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You are here: Home / Marketing / Marketing mix element: People

Marketing mix element: People

Updated on April 14, 2022 by Ahmad Nasrudin

Marketing mix element People

People refer to those who deal with customers. That is one of the seven aspects of the marketing mix. They are essential for marketing success because their service has a direct impact on customer satisfaction and loyalty.

What is the marketing mix?

The marketing mix is ​​a set of strategic marketing elements. Marketers must consider all of these elements in developing marketing programs. Every part has an influence on marketing success.

The conventional marketing mix element consists of four components:

  1. Product
  2. Price
  3. Place
  4. Promotion

Then, the expert extends the part by adding:

  1. People
  2. Physical evidence
  3. Process

Products refer to the goods or services offered by the company. The company presents products to satisfy consumer needs, and the product must have a minimum level of performance for it. Besides performance, attributes such as features and design are also critical.

Price represents the value of a product. To do this, companies might choose a differentiation strategy or cost leadership. Differentiation allows companies to offer premium prices. Meanwhile, cost leadership means a relatively low price compared to the industry average. Factors affecting price determination include production costs, competitive strategies, consumer demographics, and competition.

Place refers to the location of the product being sold. The right site makes it easy for consumers to buy, so the product is available when they demand it. It must also be supported by a distribution system. Some details to consider include geography, shelf placement, signage, and even online channel options.

Promotion is about making consumers aware of and interested in buying. That might involve advertising, direct marketing, public relations, personal selling, incentives, social media campaigns, or sponsorship. The more exposed to consumers, the more effective the promotion. That way, the higher the opportunity for consumers to buy products.

Physical evidence refers to evidence that a company and its offer are present in the market. That is proven through the presence of storefronts or other marketing facilities.

Process refers to various marketing systems or processes in which the company creates value propositions and products, communicating them to customers to collect payments for it.

People refer to individuals who engage in marketing activities and interact with customers. They might be marketers, salespeople, or customer service officers.

Why are “people” critical?

Customers are a source of income for a business. When they buy goods and services, they hand over money as payment. The company needs the money to make a profit.

Unsatisfied customers eliminate sources of income. A business cannot sell its goods or services. Therefore, they do not make a profit.

When companies cannot sell enough goods for a long time, they are out of business. They need money to pay employees, operate machinery, and pay rent. Therefore, low sales cause more significant losses.

Customer satisfaction does not only depend on the product itself. But it also depends on support services, such as excellent customer service. And at this point, the people in the organization contribute to that satisfaction, both directly and indirectly.

Some employees interact with customers, both before, during, and after the purchase of goods or services. Such interactions can have a direct effect on whether the customer will buy from the company again.

Excellent service stimulates buyers to return and be loyal. High loyalty leads to increased sales and profits. Because the company and its competitors target the same customers, loyalty means customers don’t go to bring money to competitors.

How to improve human resources to maximize customer satisfaction

First, the company certainly needs a strategy. They must develop various value creation strategies. Say, the company decided to provide superior after-sales service and customer service.

Customer service may include a guarantee and refund when the product does not match what the company has promised. Companies can also provide guidance services on how to maximize product performance. Maintenance services are also essential to maintain that performance.

The company should also have a customer complaint procedure. It includes how employees handle customer complaints and who handles them.

The company also needs to notify customers about the progress of handling their complaints. That way, they feel the company is responsible and willing to listen to them. If done well, it allows customers to return to the company.

When companies have established various strategies and targets, they map out human resource needs. Companies adjust the recruitment process to ensure they get the best quality staff. That way, qualified staff support the company’s strategy.

Employee training is a must. That’s to ensure a high standard of customer service. Training allows employees to have broader knowledge and be able to provide high standards of customer service.

Topic: Marketing Mix, People Category: Marketing

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