example offer a small discount, a peripheral product such as a refreshing drink, a newspaper, etc. or a coupon for future purchase.
4. Customer services
Offering excellent customer service and support will enhance the shopping experience. Customer service refers to attentiveness, care and politeness of workers towards their customers during, and is essential for building customer loyalty. Staff should never let their customers down, but shall always assist customers throughout the whole buying process. Example of customer service might include having staff to assist customers to their seats on the plane to show courtesy, the way that food is presented and served in the restaurant, or how quickly questions about the product are answered by sales staff.
5. After-sales care
Receiving after-sales care is very important for some customers. These type of services are offered following the successful sale of the product. After-sale care might include things such as technical support, regular maintenance, guaranties (an assurance from the company that the product is of specific quality and will perform satisfactory for a given period of time), warranties (a written promise from the company to repair or replace the product that develops a fault within a particular period of time), additional subscriptions, etc. A business can gain an advantage, if it provides after-sales services.
6. Delivery processes
Businesses can make their buying processes more attractive by offering a delivery service, unboxing and installation. Providing a range of options for the delivery service, whether it is free of charge or not, can give a business a competitive edge over competition. This improves the buying process for customers. It is considered a nice gesture to remind the customer beforehand that things are ready and it is his turn to receive a service.
7. Feedback & Handling complaints
Feedback is usually given by satisfied customers on the quality of customer service. It usually exists in the form of customer service satisfaction surveys, suggestion boxes, comment cards, recommendation schemes, etc. On another hand, when it comes to customers who are dissatisfied with the quality of service that had received, the business will have to handle their complaints. Large businesses have separate departments who deal with unhappy customers to comfort them.
Processes are important as they can determine whether customers will make repeat purchases. For example, if customers experience excellent standards of customer care at a spa or hair salon, they are likely to tell their friends and family, perhaps spreading the message on their social networks. This can provide the business with vital word of mouth promotion and viral marketing.
