INTERNAL MARKETING Chapter 10 Kotler, Bowen, Makens and Baloglu Marketing for Hospitality and Tourism

Learning Objectives 1. Understand why internal marketing is an important part of a marketing program. 2. Explain what a service culture is and why it is important to have a company where everyone is focused on serving the customer. 3. Describe the three-step process involved in implementing an internal marketing program. 4. Explain why the management of nonroutine transactions can create the image of being an excellent service provider.

Internal Marketing Internal Marketing involves marketing to the firm’s internal customers, its employees The Moment of Truth occurs when employees and customers have contact

Internal Marketing Process Establishment of a Service Culture Development of a Marketing Approach to HR Dissemination of Marketing Information to Employees

Establishment of a Service Culture Service Culture Organizational Culture Service Marketing Program

New Organizational Structure Customers Line Employees Supervisors Department Heads General Managers Corporate Focus of Organizational Team

Nonroutine Transactions  Strong culture prepares employees to handle nonroutine transactions  Service culture provides employees with the proper: Attitude Knowledge Communication Skills Authority  Nonroutine transactions are unique  The ability to handle nonroutine transactions separates excellent hospitality companies from mediocre ones

Marketing Approach to HR Create Jobs that Attract Good People Improve the Hiring Process Promote Teamwork Emphasize the Importance of Initial Training Train Continuously Manage Emotional Labor Implement a Reward and Recognition System

Key Terms Cast members a term used for employees. It implies that employees are part of a team that is performing for their guests. Cross-training training employees to do two or more jobs within the organization. Emotional labor the necessary involvement of the service provider’s emotions in the delivery of the service. Empowerment when a firm empowers employees, it moves the authority and responsibility to make decisions to the line employees from the supervisor. Internal marketing involves marketing to the firm’s internal customers, its employees. Moment of truth occurs when an employee and a customer have contact. Organizational culture the pattern of shared values and beliefs that gives members of an organization meaning and provides them with the rules for behavior in that organization. Service culture a system of values and beliefs in an organization that reinforces the idea that providing the customer with quality service is the principal concern of the business.