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| Tuesday, 15 June 2004 |
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The people 'factor' in marketing by Prasanna Perera, Marketing and Management Consultant - Chartered Marketer CIM, UK
Traditionally, the marketing mix comprised the 4 Ps, namely Product, Price, Place and Promotion. With the growing interest in the marketing of services, the marketing mix was extended to 7Ps, with people, process and physical evidence being included to the original 4Ps. This brief article will focus on one of the 'included Ps namely 'People'. What is meant by 'People' in marketing? Customers, Suppliers, Intermediaries, Employees.... the list goes on. When 'People' are considered in the marketing mix, it relates to employees who plan and implement marketing programs to targeted customer/customer segments. Employees in non-marketing functions too could be included, since marketing in the real sense is everybody's responsibility. (Marketing as a philosophy in business). Why is it important to include 'people' in the marketing mix? The conventional marketing mix (4Ps) is externally directed at the market and virtually ignores the 'internal market'. For example, customers are not concerned about distribution, but rather the 'convenience' afforded through sound distribution methods. The 4Ps are focused on what marketers provide their customers rather than for them. (Internal customers, especially those performing marketing functions). By including the people dimension, this limitation can be overcome. Another criticism/limitation of the 4Ps is that a mechanistic view is taken about markets. In today's hyperactive and complex markets, a mechanistic outlook is clearly inadequate. What is required is a more evolving outlook, based on flexibility, speed and human relationships. (Networking). These limitations, are a clear indication that the 'human aspect' is missing in the traditional marketing mix. As such, it seems logical that the marketing mix, should include this important factor i.e. 'People'. The 'People' factor examined Including people into the marketing mix, is essential for many reasons. Let me briefly examine them. Marketing is a profession and very much focused on what people do. It is something done for people by people. Whilst marketing theory is important, it is practice that provides results. In order to effectively practise marketing, people of the right background are required. A second important reason for including people in the marketing mix, is that it is often people, that make a difference, between competing suppliers. Take for example, a service industry such as airlines. What makes one airline exceedingly different to another? The quality of the aircraft's, sophisticated reservation systems? In the final analysis it boils down to the service provided during pre-flight, post-flight and during the flight. This service is provided, by none other than people, which in this case is the staff of the airline. A third important reason to include people, is that they have to be managed, in order to motivate them to provide consistent and excellent service. Consistency of service, is important in the final analysis. Take the airline example. The requirement would be consistency of service, through pre-flight, during the flight and post-flight. (Basically the total experience of the passenger). Poor service during any one of these stages, can undermine the superior service provided by another. The challenge therefore for marketing practitioners is to manage the 'people' aspect carefully, in order to provide customers a totally rewarding and satisfying experience. However, this is easier said than done, for the following reasons:- (a) People are different. They come from different backgrounds (b) People are emotional. They have their moods, problems and successes. (c) People have different personal objectives and aspirations. Finally, not only marketing planning but implementation activities are carried out by people. In the final analysis, a sound plan has to be effectively implemented, in order to achieve the desired results. It is only through able and motivated people, that this is possible. Service industries and the 'people' factor Services by their very nature are intangible. This intangibility challenges marketers, to manage service marketing operations effectively. Take for example the insurance industry. Insurance services are intangible and offer customers a 'basic promise'. The people who market insurance can make this offering tangible, by providing excellent service to their customers. Customers buying into "a promise" need to be assured and reassured that this promise will be fulfilled. As such, people marketing insurance should be able to provide a high quality service, on a consistent basis (consistency is the key factor). Let us examine a second service industry, namely, the hospitality industry. What differentiates an excellent hotel from an average one? There are of course many factors, that will need to be considered. Among these factors, would undoubtedly be the service element, which is provided by the staff. Most star hotels are similar in their offerings. A variety of fine dining restaurants, business centres, modern rooms with amenities etc. In such an environment, it is the service factor that can and will make the difference. Motivated employees, specially, contact employees, are key to the success of organisations in the hospitality industry. By reflecting on these two examples, it is quite clear that it is people that make the difference, in the final analysis. Although the emphasis is greater on contact employees, non-contact employees cannot be ignored. These non-contact employees are expected to support the contact employees, in their endeavours to satisfy customers. Conclusion In order to further expand, on the people factor, the concept of internal marketing is widely practised. Through internal marketing the objective is to internalise the marketing concept and thereby provide the desired level of customer service, which makes a difference in a competitive environment. Marketing simply cannot be practised without people. Therefore effective implementation of marketing strategy requires the management of people, who make it happen. We now see the importance of HR management and the linkage between marketing and HR. These two disciplines complement each other and a cross appreciation of same will be useful. "People make a difference. Especially in a discipline where people deal with other people" |
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