Thursday, 13 May 2021

Internal Marketing (Service Marketing 13.05.2021)

Internal Marketing

Internal marketing is the promotion of a company’s objectives, as well as its products and services, to people within the organization. The purpose of the promotion is increasing employee engagement with the company’s goals and fostering brand advocacy among them.

 

Internal marketing is the promotion of a company’s vision, mission, and culture to its employees with the objective of gaining their support.

 

The companies that are the best at internal marketing treat employees as internal customers who need to be convinced of the company’s mission.

 

The benefits of internal marketing are numerous:

 

Increased employee satisfaction and engagement

Greater brand reach

More trusted marketing

Better customer service

Improved recruiting and employer brand

 

Internal Marketing – Meaning

Internal Marketing (IM) is an on-going process that occurs strictly within a company or organization whereby the functional process aligns, motivates and empowers employees at all management levels to consistently deliver a satisfying customer experience.

(i) IM functioning as a continual internal ‘up-skilling’ process.

(ii) Alignment of the organization’s purpose with employee behaviour.

(iii) Employees internalizing the core values of the organization.

(iv) Motivation, reframing and empowerment of employee attitude.

(v) Inside-out management approach.

(vi) Retaining a positive customer experience throughout the business objectives.

 

Internal Marketing refers to a marketing organisation’s efforts to motivate its employees and generating a trust amongst them for the service firm. The service marketer must ensure that it works in collaboration with its employees for the well-being of the employees and also of the organization. The core to the success of an organization is the confidence that its employees have in the vision and strategy of the marketing activities for the fulfilment of not only the organizational objectives but also of the individual objectives.

 

According to Kotler and Armstrong, “Internal Marketing is orienting the service delivery employees and other supporting service people to work as a team to provide customer satisfaction.”

 

According to Burkitt and Zealley, “The challenge for internal marketing is not only to get the right messages across, but to embed them in such a way that they both change and reinforce employee behaviour.”

 

From the above definitions, it may be inferred that Internal Marketing refers to the process within a service organization to motivate and empower their employees at all the hierarchical positions to consistently offer a quality and a satisfying service experience to the consumers.

The concept of Internal marketing originated from the idea of involving the employees of the service organization in the service encounters to improve the service quality by having a positive customer employee interaction. Internal marketing is not only critical in-service organizations, even in manufacturing organizations, quality service can act as a differentiating factor.

According to Dunne and Barnes, Internal Marketing has two focuses.

Firstly, it should be designed to complement the external marketing through increased customer-employee interaction. The employees should be actively be involved in the development of external marketing communication and promotional strategies. Secondly, it should aim at encouraging the internal staff so that they deliver the critical quality dimensions of Productivity and efficiency.

 

The term Internal marketing was coined by Berry in 1981 and defined it as “viewing employees as internal customers, viewing jobs as internal products that satisfy the needs and wants of these internal customers while addressing the objectives of the organization”. It is felt that unless the internal employees are convinced about the service that they market, they cannot generate sales. Only if the employees are treated as internal customers and their needs and wants are met, they become more committed and enthusiastic about the services they market. Once the employee is satisfied with a service and has had a first-hand experience of the same, he is likely to develop a positive perception about it and offer an immediate feedback to the consumers query.

 

Examples of Internal Marketing

 

1. Educating / Training employees on the company’s goal and values.

2. Encouraging employees

3. Nurturing communication and collaboration among employees

4. Free education in school for teacher’s kids

5. Free service to employee’s and their relatives.

 

Services Marketing Triangle

The service marketing triangle or the Service triangle as it is commonly called, underlines the relationships between the various providers of services, and the customers who consume these services.

As we know, relationships are most important in the services sector. The service triangle outlines all the relationships that exist between the company, the employees and the customers.

                            Organization

 

Employees                                                     Customers

 

a) Internal Marketing (Organisation to Employees) Internal Marketing is the most important dimension of Services marketing. The employees of the organization should be involved in the development of the external marketing and motivated to share the company’s vision so that they enable the delivery of the promises of high service quality to the consumers. Internal Marketing may include internal communication which makes use of a number of channels or mediums to share information.

Another important relationship in the service triangle is that between the company and the employees. Imagine an Airline where the flight attendants themselves are frustrated with the company. You, as a customer, will land up with the poorest services.

Hence, training employees, building value and trust, and empowering employees are some of the ways that the company can make their employees a positive influencing force for the customers.

 

b) External Marketing (Organisation to Customers) External Marketing refers to all the communication and promotions directed to the prospective consumers with the intension to encourage the sale of a service for the satisfaction of their needs and wants.

One of the critical things is to communicate the service strategy to the customers. Most of the E-commerce companies are nowadays employed in convincing the customers to buy from their portal only. For this buying, they are communicating various service advantages which the customers have.

Communication of the service strategy to customers is important to build the trust of customers and hence to convert the customers to be loyal to the company.

 

c) Interactive Marketing (Employees to Customers) This is the last dimension of Services Marketing which highlights the importance of direct interaction of service employees with the potential consumers of the services for the delivery of high-quality service. Services are typically characterized by the interaction between the customers and service providers. This is because the services are produced and consumed at the same time, hence the interaction cannot be avoided between provider and consumer of the services. Marketing of services have increasingly become interactive due to the consumer’s access to technology driven modes, especially the Internet, for being in touch with service provider.

The employee to customer interaction is also known as the “moment of truth” or “critical incidents”. A single customer can become dissatisfied with the way the employee treated him. Or that single customer can buy a lot of material from the same store, because the employee treated him or her like a king or queen.

That’s the difference your employees can create when they interact with customers. There are companies which are high in the customer satisfaction index, just because their employees are well-trained and are empowered to take their own decisions. More importantly, these employees are ingrained with the habit that “Customer is king”.

Once your employees start treating the customer as if they are really king, the whole service triangle gets completed, and you will get the best results from all processes employed.

 

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