Definition

“People” refer to employees, management, and even customers whose attitudes, skills, and interactions determine service quality and brand perception.

Introduction

In services, employees are the brand. They translate company values into visible behavior.
A smile, a tone, or a gesture can elevate or destroy trust. Hence, service marketing extends to internal marketing—treating employees as the first customers.

Explanation
1️⃣ Internal Marketing

Recruit for attitude, train for skill.

Communicate vision and purpose.

Recognize and reward service behaviors.

2️⃣ Interactive Marketing

Occurs during service encounter.

Empower employees to customize solutions within limits.

Emotional labor management to avoid burnout.

3️⃣ Customer as People

Educate and guide customers to cooperate; their behavior affects others’ experience.

Key Takeaways

Employee satisfaction drives customer loyalty.

Training + empowerment = consistent brand experience.

Treat people as assets, not costs.

Real-World Case: Southwest Airlines

Southwest hires for humor and positivity; crew are free to add personality to announcements. High morale translates to friendly service and industry-leading loyalty.
Reference: https://www.southwest.com