Transcript Culture

Chapter 10:
Internal Marketing
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
1
Internal Marketing
The Internal Marketing concept states;
that the internal market of employees is the best
motivated for service-mindedness;
and customer-oriented performance by an active,
marketing-like approach;
where a variety of activities are used internally in an
active, marketing-like and coordinated way.
Source: Christian Gronroos
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
2
Importance of Internal Marketing
• Employees must have a customer service
attitude
• Employees must understand your product
• Employees must be enthused about your
product and your company
• There must be good communication between
employees and management
• Employees must be able to identify and solve
customer problems
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
3
Objectives
• 1. To ensure that employees are
motivated for customer-oriented and
service-minded performance.
• 2. To retain good employees.
• 3. To increase customer satisfaction
• 4. To increase profitability
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
4
Internal Marketing Process
• Establish a service culture
• Development of a marketing approach
to human resource management
• Dissemination of marketing information
to employees
• Implementation of a reward and
recognition program
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
5
Establish a service culture
Culture
Shared philosophies, ideologies, values,
beliefs, expectations, and norms
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
6
Establish a service culture (cont’)
Developing a Customer Oriented
Organization
• 1. Business mission-- managers
supervisors and other -- to accept it.
• 2. Develop service-oriented management
and leadership-- Service Culture-– Management encourages servicemindedness and customer orientation of the
employees
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
7
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
8
Development of a Marketing
Approach to Human Resources
Management
Human systems need some glue, some central theme
or themes around which behavior can coalesce.
- Katz and Kahn
Developing a service culture usually means
a change in management behavior and reward systems.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
9
The Relationship Between the Marketing
Function and the Marketing Department
Source: Gronroos, “Designing a Long Range Marketing Strategy
for Services,“ Long Range Planning (April 1980), P. 40.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
10
Development of a Marketing Approach
to Human Resources Management
(cont’)
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Creating jobs that attract good employees
A hiring process
Teamwork
The importance of initial training
Continuous training
Employee involvement in uniform selection
Managing emotional labor
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
11
Dissemination of Marketing
Information to Employees
• Information helps employees to solve guest
problems.
• Employees should hear about promotions,
new products, upcoming event, and ad
campaigns from management.
• Hospitality organizations can communicate
with their employees by employee newsletter,
in-house newsletter, personal communication,
and technology.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
12
Implementation of a Reward
Recognition System
• Employees must know how they are doing to
perform effectively.
• The results of any service measurement
should communicate with employees
• Most reward systems based on meeting cost
objectives and achieving sales objectives. A
few companies give rewards based on
customer satisfaction.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
13
Non-routine transactions
Non-routine transactions:
outstanding service
opportunities.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
Empowerment
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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• 3. Use marketing techniques to target
employees and develop an attractive
packages for those employees.
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Market Research
"Deep Sensing"
Market Segmentation
Product, Price, Promotion-- Distribution
Market Segmentation
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
15
• 4. Hire customer oriented employees
• 5. Train employees
– Develop a pride in the organization and its
products
– Teach all employees service-oriented
communications and interaction skills.
• 6. Market to employees before
marketing to consumers
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
16