"Customer service shouldn’t just be a department, it should be the entire company."
Tony Hsieh, former CEO of Zappos
The PEOPLE element of the marketing mix refers to the EMPLOYEES and MANAGERS of a business and HOW THEY RELATE and COMMUNICATE WITH CUSTOMERS.
--IMPORTANCE TO SERVICES--
"Why was everyone smiling the first time you took a tour of this school?
"Why your hairdresser always greets you with a friendly greeting?
"Why does the dentist always offers free refreshments?
If you think a bit deeper about this you should realise that these services have some COMMON FEATURES:-
In most cases you CAN'T TOUCH THE PRODUCT ('INTANGIABLE'), so the customer experience depends heavily on the interaction with people.
In the cases where the product is 'served' such as a coffee, again the experience of the SERVING STAFF SHAPES THE EXPERIENCE.
In certain service industries such as wealth management, dentistry, and education the level of TRUST and PERSONAL COMFORTABLENESS with the provider is often the MOST IMPORTANT FACTOR in the customers mind e.g. you are trusting your health, child's education etc..... essentially to a stranger...
In many services you "PAY FIRST-GET THE EXPERIENCE LATER" so you have to be 'talked into" or "Persuaded by the people" to purchase.
--REAL WORLD EXAMPLES--
Apply the common features listed above to the INTERNATIONAL SCHOOL INDUSTRY and explain why 'PEOPLE' is one of the most important elements of its marketing mix.
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