IBBusiness ManagementHLRevision Notes4. Marketing4.5 The Marketing Mix (7 P's)The Marketing Mix: Processes

The Marketing Mix: Processes (HL IB Business Management)

Revision Note

Flashcards
Lisa Eades

The Importance of Processes in the Marketing Mix

  • Processes refer to the activities, procedures and systems a company employs to deliver a product or service to its customers and create a competitive advantage
     

Diagram Showing the Reasons why Processes are Important

Effective processes in the marketing mix ensure a good customer experience, consistency in messaging, efficiency, adaptability and alignment with business goals

Effective processes form an important part of the extended marketing mix

 

  • Businesses develop a set of processes that allow for a product or service to be delivered effectively to their customers
    • E.g. from the moment cruise passengers book their trip a series of process are engaged
      • Online booking and customer service processes provide for smooth organisation and preparation for the trip
      • When they arrive at the dockside customers are greeted
      • Their baggage is taken to their allocated cabin
      • Two weeks of services from restaurants and evening entertainment, casinos and shopping are organised
      • Specialist services and facilities are offered to those with particular needs 
          

The Importance of Processes


Reason for Importance
Explanation
Example

Customer experience

  • Processes directly impact the overall customer experience as they involve everything from how customers discover a product or service to how they make a purchase, receive support and interact with the brand

  • Well-designed processes provide a seamless and positive customer journey, enhancing customer satisfaction and loyalty

  • L’Oréal uses artificial intelligence to improve the customer experience

  • Face-scanning sensors measure a customer’s skin which allows appropriate skincare products to be recommended to customers

Efficiency

  • Effective processes improve efficiency, streamlining operations and reducing costs

  • By carefully designing and planning marketing processes businesses can eliminate redundancies, automate repetitive tasks and improve the use of resources

  • This leads to reduced timescales, increased productivity and profitability

  • Air BnB hosts are encouraged to provide self check-in facilities, removing the need for the host to be present when guests arrive at their property

Consistency
  • Processes help to maintain consistency because they provide a framework for delivering consistent messages, branding and experiences whenever an interaction with customers occurs

  • Consistency builds trust, reinforces the brand identity and helps to develop long-term relationships with customers
  • The Economist uses its established brand 'tone of voice' consistently across all of its social media channels

  • Its posts are informative and factual, and its language is brief, clear and using everyday speech

Adaptability
  • Marketing processes need to be flexible and adaptable to changing customer preferences

  • By continuously monitoring processes businesses can identify areas for improvement and respond to emerging trends and challenges including the actions of competitors 

  • Passengers travelling with the airline Lufthansa no longer need a boarding pass or passport on the airline's route from Miami International Airport to Munich following the opening of America’s first all-biometric terminal, reducing check-in time to less than two seconds 

Alignment
  • Processes help different departments work together effectively to meet objectives

  • When teams work together within defined processes it improves communication and  coordination

  • At HubSpot, a leading business software company, cross-functional teams use a variety of collaboration tools which allow for the rapid approval of promotional activities

  • The business also keeps a full recorded timeline of task completion so that anyone involved in the project can instantly see the status of a project

 

Exam Tip

When businesses change their processes it is crucial that they are carefully tested in advance to ensure that customers can continue to access products or services seamlessly. IT-based processes are particularly prone to problems and a number of high-profile disasters have hit well-known brands.

  • In the early 2000's Hershey’s tried to squeeze a complex IT upgrade project into an unrealistic timeline and launched it during the busy Halloween season before its employees had been adequately trained on the new system 
    • As a result the business could not process $100 million worth of confectionery orders and suffered a 12% drop in sales
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Lisa Eades

Author: Lisa Eades

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.