Amount of money
received by a company
for their product
Importance
Has to be set at a level
customers are willing to pay
Has to cover costs
while making a profit
Consumers use price as a
measure of quality - high price
may infer a higher quality
Alter to Enhance Effectiveness
Decrease - compete better
with competitors, sales could
increase if it's more affordable
Increase - produce may
appear more exclusive and
sales revenue could increase
Product
The product or service
offered to the customer
Importance
The product must be in demand
by consumers, otherwise they will
not buy it
Alter to Enhance
Effectiveness
Improve the apperance
Introduce whole new product range
Expand product range by
introducing new variations
Improving the product will
retain existing customers
and attract new customers
Place
How the product is
taken from supplier to
customer, e.g. direct,
through wholesalers
etc.
Importance
Consumers should be able
to purchase products where
they expect to see them
Alter to Enhance Effectivenss
Changing where the product is sold could encourage
more people to buy e.g. on-line, mail order etc.
Promotion
How a business communicates with its
customers and makes them aware of their
product/service and encourages them to buy
Importance
It creates consumer awareness and
encourages them to buy
Alter to Enhance Effectiveness
Introduce advertising
Introduce offers e.g. BOGOF
Free samples
Money off coupons
Physical Environment
(Evidence)
The ambience, mood or physical
presentation of the environment
Importance
Published customer feedback can reinforce
the businesses claims of good service
Surroundings may convince customer to
purchase - true of services as there are
no physical attributes to a service (at end
of service - there will be an outcome)
Alter to Enhance Effectiveness
Buildings, equipment, signs, logos,
brochures, websites, uniforms etc. can
all be enhanced to encourage purchases
Encourage customers to leave feedback
following any purchase - can be printed
on promotional literature etc.
People
Anyone who comes into contact
with the customers - can have a
positive or negative effect
Importance
Customer experience will leave a lasting
impact - inefficient employees will create
a bad reputation, lower sales & profits etc.
Alter to Enhance Effectiveness
(Corporate Culture) staff should be well
trained, knowledgeable about areas of their
work, and have good customer service skills
(Corporate Culture) Good service
offered to customers is rewarded e.g.
service awards, staff newsletters etc.
Process
The procedures, mechanisms and
flow of activities involved in giving
the service to the consumer
Importance
Following procedures ensures that a consistent level of
service is maintained - customers have a good experience
Alter to Enhance Effectiveness
Procedures should be developed in relation
to greetings, waiting periods, booking systems
etc. - increase in customer satisfaction