Essay on the Impact of Service Marketing Mix on Customer Satisfaction

In todays business world, there are many players in the same industry selling similar or closely related products and services. As such, companies need to compete to grow and survive. As a means to overcome competitors, businesses have to focus on ways of satisfying customer needs and nurturing long-term relationships (Wieland, Koskela-Huotari & Vargo, 2016). As a way to achieve this goal, businesses must understand the specific elements in the marketing mix. These are to be practiced to attract customers and make them feel satisfied. The service marketing mix focuses on the blending of different elements in such a manner as to attain consumer and organizational objectives. The components are the 7Ps of marketing, which are product, price, place, promotion, people, processes and physical evidence (Proctor, 2010). When the seven elements are blended well, they lead to customer satisfaction, which is an indication of the extent to which customers needs and expectations are met.

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The part of people refers the staff working in an organization. It includes senior management and the salespeople. People are an essential consideration for effective marketing and thus customer satisfaction. According to Lusch, Vargo and Tanniru (2010), customer satisfaction is directly influenced by the people representing the business. It is because people are the only element in the service market mix that can interact directly with customers (Yazdanparast, Manuj & Swartz, 2010; Chernev, 2014). In this regard, successful organizations gain competitive advantages by recruiting and training the right staff that can help not only in marketing and selling the product but also in developing and maintaining fruitful relationships with customers. As noted by French (2009), the people element is important because it aids in providing excellent customer service, which enhances customer satisfaction.

Product describes what a business is selling and includes all the benefits, features, and advantages that customers can get from using the product (Lusch, 2011; Tedlow & Geoffrey, 2014). When developing a product or service, businesses need to consider the needs and preferences of customers and how they can be satisfied (Tellis, 2013; Moore, 2011; Stapenhurst, 2009). Product contributes to high levels of customer satisfaction if it strikes a good balance between what customers are looking for and what the product offers. Usually, customers preferences change top often (Luan & Sudhir, 2010; Katz, 2013; Colin & Wilson, 2012). Therefore, it is imperative for businesses to keep up to date with latest trends regarding customer needs and market dynamics. It can be achieved through market intelligence.

Price refers to what it costs customers to get the service or product they want. Pricing is an important strategy in marketing because it determines the ability of a business to attract customers and make more sales (Kotler, Keller, Ang, Leong & Tan, 2012; Tokman & Beitelspacher, 2011; Graeme, Ensor & Ashford, 2010). Setting prices too high may discourage customers while setting it too low may lead to reduced profits. Therefore, businesses set their prices at equilibrium levels taking into account the market forces of demand and supply, as well as competitors moves (Shoham, Brencic, Virant & Ruvio, 2008). As a need to attract more customers and maintain the competitive edge over rivals, it is necessary to consider seasonal pricing and discounts.

Promotion refers to the ways of keeping customers informed of the product and its benefits. Businesses use a combination of different promotional activities to make customers aware of the goods and services (Kotler & Keller, 2009a; Osborne, Radnor & Nasi, 2013). These activities include advertising, direct marketing and sales (Ryan & Jones, 2009; Tsiotsou & Goldsmith, 2012). Evidence from research shows that use of promotional strategies can lead to improved customer satisfaction, enhanced brand reputation and better sales. Most companies use a combination of promotional strategies to attract customers and make them more satisfied.

The element of place describes the location where the product is sold to customers. It is where the product is seen, sold or distributed to the customers. It can be a physical retail store (brick-and-mortar) or an online store (Kotler & Keller, 2009b; Wayland & Cole, 200; Cui & Yang, 2009). Effective place strategies ensure that customers can easily locate the business and buy the product they want (Lusch, Vargo & Wessels, 2008; Weinreich, 2010). A strategic business location ensures better business visibility, which leads to consistent customer traffic. Businesses can distinguish themselves from competitors through effective visual merchandising techniques and by using more innovative strategies to design the retail spaces.

Process refers to the various stages and activities involved in delivering a product and service to the customers (Hochbaum, 2011; Marilen, Cristina & Claudiu, 2009). Having good processes ensures rapid and timely delivery of products to customers. It, in turn, saves time and resources by increasing business efficiency. Processes also make it possible for businesses to repeatedly deliver the same service standard to customers (Kyrgidou & Hughes, 2010). Physical evidence describes the ambiance and other physical attributes of the point where customers interact with the sales and marketing staff. This element is particularly relevant for businesses that operate out of shops. Customers will make perceptions based on the physical outlook of the store, as well as the perceptual plan of the service.

References

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