Place: Place decisions are those associated with channels of distribution that serve as means for getting the product to target customers. The means by which the product is distributed to the consumers, making decisions about the way in which the product will be physically distributed, choosing the right place/time, how the product is sold. Decisions include market coverage, logistics, levels of service, target customer, accessibility, financial costs.
Product: Businesses must make sure that their products are meeting the needs of their customers i.e. paying attention to the features. Features include: appearance, packaging, how the product will be used, product life cycle, USP, market position, financial factors. The scope of Products includes specifications of the goods and warranties, guarantees and support.
Packaging: How the product is presented to the customers, vital as packaging is often the first contact the customers make with products. Also protecting goods for distribution, storage, sale and use of consumers.
People: All people directly or indirectly involved in the consumption of a service: Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. Workers should be well trained to have proper motivation and ethics. The use of appropriate staff and people is vital. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for.
Process: Procedure, mechanisms and flow of activities by which services are consumed, the systems used to assist the firm in delivering the service/goods. E.g. Mcdonald’s food in 2 minutes.
Physical Evidence: Proving that the goods are actually distributed. The ability and environment in which the service is delivered, both tangible goods that help to communicate and perform the service and intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers. Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations. consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service.
