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NotesBusiness ManagementTopic 4.5People, process and physical evidence
Back to Business Management Topics
4.5.51 min read

People, process and physical evidence

IB Business Management β€’ Unit 4

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Contents

  • The extended marketing mix
  • People, process and physical evidence explained
  • Why the 7 Ps matter for services

πŸ”„ The extended marketing mix β€” 7 Ps

Big Idea: The original 4 Ps (product, price, place, promotion) work well for goods. But for services, three extra Ps are needed: People, Process and Physical evidence. Together they make the 7 Ps! 7️⃣

Services are intangible β€” you can't touch or see them before you buy. The extra 3 Ps help customers feel confident about what they're buying.

πŸ§‘β€πŸ’Ό People

  • The staff who deliver the service
  • Their skills, attitude and appearance shape customer experience
  • Good training β†’ better service β†’ happier customers
  • Applies to everyone: frontline staff, managers, customer support

πŸ”„ Process

  • The systems and steps used to deliver the service
  • Smooth, efficient processes = happy customers
  • Slow, confusing processes = frustrated customers
  • Examples: online booking systems, check-in procedures, delivery tracking

🏒 Physical evidence

  • The tangible clues that show the quality of the service
  • Decor, cleanliness, uniforms, website design, packaging
  • Helps customers judge quality before (and during) the experience
  • A messy restaurant or a badly designed website sends the wrong message
Example: A luxury hotel invests in friendly, well-trained staff (people), a seamless online booking system (process), and elegant decor with high-quality toiletries (physical evidence).

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❓ Why do the extra 3 Ps matter?

  • Services can't be tried before buying β€” the 3 extra Ps build trust
  • Customer experience IS the product for service businesses
  • Small details (clean toilets, friendly staff, fast wifi) can make or break a service
  • Helps service businesses differentiate from competitors
Exam tip: If the case study is a service business (hotel, school, airline, restaurant), you MUST discuss people, process and physical evidence β€” not just the basic 4 Ps.

Related Business Management Topics

Continue learning with these related topics from the same unit:

4.1.1What is marketing?
4.1.2Market and market share
4.1.3Branding and brand awareness
4.1.4Market segments and segmentation
View all Business Management topics

Improve your exam technique

Command terms, paper structure, and mark-scheme tips for Business Management

IB Exam Questions on People, process and physical evidence

Practice with IB-style questions filtered to Topic 4.5.5. Get instant AI feedback on every answer.

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How People, process and physical evidence Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

Define

Give the precise meaning of key terms related to People, process and physical evidence.

AO1
Describe

Give a detailed account of processes or features in People, process and physical evidence.

AO2
Explain

Give reasons WHY β€” cause and effect within People, process and physical evidence.

AO3
Evaluate

Weigh strengths AND limitations of approaches in People, process and physical evidence.

AO3
Discuss

Present arguments FOR and AGAINST with a balanced conclusion.

AO3

See the full IB Command Terms guide β†’

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4.5.4Promotion
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Adapting the marketing mix4.5.6

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