4.5(e) People

The marketing of services

Services are intangible products, like haircuts or museum visits, that consumers consume but don't physically own. Unlike goods, services are perishable and heterogeneous, meaning their quality and experience can vary.
Businesses offer services to both individuals and other organizations. Customers pay for services to fulfill their needs, such as gaining expert advice or professional support.
To effectively market services, businesses need to differentiate their offerings. While the traditional marketing mix (price, product, promotion, place) applies, the marketing of services requires three additional elements: people, processes, and physical evidence. Together, these form the 7 Ps model of the marketing mix for services.

People are the employees who directly interact with customers, delivering the service. Their commitment and abilities are crucial for a successful service business. For instance, well-trained teachers and friendly hotel staff contribute significantly to customer satisfaction.
The reputation of a business depends largely on its employees' training, motivation, and communication skills. These factors can be assessed through their appearance, body language, aptitudes, attitudes, and feedback from customers.
Appearance and body language convey a company's image. Professional attire and friendly demeanor, like McDonald's "Smiles are free" policy, can enhance customer perception.
Aptitudes and attitudes are also important. Employees should have product knowledge, be proactive, caring, courteous, and confident. Positive responses in these areas lead to satisfied customers and positive word-of-mouth.
Feedback from customers, employees, and other stakeholders provides valuable insights into employee effectiveness. Suggestion schemes, complaint records, and employee recognition programs can help improve service delivery and customer relations.
Efficiency is another key factor. Timely service and minimal errors contribute to a positive reputation. Staff training ensures efficiency, while delays and mistakes can harm a business's image and marketing efforts.

Cultural differences significantly impact how people interact with customers. For instance, in some cultures, direct disagreement or critical feedback is considered rude, while in others, it's expected. Similarly, eye contact can be interpreted differently across cultures, with some considering it disrespectful and others seeing it as a sign of engagement.
Cultural variations also influence customer service practices. In the USA, supermarket staff often assist customers with bagging groceries, while in Germany, customers prefer to do it themselves. Additionally, customer service personnel in the UK tend to be more formal and conservative compared to their French, Italian, and Spanish counterparts.