The Marketing Mix: Physical Evidence (HL IB Business Management)

• The physical environment in which a business operates greatly impacts customer perceptions
  
  
• This includes factors such as store layout, interior design, lighting, colours, music and overall ambiance

• Celine's high-end fashion boutique in London uses elegant decor, soft lighting and soothing music to create a luxurious and exclusive atmosphere

Packaging

• The design, quality and functionality of product packaging contribute to the overall impression customers have of a brand
  
  
• Packaging should be visually appealing, informative and aligned with the brand identity so as to differentiate a product from competitors

• Each product sold by beauty retailer Lush displays its simple business logo prominently on the front, ensuring that the brand is immediately identifiable
  
  
• In line with its CSR concerns, all pots and bottles are made from BPA-free 100% recycled plastic and all containers are recyclable via an in-store programme

• Clear and attractive signage helps customers navigate and locate products or services within a physical space
  
  
• Effective signage can provide important information, promotions or branding messages
  
  
• Eye-catching displays can draw attention to specific products or offers, influencing purchase decisions

• The Adidas flagship London store is full of innovative, informative displays and flexible design
  
  
• The store includes movable cabinets and displays that allow staff to easily adapt merchandising activity
  
  
• A dedicated ‘Marley’ sneaker display explains how the product is made using ocean plastics and augmented reality displays adding an extra visual layer to in-store promotional activity

• A well-designed and user-friendly website, social media profiles, online reviews and customer testimonials can act as virtual physical evidence which provides customers with information and reassurance about the brand

• In 2018, KFC showed how digital marketing is done with its response to the now infamous chicken shortage which happened when the company switched to a new supplier and was unable to meet demand
  
  
• Instead of shifting blame KFC took it in good humour, launching a “find my chicken” bot on Twitter, allowing customers to locate their nearest fully-stocked branch

Staff Appearance and Behaviour

• The appearance, professionalism and behaviour of employees representing a business contribute to the physical evidence
  
  
• Uniforms, grooming standards, and courteous behaviour impact customer perceptions and the overall experience
  
  
• Friendly and knowledgeable staff can instil confidence and build trust

• Legoland identified that all staff needed to be easily identified in each of the three theme parks site they operate in Europe
  
  
• All staff wear the same vibrant, consistent, comfortable and sustainable uniform that meets Legoland's branding requirements

• The quality and condition of equipment and facilities in a business also form part of the physical evidence

• The Yooma Urban Lodge in Brussels has modern and well-maintained amenities and innovative rooms aimed at families that create a positive impression on guests

• Printed materials such as brochures, catalogues, business cards and product samples are physical evidence that customers can touch and take away to serve as a physical reminder of the business and influence purchase decisions

• Independent schools and universities produce glossy informative brochures that are often distributed during open events or are available on request

• The product/service is the heart of the marketing mix as it is what the customer is buying and all other elements are based on it
  • The product determines the price, the target audience, and the promotion strategy
     
• If the product changes then all other elements of the mix will likely need to change
  • E.g. if a business decides to launch a premium version of its product, it may need to increase the price, target a different audience and use a different promotion strategy to reflect the new product's value

• The price of a product is closely linked to its perceived brand value
  • If a product is priced too high it may be perceived as too expensive by the target audience leading to lower sales
  • If a product is priced too low it may be perceived as low quality leading to lower sales
    
    
• Increasing the price may require changes to the promotion strategy which are aimed at convincing consumers of the products value

• The promotion strategy can affect the price and distribution channels
  • E.g. If a business decides to launch a high-end promotion strategy, it may need to increase the price to reflect the product's value

• The distribution/sales channels can affect the price and promotion strategy
  • E.g. if a business decides to use exclusive distribution channels, it may need to increase the price to reflect the exclusivity of the product