Internal Marketing & Employee's role

• Internal marketing is marketing to the firm's internal customers, the employees.
• Jan Carlzon says if you are not serving the customer, you had better be serving someone who is.
• Danny Meyer says hospitality is present when something happens for you and absent when something happens to you.

Employees

• Employees are the heart and soul of any hospitality organization.
• The guidance employees receive from the organization enables them to carry out incredible moments of truth.

Moment of Truth

• The hospitality industry is unique because employees are part of the product.
• A moment of truth occurs when an employee and a customer have contact.
• Bad service encounters receive more attention than good ones
• Marketing must be embraced by all employees.

Role of Internal Marketing

• Used to gain acceptance of a new system, such as new working practices.
• All employees are potential company ambassadors. -Developing the cooperation and commitment needed to make external marketing strategies work.

Employee & Customer Satisfaction

• Employee satisfaction effects customer satisfaction, visa versa.
• A two-way effect.
• Employee satisfaction creates customer satisfaction.
• Customer dissatisfaction reduces employee satisfaction.

Internal Marketing Process

• Establishment of a service culture
• Development of a marketing approach to human resource management
• Dissemination of marketing information to employees
• Implementation of a reward and recognition system.

Establishment of a Service Culture

• A service culture is a system of values and beliefs in an organization that reinforces the idea that providing quality service is the principal concern of the business.
• Organizational culture is the pattern of shared values and beliefs that gives members of an organization meaning, providing them with the rules for behavior in the organization.

The Importance of a Strong Service Culture

• A strong service culture helps the organization to direct behaviour.
• Culture is important to service organizations because every customer and each experience is different.
• Gives employees a sense of purpose.
• They know what the company is trying to achieve and how they are helping the company to achieve that goal.
• Culture serves as the glue that holds an organization together.
• Employees are empowered with a certain degree of autonomy and responsibility for decision-making regarding their jobs.
• Prepares Employees to Handle Non routine Transactions
• None Routine Transactions are a guest transaction that is unique and usually experienced for the first time by employees.

Conventional organizational structure vs Service-oriented organizational structure

• Conventional structure has Corporate management at the top.
• Service-oriented organizational structure has Customers at the top.

Marketing Approach to Human Resource Management

• Aims to attract good people.
• Not all employees are the same.
• Some employees seek money to supplement their income.
• Others seek works that will be their main source of income.
• Marketers can use marketing research techniques to segment the employees market.
• Hire for attitude and train for skill. If the company hires the right people, they will be team players.
• If one employee makes an error in companies that practice internal marketing, other employees try to cover it before the customer recognizes

Importance of Initial Training

• To be effective, employees must receive information regularly about their company.
• Continuous training should be provided.
• Cross-training teaches employees to do 2 or more jobs within the organization
• Shows the importance of each department and how they work together to provide customer service

Managing Emotional Labor

• Emotional labor is the necessary involvement of the service provider's emotions in the delivery of the service.
• The display of emotions can strongly influence the customer's perception of the service.
• Emotional Dissonance Inconsistencies may occur between the emotion an employee feels and the one they project.
• To manage emotional labor, managers must hire employees who can cope with the stress caused by dealing customers.
• Monitor overtime and double shifts.
• Encourage work breaks and support from fellow workers and managers.
• Managers can sometimes cause stress. Like, Sending the employee back out to work with customers, Yelling at an employee or Giving long hours to employees.

Implementation of a Reward and Recognition System

• Excellent way to give employees feedback.
• Can be based on achieving sales objectives and customer satisfaction.

Dissemination of Marketing Information to Employees

• Customer-contact employees need to be aware of upcoming events, ad campaigns, new promotions, etc.
• Employees should hear about promotions and new products from management, not advertisements meant for external customers.
• Employees should receive information on new products changes and marketing campaigns and changes in service in delivery process.
• Important to remember is employee involvement in uniform selection.

Final Thoughts

• Internal marketing is essential for business success.
• When employees feel valued, they provide better service, leading to higher customer satisfaction and loyalty.