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Principles of Marketing

Midterm

MARKETING MIX
The marketing mix refers to all aspects and activities in the 4 P’s of marketing namely product,
price, placement, and promotion.
PRODUCT:
A product is anything that a firm offers to customer s(both consumer s and business buyers) for
acquisition use, or consumption. Consumer goods ideas, organizations, and people are examples of
product and services.
A product is an item that satisfies a need or a desire. This can be a physical item, a service or a virtual
offering. It is produced at a cost and is subsequently made available to the right audience at a price.
Whatever the nature of the product, it will follow a lifecycle and through reasonable predictions of this
lifecycle, a company can increase its competitive edge. A brand can be revamped or re-launched to
remain relevant in a changing market or at the end of its lifecycle.

A successful product has to fulfill a specific need in the market. Functionally, it must be able to perform
its function as promised. There also needs to be clear communication to users and potential customers
regarding its benefits and features. Branding is another important feature for a product. Developing a
product into a brand helps foster customer loyalty and recall and differentiate itself in the market.

Unique Selling Proposition

A factor that is shown to be the basis of why one product is better than its competitors is called a unique
selling proposition or a USP. This characteristic or set of characteristics helps solidify a company’s
market position and allows them to stand apart from competition. There are very few products that
have no clear competition in the market. Most often, there are identical products with almost the same
features. In this situation, differentiation becomes of the utmost importance for the success of any
product. The company needs not only to identify an USP, but also to clearly communicate this to the
potential audience so that it is understood why the product is superior to other similar ones.

To better understand what a product is , it is important to discuss its parts/levels. These parts
/levels also constitute the main characteristics of a product.
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PARTS/LEVEL OF A PRODUCT

Supplement
The add-ons of a product such as warranty, manner
of delivery, and credit terms

Tangible
The characteristics of a
product such as size, brand,
name, packaging, quality,
design, and features

Center
The reason why
consumers buy
a product

PARTS /LEVEL OF A PRODUCT

1. Center. This part/level refers to the primary reason and motivations of consumers for purchasing
a product. For example, a Laptop can be use both at home and in the office. For user at home , the
laptop can be used for Internet browsing , gaming, and simple word processing. For office users, on
the other hand , a laptop can help in designing presentation, drafting business letters and
conducting researches.
2. Tangible. This part/level pertains t the physical qualities/features of a product. For instance, the
tangible parts of a laptop include the scree, hardware, keyboard mouse pad, and speaker.
3. Supplement. Marketers offer supplements or add –ons to entire consumers to make a repeat
purchase of the product. Example of supplements or add-on include operating systems, long
warranty flexible payments terms, and games.

CLASSIFICATION OF PRODUCTS
The three classes of product are:
1. CONSUMERS PRODUCTS. These are products bought by consumers for their personal use and
consumption. Most of these products are considered basic goods, and consumers buy them most
frequently. Usually, marketers distribute these products in large quantities and make them
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accessible to consumers. It also pertains to specialized products bought by specific type of

consumers. Ex: luxury cars signature clothes expensive jewelry and five star hotel accomodation.
2. INDUSTRIAL GOODS. These are products /services used for the production of new products.
Depending on their use, industrial goods can sometimes classified as consumer goods. Ex: capital
goods, raw materials, and repairs supplies and services, Heavy equipment used in factories large
computer systems, building and warehouses used in many manufacturing firms are Ex; of capital
goods. Example of raw materials are, fruits, petroleum, ore. Repairs, supplies and services include
maintenance of equipment and operating supplies. Other types of services include consultancy
work, legal services.
3. ORGANIZATIONS/PLACES/IDEAS/PERSONS. When people try to market their skills and abilities, they
themselves become products . Job –seekers offer their services to land a position in the company

Tangible products: These are items with an actual physical presence such as a car, an electronic device,
and an item of clothing or a consumer good.

Intangible products: These are items that has no physical presence but can be felt indirectly. An
insurance policy is an example of this. Online items such as software, applications or even music and
video files are also intangible products.

Services: Services are also intangible products but they are the result of an economic activity that does
not result in ownership. It is a process that creates benefits for customers. Services depend highly on
who is performing them and remain difficult to reproduce exactly.

 Politicians market their flat forms and credentials during election campaign to voters'. All
organizations market their firms to attract more customers, employee and investors. Places like
Palawan and Boracay are marketed to attract visitors and generate employment. In advertising
companies ideas are pitched to potential clients.

PRODUCT DECISIONS
Marketers are faced with product decisions which they need to make develop a product that can
attract numerous consumers.
1. Product Attributes. These pertain to the quality design and features of a product. The quality of a
product refers to its performance and physical condition.
1. How can say that the product is of good quality
2. How can you improve the product features.
2. Branding. A brand is symbol, name design, or the combinations of all three that makes a product
distinct from its competitors. Marketer protect the brand names they carry by ensuring good
product quality and performance. A product with good brand image and recall usually reaps large
profits for a firm. Brand names are protected through business and intellectual property laws. Some
company use their own company name as their brand name. Ex: Del Monte and IBM. Conversely,
firms like Unilever carry numerous brands like Sunsilk, Clear, Creamsilk.etc.
3. Packaging. This refers to the appearance and design of a product ‘s wrapper or container. Marketers
weigh different factors when it comes t packaging. In terms of appearance, they consider the size,
weight, and type of packaging material to be used on a product. Marketers take into account the taste
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of consumers. They produce colorful, innovative, and creative packaging designs that are sure to catch
the eye of the consumers.
4. Labels. Labels are attached to provide the consumers the necessary information about the products.
Other than the product manufacturer’s name, labels also indicate the products’ expiration date,
nutritional contents, and manufacturing lcation.
5. Support Services. Marketers also offer product support services to consumers. Extending support
services is a way for marketers to review and improve a product/services is way for marketers to review
and improve a product/service’s performance and quality. Ex: of support services. Free car check ups,
laptop or computer software troubleshooting, electronics repair.
PRODUCT DECISIONS

With an understanding of the basic product mix and benefits, a company can now begin to make
important product decisions. These include:

Design Decisions: The basic decision here to identify how strong the design will be in the entire product
mix. Will it be a supplement to the features or will the features be designed around a unique design.

Quality Decisions: The quality of the proud needs is kept with the other elements of the marketing mix.
A high price can be charged if the product has superior quality.

Features Decisions: What will be the final features of the product? Will they add to the perceived and
actual benefits of the product? Here also, the company can charge a premium price for additional
desirable benefits from features.

Branding Decisions: Branding decision remain some of the most important as it turns a product into
something beyond just a good. A

PRODUCT LINE
Developing a product line is one of the best marketing strategies. A product line consists of
goods offered to the same target customers in the same locations or outlets. For firms with big product
lines, the task of marketers is to come up with marketing campaigns to market all of the products in the
product line. In this case, marketers have to think of additional overhead, promotion, and inventory
cost.
Marketers need to monitor closely the performance of each product in the product line.
Marketers create product line extensions by repackaging old products.

NEW PRODUCT DEVELOPMENT

Most of the concepts and ideas behind new products come from the firms research and
development division. The efforts and inputs of this division are crucial since they can make or break a
prospective product. Firms with weak research and development division s usually come up with
products that do not do well in the market. Sometimes, despite the efforts of this division, not all new
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products survive, much more make it, in the market. In the Philippines, one example of a product misfire
is powder that supposedly kills germs in fresh fruits and vegetables. Because of the threat product
failure, firms try to find new ways to satisfy the ever-changing needs and wants of consumers. As a
results, marketers are more pressured to come up with innovative promotional campaigns to introduce
a new product successfully in the market, and, in turn, reap steady profits for the firm.

NEW PRODUCT DEVELOPMENT PROCESS

1. Idea Generation and Screening. Most of the time, a team of experts within or outside a company is
tapped to generate new ideas and concepts for a possible product. This team is composed of scientists,
engineers, and executives from the research and development division of the firm or outside experts or
source person in a particular field or industry. In some cases, however, new product ideas can come
from ordinary employees.

2. Concept Development and Testing. At this stages, product concept that passed the initial screening
process will now undergo concept testing by a select group of consumer from different market
segments. This can be accomplished through research on consumer behavior and random product
surveys.

3. Market and Business Planning. Once the product concept has been finalized, the next step for
marketers is to come up with strategies that will effectively introduce the product to its target
consumers. In additional, marketers, at this stage, try to outline the product’s initial market sales
potential, size, profit objectives, cost and profit estimates, and possible competitors.

4. Product Development. After drafting the marketing and business plan, the next step is the
development of a product concept into a product prototype. It may take months or years to develop the
product; but the important thing at this stage is to ensure that the product concept is effectively
translated into an actual product.

5. Test Marketing. Test marketing is the stage when a product is tested in the target market. Albeit
expensive, most marketers opt to undergo this process in order to assess the performance and potential
of the new product among users or consumers.

6. Full Market Launch. After test marketing the new product, the management decides whether to do a
full-blown product launch or, in case of major aberrations, a soft products launch. In most soft launches,
new products are sold at a discounted price. This allows consumers to try the product prior to its full
market launch.
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Product Life Cycle

An important consideration for any product is the logical stages of its lifecycle. A typical product goes
through the following stages:

Introduction – Slow growth period following product launch

Growth – Fast growth phase once the product is established
Maturity – A period of slowdown in sales as the product becomes ubiquitous in the market
Decline – A downward sales as the product is no longer fulfilling a need or there are better options.

PRICE:
 Price is the amount which consumers pay in exchange for a product/service. Marketers
consider various factors before setting a price for a product. One such factor is the marketing
objective of the company. There are some firms which set low prices to maintain the high
demand for a product. When the primary goal of a firm is to maximize profits the potential costs
and profits of a product are analyzed.

IMPORTANCE

1. Price is the Pivot of an Economy:

In the economic system, price is the mechanism for allocating resources and reflecting the degrees of
both risk and competition. In an economy particularly free market economy and to a less extent in
controlled economy, the resources can be allocated and reallocated by the process of price reduction
and price increase.

Price policy is a weapon to realize the goals of planned economy where resources can be allocated as
per planned priorities.

Price is the prime mover of the wheels of the economy namely, production, consumption, distribution
and exchange. As price is a sacrifice of purchasing power, it affects the living standards of the society; it
regulates business profits and, hence, allocates the resources for the optimum output and distribution.
Thus, it acts as powerful agent of sustained economic development.

2. Price regulates demand:

The power of price to produce results in the market place is not equalled by any other component in the
product-mix.
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It is the greatest and the strongest ‘P’ of the four ‘Ps’ of the mix. Marketing manager can regulate
the product demand through this powerful instrument. Price increases or decreases the demand for the
products. To increase the demand, reduce the price and increase the price to reduce the demand.

Price has a special role to play in developing countries where the marginal value of money is high than
those of advanced nations. De-marketing strategy can be easily implemented to meet the rising demand
for goods and services.

As an instrument, it is a big gun and it should be triggered exclusively by those who are familiar with its
possibilities and the dangers involved.

It is so because; the damage done by improper pricing may completely sap the effectiveness of the well-
conceived marketing program. It may defame even a good product and fame well a bad product too.

3. Price is competitive weapon:

Price as a competitive weapon is of paramount importance. Any company whether it is selling high or
medium or low priced merchandise will have to decide as to whether its prices will be above or equal to
or below its competitors. This is a basic policy issue that affects the entire marketing planning process.
Secondly, price does not stand alone as a device for achieving a competitive advantage.
4. Price is the determinant of profitability:
Price of a product or products determines the profitability of a firm, in the final analysis by influencing
the sales revenue. In the firm, price is the basis for generating profits. Price reflects corporate objectives
and policies and it is an important ingredient of marketing mix. Price is often used to off-set the
weaknesses in other elements of the marketing-mix.

5. Price is a decision input:

In the areas of marketing management, countless and crucial decisions are to be made. Comparatively
marketing decisions are more crucial because, they have bearing on the other branches of business and
more difficult as the decision-maker is to shoot the flying game in the changing marketing environment.

Normally, profit or contribution is taken as a base for pay-off conditions. Price can be a better criterion
for arriving at cut-off point because; price is the determinant of profit or contribution.

As pointed earlier, price as an indicator has a special role in the decision-making process in developing
countries because, consumer response to price changes will be more quick and tangible as people have
higher marginal value of money at their disposal. For instance, if it is a decision regarding selecting
product improvement possibilities, select that possibility which gives the highest price as compared to
the cost.

PRICE STRATEGY

1. Pricing at a Premium
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With premium pricing, businesses set costs higher than their competitors. Premium pricing is often
most effective in the early days of a product’s life cycle, and ideal for small businesses that sell unique
goods.

Because customers need to perceive products as being worth the higher price tag, a business must work
hard to create a value perception. Along with creating a high-quality product, owners should ensure
their marketing efforts, the product’s packaging and the store’s décor all combine to support the
premium price.

Examples of products and services using this strategy include Harrods, first class airline services, and
Porsche.

2. Pricing for Market Penetration

Penetration strategies aim to attract buyers by offering lower prices on goods and services. While many
new companies use this technique to draw attention away from their competition, penetration pricing
does tend to result in an initial loss of income for the business.
Over time, however, the increase in awareness can drive profits and help small businesses to stand out
from the crowd. In the long run, after sufficiently penetrating a market, companies often wind up raising
their prices to better reflect the state of their position within the market.

Example : A television satellite company sets a low price to get subscribers then increases the price as
their customer base increases.

3. Economy Pricing
Used by a wide range of businesses including generic food suppliers and discount retailers, economy
pricing aims to attract the most price-conscious of consumers. With this strategy, businesses minimize
the costs associated with marketing and production in order to keep product prices down. As a result,
customers can purchase the products they need without frills.

While economy pricing is incredibly effective for large companies like Wal-Mart and Target, the
technique can be dangerous for small businesses. Because small businesses lack the sales volume of
larger companies, they may struggle to generate a sufficient profit when prices are too low. Still,
selectively tailoring discounts to your most loyal customers can be a great way to guarantee their
patronage for years to come.

4. Price Skimming
Designed to help businesses maximize sales on new products and services, price skimming involves
setting rates high during the introductory phase. The company then lowers prices gradually as
competitor goods appear on the market.

One of the benefits of price skimming is that it allows businesses to maximize profits on early adopters
before dropping prices to attract more price-sensitive consumers. Not only does price skimming help a
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small business recoup its development costs, but it also creates an illusion of quality and exclusivity
when your item is first introduced to the marketplace.

Example : A games console company reduces the price of their console over 5 years, charging a premium
at launch and lowest price near the end of its life cycle.

5. Psychology Pricing
With the economy still limping back to full health, price remains a major concern for American
consumers. Psychology pricing refers to techniques that marketers use to encourage customers to
respond on emotional levels rather than logical ones.

For example, setting the price of a watch at $199 is proven to attract more consumers than setting it at
$200, even though the true difference here is quite small. One explanation for this trend is that
consumers tend to put more attention on the first number on a price tag than the last. The goal of
psychology pricing is to increase demand by creating an illusion of enhanced value for the consumer.

Example :

The seller will charge 99p instead £1 or $199 instead of $200. The reason why this methods work, is
because buyers will still say they purchased their product under £200 pounds or dollars, even thought it
was a pound or dollar away. My favourite pricing strategy.

6. Bundle Pricing
With bundle pricing, small businesses sell multiple products for a lower rate than consumers would face
if they purchased each item individually. Not only is bundling goods an effective way of moving unsold
items that are taking up space in your facility, but it can also increase the value perception in the eyes of
your customers, since you’re essentially giving them something for free.

Bundle pricing is more effective for companies that sell complimentary products. For example, a
restaurant can take advantage of bundle pricing by including dessert with every entrée sold on a
particular day of the week. Small businesses should keep in mind that the profits they earn on the
higher-value items must make up for the losses they take on the lower-value product.

Example :

This strategy is very popular with supermarkets who often offer BOGOF strategies.

BUY ONE GET ONE FREE.

7. Competition Pricing
Setting a price in comparison with competitors. In reality a firm has three options and these are to price
lower, price the same or price higher than competitors.
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Example

Some firms offer a price matching service to match what their competitors are offering. Others will go
further and refund back to the customer more money than the difference between their price and the
competitor's price.

8. Product Line Pricing

Pricing different products within the same product range at different price points.

Example :

An example would be a DVD manufacturer offering different DVD recorders with different features at
different prices e.g. A HD and non HD version.. The greater the features and the benefit obtained the
greater the consumer will pay. This form of price discrimination assists the company in maximising
turnover and profits.
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PLACE

Placement

The third P in the marketing mix is placement. Marketers sometimes call it the product’s channel of
distribution. Marketers see to it that a product reaches its target customer. In that account, all products
intented for different types of consumers need various channels of distribution.

A marketing channel has degrees of intensity. Intensity refers to the extent and number of
intermediaries used by marketers for a product to reach its target customers. A channel is intensive
when a product goes through many intermediaries. It’s is selective however, when a few
intermediaries are utilized. And in rare cases, when only intermediary is needed, a channel is considered
exclusive.
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Marketing channels are important because they expedite product placement distribution. While the
use intermediariesentails additional costs, the case of access to products by consumers, in return,
guarantees better profits for the firm or company

The term, place refers to “placing products and services within the reach of the consumer”. It is
bringing the goods within purchasing distance. It is bringing the goods within purchasing distance. It is
making them conveniently accessible to the consumers. Companies can adeaquately address this
concern by developing a so-called distribution marketing structure.

Selecting Distribution Strategies

A company may need to use different strategies for different types of products. Three main strategies
that can be used are:

1. Intensive Distribution
Intensive distribution is widespread placement in as many places as possible, often at low prices. Large
businesses often market on a nationwide level with this method. Convenience products – ones that
consumers buy regularly and spend little time shopping for, like chewing gum – do better with
intensive (widespread) distribution.

This strategy may be used to distribute lower prices products that may be impulse purchases.
Items are stocked at a large number of outlets and may include things such as mints, gum or
candy as well as basic supplies and necessities.

2. Selective Distribution
Selective distribution narrows distribution to a few businesses. Often, upscale products are sold through
retailers that only sell high quality products. With this option, it may be easier to establish relationships
with customers Products that people shop around for sell better with selective distribution.

A product may be sold at a selective number or outlets. These may include items such as
computers or household appliances that are costly but need to be somewhat widely available to
allow a consumer to compare.

3. Exclusive Distribution

Exclusive distribution restricts distribution to a single reseller. You may become the sole supplier to a
reseller who, in turn, might sell only your product. You may be able to promote your product as
prestigious with this method, though you might sacrifice sales volume. Specialty products tend to
perform better with exclusive distribution.
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A higher priced item may be sold at a single outlet. This is exclusive distribution. Cars may be an
example of this type of strategy.

A TYPICAL MARKET CHANNEL

 The vertical marketing system (VMS) is the improved version of the conventional
marketing system. In VMS, the firm (producer), wholesalers and retailers all work
together as one cohesive group to develop, promote, and distribute the products. In this
system, as in most cases, the firm owns and controls the wholesaler s and retailers.
 The horizontal marketing system (HMS) on the other hand , involves two or more
working firms working together to take advantage of a marketing opportunity. Movie
producers who do tie up with TV networks to produce and distribute a film is an
example of horizontal marketing system.

PROMOTION:

Promotion refers to the series of steps taken by firms to introduce a product to its target
consumers. There are different types of promotional techniques that firms can use to market a
product to the consumer

MAJOR TYPES OF PROMOTION

1. Advertising. It is defined as any paid form of non-personal and mediated presentation of a
product/service. Television. radio,brochures,billboard, and newspaper are the platforms most
commonly utilized by marketers to air, print, or post their advertisements.
2. Public Relations. This refer to the attempts of firms to build a good brand image and establish a
smooth and harmonious relationship with consumers. For most firms, the best way to foster good
public relations is to participate in various advocacy campaign and philanthropic activities.
3. Personal Selling. This method utilizes the firms large sales force with the intention of making a
direct sale to target consumers. To accomplish this, the sales force employs the following marketing
programs : trade shows, sales presentations, and product demonstrations.
4. Sales Promotion. It involves the use of incentives on a short- term basis to boost product sales. Ex:
of sales promotion s techniques are discount, premiums and coupons.
5. Direct Marketing. It involves direct communication with consumers with the aim of establishing
good rapport with them. Ex: of direct marketing techniques include e-mails, text messages, catalogs
or online display ads, customer service counters, and hotlines.

Developing an effective promotional campaign requires several steps.

1. Marketers should identify the target audience or would-be receivers of the campaign message.
The target audience may include the following
-Prospective customers
-influencers,
-loyal customers
-purchasing agents
-end user
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2. Marketers should lay down their marketing communication objectives. For this purpose, it is
important that marketers ask themselves these questions.
-are the consumers already aware of the product/service.
-how extensive is their knowledge about it?
-what are their current product preferences
All these questions in the final analysis help marketers in achieving their ultimate goal throughout
the whole process.
3. After specifying the target audience communications objectives it is time for the marketers to
create the campaign message. A convincing message to arouse and hold the target audience ‘
s attention
The contents of the message must appeal to the rational thin king of the target audience.
-stating the benefits of a particular product is a sure way of stimulating the intellect of
consumers/appeal to the emotion . Most of these advertisement have messages predicated on
themes such a approval, acceptance , and self worth.
-Marketers is also to consider the format of a message .Delicate or sensitive topics that need to
be communicated well to avoid offending people or groups with different beliefs and
sensibilities

People – All companies are reliant on the people who run them from front line Sales staff to the
Managing Director. Having the right people is essential because they are as much a part of your business
offering as the products/services you are offering.

The company’s employees are important in marketing because they are the ones who deliver
the service. It is important to hire and train the right people to deliver superior service to the clients,
whether they run a support desk, customer service, copywriters, programmers etc.

When a business finds people who genuinely believe in the products or services that the
particular business creates, it’s is highly likely that the employees will perform the best they can.

Additionally, they’ll be more open to honest feedback about the business and input their own
thoughts and passions which can scale and grow the business.

This is a secret, “internal” competitive advantage a business can have over other competitors
which can inherently affect a business’s position in the marketplace. The reputation of your brand
rests in the hands of your staff. They must be appropriately trained, well-motivated and have the right
attitude.

All employees who have contact with customers should be well-suited to the role. In the age of
social media, every employee can potentially reach a mass audience. Formulate a policy for online
interaction and make sure everyone stays on-message.

Likewise, happy customers are excellent advocates for your business. Curate good opinion on
review sites. Superior after sales support and advice adds value to your offering, and can give you a
competitive edge. These services will probably become more important than price for many customers
over time.

People represent the business

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 The image they present can be important

 First contact often human – what is the lasting image they provide to the
customer?
 Extent of training and knowledge of the product / service concerned
 Mission statement – how relevant?
 Do staff represent the desired culture of the business?

Process: The process of giving a service, and the behaviour of those who deliver and crucial to
customer satisfaction. Issues such as waiting times, the information given to customers and the
helpfulness of staff are all vital to keep customers happy.

 Customers are not interested in the detail of how your business runs. What matters to them is that the
system works.

 Do customers have to wait? Are they kept informed? Are your people helpful? Is your service
efficiently carried out? Do your people interact in a manner appropriate to your service?

Process in one the “P’s” that is frequently overlooked. A customer trying to reach your company by
phone is a vital source of income and returning value; but so often customers have to stay on hold for
several minutes listening to a recorded message before they are able to get through. Many of these
customers will hang up, go elsewhere and tell their friends not to use your company. - just because of
the poor process that is in place. Even if they do get through, they will go away with a negative
impression of the company

Physical Evidence – Almost all services include some physical elements even if the bulk of what the
consumer is paying for is intangible. For example a hair salon would provide their client with a
completed hairdo and an insurance company would give their customers some form of printed material.
Even if the material is not physically printed they are still receiving a “physical product” by this
definition.

In the service industries, there should be physical evidence that the service was delivered.
Additionally, physical evidence pertains also to how a business and its products are perceived in the
marketplace.

To the customer or potential customer, the physical environment has to feel right and be in line with
their expectations. There was a time when all bank branch staff were hidden away behind glass
screens, dealing with customers through a small opening. This was inconsistent with the open and
approachable stance that the banks were trying to develop. So slowly the banks started to move some
staff outside into the public area so they could better interact with customers. The physical
environment then became consistent with other elements of the marketing mix.
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But of course we can also experience the physical environment in the digital world. It would be
inconsistent to experience a slow and unresponsive website for a company who are promoting a fast
and efficient response to customer enquiries. Poor use of language in digital communications from an
educational institution could also be classed as inconsistent physical evidence. Inadequate packaging of
a product from what we perceive to be a high quality online retailer might also be seen as an
inconsistency in the physical evidence.

There may be two kinds of physical evidence:

 Peripheral evidence
 Essential evidence

Peripheral evidence is possessed as a part of the service purchase. It has however little or no
independent value. For example, movie ticket, bank cheque book, confirmation receipt for hotel
reservation.
A cheque book has no value if you have no money in the bank. Peripheral evidence adds to the value of
essential evidence. They are relatively small and trivial but undoubtedly have an impact on the
consumer perception about the quality of service.
Essential evidence represents a prominent element of the service facility. These are technical
facilities without which the service delivery is not possible.
This can not be given to consumers, except may be on a temporary basis. Essential evidence can’t be
possessed by the customer; the building, its size and design, interior Layout and decor, logo of the
business are elements of the essential evidence.