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People, process and physical evidence

IB Business Management β€’ Unit 4

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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.

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