Marketing To Employees
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Marketing To Employees






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Marketing To Employees Marketing To Employees Presentation Transcript

  • Marketing to Employees Internal Marketing in A Service Organization By Arun Kottolli
  • Nature of Services Marketing
    • Services are consumed as it is produced
    • Services marketing has limited influence on customers prior to purchase than goods
      • Need to experience intangible service to know it
      • Experience influences Post-Sale marketing
      • Experience influences word-of-mouth communication
    • Services marketers can create brand awareness & induce trial
    • Experience of benefits builds brand preference and brand value
  • Nature of Services Marketing
    • Services marketing is also done by service providing personnel
    • All these influences customer satisfaction and customer retention
    • Delivering excellent quality service is the key!!
    • Thus quality of employees influence quality of service – Effectiveness of services marketing
    • Service firms must market itself to employees first
  • An Integrative Framework Turning Marketing into A Line Function Identifying the right services Doing the service Right the first time Doing the service Right every time Managing & Exceeding Customer Expectations Marketing to New customers Managing Experience Branding the firm Marketing to Existing Customers Marketing to Employees Maximize market Potential Delivering Quality Service Building a Marketing Organization
  • What is Internal Marketing?
    • Internal Marketing is attracting, developing, motivating and retaining qualified employees through job-products that satisfy their needs
    • Internal Marketing is the philosophy of treating employees as customers
    • Internal Marketing is wooing employees to accept & believe the firm’s service offering
  • Goal of Internal Marketing
    • Ultimate goal is to encourage effective marketing behavior in all employees
    • Build an organization of marketers who are willing and able to create true customers for the firm
    • “ A knowledgeable, satisfied employee is our best marketing agent…We treat our employees the way we want them to treat our guests” -- Hyatt Hotels
  • Essentials of Internal Marketing Attracting, Developing, Motivating & Retaining Qualified Employees Compete for Talent Offer a Vision Prepare People to Perform Stress on Team Play Know thy Customer Leverage The Freedom Factor Measure & Reward
  • Compete For Talent
    • Hiring the best possible people to perform the service is a key factor for success
    • Hiring is not just a HR function
    • Service sector is the largest employer
      • There will always a shortage of skilled resource
    • To hire the best – think like a marketer:
      • Aim High, Use multiple methods, Cast a wider net, & segment the market
      • Don’t lower the standards
      • Hire from different population segments
      • Use Flexible terms – timings & benefits
  • Offer A Vision
    • Attracting & retaining the best talent requires a clear vision to be presented to employees
    • Paycheck alone will not keep a person emotionally involved
    • Vision should state:
      • How their work fits in the organization
      • How they contribute to the firm
      • The cause for serving customers
    • Great companies present a vision which invokes a passion in employees
    • Use every opportunity to present the vision
  • Prepare People to Perform
    • Training is needed to develop and motivate employees to perform superior service
    • Employees may have the technical skills but may not have enough knowledge
      • They know “ how” but not “ Why”
    • Training is an ongoing continuous process
      • Not just a one time deal
      • Involve middle managers as teachers
    • Build a high-learning company
      • Institutionalize learning
      • Evaluate & fine tune learning process
      • Use Role Models
      • Use a mix of learning approaches
  • Stress on Team Play
    • Service work is demanding, often frustrating, sometimes demoralizing
      • Banks, Airlines – repetitive jobs, rude customers
    • Team work is an antidote for burnout
      • Improves morale, increases peer support
      • Motivates employees
      • Allows Job rotation
    • Team work requires attitude shift from management & Employees
      • Team Leadership
      • Shared Goals
      • Team Performance measurement
      • Team rewards in addition to individual rewards
  • Leverage the Freedom Factor
    • Strict By-the-book management inhibits
      • Employee’s ability to provide service
      • Undermines confidence in Management
      • Stifles creativity and personal growth
      • Chases out the most talented employees
    • Freedom to provide “by-the-customer” service makes employees innovate and ensure full customer satisfaction
    • Empowerment gives people the best avenue to succeed & ownership of the success
    • Empowerment must be done within a set of flexible rules
    • Establish Authority & responsibility
  • Measure & Reward
    • Employees need to know how performance is measured and rewarded
      • Define Output & Behavioral measures that contributes most to the company’s vision & strategy
      • Performance measurement should be Transparent & well understood
    • Reward must be linked to company’s vision & Strategy
    • Distinguish between competence pay and performance pay
    • Use multiple reward methods to encourage positive behavior
    • Reward teams & also individuals
  • Know Thy Customer
    • Know your customer’s to tailor jobs of employees
    • Employees are the internal customers
    • Get feedback from frontline employees and customers
      • Value their inputs & participation
    • Be prepared to act on the feedback report
    • Are your employees willing to become your customers?
    • Would employees recommend the company to others?
    • Use market research to include employees
  • Manager’s Action List
    • Do we compete as hard for talented employees as we do for Customers?
    • Does our company stand for something worthwhile?
    • Do we prepare our employees to perform excellently?
    • Do we stress on team play?
    • Do we allow our employees the freedom to come through for our customers?
    • Do we measure & reward that which is important?
    • Do we listen to our employees?
  • Summary
    • A service company is as good as its people
    • Internal marketing is necessary to attract and retain the best talent
    • Companies that practice best internal marketing will:
      • Compete aggressively for market share
      • Serve customers better
      • Win with quality service
      • Attract other talented people as potential employees