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Why was there a need to introduce three additional Ps in the marketing mix?

The marketing mix was expanded to include three additional Ps to better accommodate the distinct characteristics of service-oriented businesses.

The original marketing mix, commonly referred to as the 4Ps—Product, Price, Place, and Promotion—was formulated by E. Jerome McCarthy in the 1960s. This model was primarily tailored for product-centric businesses. However, as the service sector expanded, marketers recognized that the traditional 4Ps framework did not sufficiently address the unique attributes of service businesses. As a result, three additional Ps were introduced: People, Process, and Physical Evidence.

  • People encompasses all individuals who are directly or indirectly involved in the consumption of a service, including both employees and other customers. In service-based businesses, the interactions between employees and customers can significantly influence customers’ perceptions of the service. It is, therefore, essential to ensure that employees receive thorough training and are equipped to deliver outstanding customer service.

  • Process refers to the series of procedures, mechanisms, and activities through which a service is delivered. This includes the entire customer journey, from the initial discovery of the service to post-purchase interactions. A well-structured process can enhance the overall customer experience, resulting in increased satisfaction and loyalty.

  • Physical Evidence pertains to the tangible elements that customers encounter while engaging with the service. This may include the physical environment where the service is provided, the equipment utilized in service delivery, or any physical materials associated with the service. Physical evidence plays a crucial role in making the service more tangible and relatable for customers, which is particularly vital for services that are inherently intangible.

In summary, the introduction of the three additional Ps enriches the marketing mix by addressing the specific needs of service-based businesses. These elements help to tackle the unique characteristics of services, such as their intangibility, variability, and perishability, which are not adequately captured by the original 4Ps model. By incorporating these additional factors, marketers can devise more effective strategies for promoting and delivering their services.

Answered by: Dr. Lucas Brown
IB Business Management Tutor
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