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2.  The concept of internal marketing emerged in the 1980s in recognition of the importance of internal stakeholders as a group who should receive marketing attention.  The concept developed a greater impetus in the 1990s and is becoming a major focus of attention for academics and practitioners alike today.  The term ‘internal marketing’ is accredited to Berry (1980)

3.  Employees constitute an internal market in which paid labour is exchanged for designated outputs – the popular view  Employees are a discreet group of customers with whom management interacts, in order that relational exchanges can be maintained/developed with external stakeholders – an extended view (Piercy and Morgan, 1991)  Changing role of employee: -  Brand ambassador  Key interface especially in service organisations – where their actions can have a powerful effect in creating images amongst customers

4. Managers see the main components of internal marketing being within 3 main areas:-  Development, reward and vision....for employees  All three components have communication as a common linkage  Communication with employees and management is undertaken for various reasons: -  DRIP factors: differentiate; reinforce; inform; persuade  Transactional efficiencies: to co-ordinate actions; to promote efficient use of resources; to direct developments  Affiliation needs: to provide identification; to motivate personnel; to promote and co-ordinate activities with non- members

5.  This is about what individual members think and feel about the organisation to which they belong  When their view of org. characteristics matches with their own self-concept then org identity will be strong  Org identity also refers to the degree to which feelings and thoughts about the distinctive characteristics are shared among the members.....thus there are individual and collective aspects to org identity  Brand ambassadors: -  Identify closely; speak openly and positively

6.  Can have positive and negative effect on employees  Can clarify roles, make realistic promises and demonstrate that the org values its employees .....resulting in improved morale and commitment  Negative effects happen when advertising promises are unrealistic and cannot be delivered; messages are not true; roles portrayed are not flattering ....resulting in low morale, distrust and unfavourable attitude that can be seen by non- members

7.  Strategic capability  Past performance  Corporate communications  Credibility of CEO

8.  7 key factors that influence success or failure of internal marketing (Mahnert and Torres, 2007)  Organisation  Information  Management  Communication  Strategy  Staff  Education

9.  Organisational identity comes from organisational culture  Internal marketing shaped by culture as it provides the context within internal marketing practices take place  Org culture emerges from both tangible and intangible factors: -  Tangible: type of business; customers and other stakeholders; geographical position; size, age and facilities  Intangible: assumptions, values and beliefs held and shared

10. 10 Culture Shared philosophies, ideologies, values, beliefs, expectations, and norms Culture Shared philosophies, ideologies, values, beliefs, expectations, and norms

11.  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 11

12. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 12

13. 13 Human systems need some glue, some central theme or themes around which behaviour can coalesce. - Katz and Kahn Human systems need some glue, some central theme or themes around which behaviour can coalesce. - Katz and Kahn Developing a service culture usually means a change in management behaviour and reward systems. Developing a service culture usually means a change in management behaviour and reward systems.

14.  Creating jobs that attract good employees  A hiring process  Teamwork  The importance of initial training  Continuous training  Employee involvement in organisational choices eg uniform selection  Managing emotional labour

15.  Information helps employees to solve guest problems.  Employees should hear about promotions, new products, upcoming event and ad campaigns from management.  Organisations can communicate with their employees by employee newsletter, in- house newsletter, personal communication and technology.

16.  Employees must know how they are doing to perform effectively.  Most reward systems based on meeting cost objectives and achieving sales objectives. A few companies give rewards based on customer satisfaction.

17. Non-routine transactions: outstanding service opportunities. Empowerment

18.  Berry, L.L.(1980), Services marketing is different, Business, May/June, 24-9  Piercy, N and Morgan, R. (1991), Internal marketing: the missing half of the marketing programme, Long Range Planning, 24(April) 82- 93  Dutton, J.E., Dukerich, J.M. And Harquail, C.V. (1994), Organisational images and member identification, Administrative Science Quarterly, 39, 239-63  Mahnert, K.F. and Torres, A.M. (2007), The brand inside: the factors of failure and success in internal branding, Irish Marketing Review,19(1/2), 54-63