People, Process and the Physical Environment (AQA A Level Business): Revision Note

Salespeople, customer service representatives or employees in a retail outlet have direct contact with customers 

These interactions can influence customer perceptions, build relationships and shape the overall customer experience

Employees' knowledge, enthusiasm and passion for the brand can have a significant impact on how customers perceive and connect with the brand

Positive interactions with knowledgeable and helpful employees can enhance brand loyalty

Skilled customer service employees can address customer inquiries, resolve issues and provide personalised support

Positive customer experiences contribute to customer satisfaction, repeat business and positive word-of-mouth recommendations

Employees' observations and feedback can help identify emerging trends, customer preferences and areas for improvement

This information is crucial for refining marketing strategies, developing new products and enhancing the overall customer experience

Skilled sales employees can understand customer needs, provide tailored solutions and effectively communicate the benefits of a product or service

Their ability to build relationships, address objections and close sales is essential in achieving marketing objectives

Processes directly impact the overall customer experience

• They include everything from how customers discover a product 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 customer skin, which means appropriate skincare products can be recommended

Effective processes improve efficiency, streamlining operations and reducing costs

By carefully designing and planning marketing processes, businesses can improve the use of resources such as staff and cash

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

Processes help to maintain consistency because they provide a framework for delivering consistent messages, branding and experiences

Consistency builds trust, reinforces brand identity and helps develop long-term relationships with customers

The Economist uses its established brand 'tone of voice' consistently across all of its social media channels

Posts are informative and factual, and its language is brief and clear and uses everyday speech

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

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

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 collaboration tools which allow rapid approval of promotional activities

It also keeps a timeline of task completion so that anyone involved in the project can instantly see its progress

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 ambience

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

The design, quality and functionality of packaging contribute to the impression customers have of a brand

Packaging should be visually appealing, informative and aligned with the brand identity to differentiate a product from competitors

Each product sold by beauty retailer Lush displays its simple logo prominently on the front

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

Signage provides key 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

Augmented reality displays show how products are made using ocean plastics

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

In 2018, KFC showed how digital marketing is done with its response to a chicken shortage caused by the company's switch to a new supplier

Instead of shifting blame the business launched a “find my chicken” bot on Twitter, allowing customers to locate their nearest fully-stocked branch

The appearance, professionalism and behaviour of employees representing a business contribute to 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 the company'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 such as Kent College produce glossy, informative brochures that are often distributed during open events or are available on request