People

The people element of the extended marketing mix refers to any member of staff who is in contact with the customers of a business.

Customers are important to a business. They are the people who buy the goods or services it provides.

If customers are not satisfied...

  • then the business will not be able to sell its goods or services...
  • therefore no profit will be made...
  • ...and the company may go out of business.

Customer satisfaction relies on good customer service. This is provided by the people who work for the organisation.

A cafe provides a case study on the importance of good customer service to a business.

The people (employees) who a customer meets before, during and after they have purchased a good or service can have a direct effect on whether customers will purchase from the company again.

If customers receive a good quality service...

  • they will be more likely to return (customer loyalty)...
  • which will lead to increased sales and profits
  • It would also mean that customers do not take their business to competitors.
Customers out shopping
Satisfied customers will continue to use a business and contribute to its profits