IBBusinessDPBusiness ManagementHLRevision Notes4. Marketing4.5 The Marketing Mix (7 P's)The Marketing Mix: Physical Evidence

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

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Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

DP Business Management: HLDP Business Management: SL

The Importance of Physical Evidence in the Marketing Mix

  • Physical evidence refers to the tangible and visible signs of a product/service that customers interact with and perceive during their buying experience

Diagram: visible and tangible signs

Elements of physical evidence in the marketing mix include the ambience, the packaging, the marketing materials, the signage and displays, and staff appearance
Physical evidence can take many forms in the extended marketing mix

  • It is a particularly important element for services as it helps to shape customer perceptions and build trust in a process where the intangible product cannot be viewed or touched by potential customers

    • Businesses use these physical aspects to delight customers and set themselves apart from competitors

Key Aspects & Examples of Physical Evidence in the Marketing Mix

Aspect

Explanation

Example

Store/Office Ambiance

  • 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

Signage and Displays

  • 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

Digital Presence

  • 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 they operate in Europe

  • All staff wear the same vibrant, consistent, comfortable and sustainable uniform that meets Legoland's branding requirements

Equipment and Facilities

  • 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

Marketing Materials

  • 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

Examiner Tips and Tricks

Physical evidence can support and embed a businesses unique selling point as it reinforces values and and provides visual cues with which customers may align.

For example, my local café thrives and defines itself with being a local, eco-friendly business among the mass of coffee chains with which it competes in the area. Everything is local — the ingredients, the plates and mugs and the decor (which includes pieces produced by local artists) comes from the surrounding area — and that's visible evidence of how it stands out from the chain outlets and maintains a loyal following.

Appropriate Marketing Mixes

  • The different elements of the extended marketing mix must complement each other and be appropriate for the business context, taking into account a range of factors

Diagram: factors in an appropriate marketing mix

Developing an appropriate marketing mix requires analysis of the product, target market, competition, use of the BCG matrix and the product life cycle,
Businesses should consider a range of factors when developing an appropriate marketing mix 

  • The stage of the product in its product life cycle is likely to affect several elements of the marketing mix

    • Promotional activity for a product in the maturity stage may need to be increased in order to differentiate the product from rivals

    • Low pricing tactics may be required during the introduction stage to persuade customers to purchase the product for the first time

  • The balance of products in the Boston Consulting Group (BCG) Matrix will inform the marketing mix chosen

    • Investment in seeking new distribution channels may be needed for star products

    • Improved staff sales training may be useful for question marks to increase market share over rivals

  • The type of product, including whether it is aimed at a mass or a specialised niche market is likely to affect the marketing strategies and tactics selected

    • In a competitive mass market extensive promotional activity and low prices may be required to maintain market share

    • A business that sells specialised products may make extensive use of personal selling and informative advertising to support its niche products

  • The businesses marketing objectives will have a direct impact on the marketing mix

    • A growth objective may require a business seeking new distribution channels

    • An objective to increase market share may require increased investment in promotional activity 

  • The target market is also an important factor in determining the marketing mix

    • Where the target market is relatively young digital promotional tactics may be effective

    • Older target markets may respond better to more traditional promotional activities and physical evidence such as brochures and direct mailings

  • The marketing activities of competitors is a key factor to be considered

    • If a significant competitor launches a new product, a business may need to invest in product or packaging upgrades or reduce prices to maintain market share

  • Market positioning will also inform the marketing mix

    • A business that positions its products as luxury items is likely to focus heavily on personal selling, high quality packaging and other physical evidence

    • Quality-focused businesses may use premium pricing and streamlining processes to ensure customers are fully satisfied with the purchasing process

Examiner Tips and Tricks

Evaluation by businesses of these factors should be a continuous process as their relative importance is likely to change over time, sometimes without warning.

How the Elements of the Marketing Mix work Together

  • The interaction between the elements of the marketing mix is crucial for the success of any marketing campaign

  • A change in one element can have a significant impact on the others

  • The marketing mix will change as a product moves through different stages of its product life cycle

How Changes to one Element can Change the Entire Mix

Changes to Product

Changes to Price

  • 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

Changes to Promotion

Changes to Place

  • 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

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    Reviewer
    Lisa Eades

    Author: Lisa Eades

    Expertise: Business Content Creator

    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.

    Steve Vorster

    Author: Steve Vorster

    Expertise: Economics & Business Subject Lead

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.