1.
Chapter 6
INTERNAL MARKETING

2.
Contents
• Role of front line employees in services marketing
• Service Triad-Concept of internal, integrated marketing and
interactive marketing
• Service Encounter
• Service Recovery

3.
Front Line Employees
• Frontline customer service representatives operate in a variety of
capacities. They may work in core operations serving customers, or at
a customer service desk in a commercial environment; answer
help lines or customer service telephone lines; or they may respond
to customer inquiries via email or live chat.
• They are responsible for understanding customer needs and for
interpreting customer requirements in real time. By focusing on the
critical role of service employees and by developing strategies that
lead to effective customer-oriented service, organizations can begin
to close the service performance gap.

4.
Role of Front Line Employees
• Facilitators
• They possess important insights about customers and the firm
• Help in coordinating and delivering based on requirement of both
• Innovators
• Generate ideas
• New ways of doing business (product process)
• Also because they
• Co-creators
• Design and redesign a process
• Re-integrate links between resource and re-build service value propositions

5.
Services Marketing Triad
• Internal Marketing
• Integrated Marketing
• Interactive Marketing

6.
Internal Marketing
• Its is the promotion of a company's vision, goals, culture, and mission statement within
the organization.
• The idea behind internal marketing is to earn employees' enthusiasm by creating an
emotional connection to the brand.
• Internal marketing, when done right, ensures that your employees are providing high-
quality service to your customers and helping the company grow and prosper.
• One of the key component of internal marketing is have an effective internal
communication in place.

7.
The Services Encounter Triangle
Internal
Marketing
Interactive Marketing
External
Marketing
Company
(Management)
Customers
Employees
“enabling the
promise”
“delivering the promise”
“setting the
promise”
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Prepared by: Dr. Arati Prabhu
Interactive Marketing

8.
Interactive Marketing
• Interactive marketing is a one-to-one marketing practice that centers on individual
customer and prospects' actions. Interactive marketing involves marketing initiatives that
are triggered by customers' behaviors and preferences; for this reason, it is a major shift
from traditional campaign-based marketing efforts
• It is the marketing strategy that uses two-way communication channels to allow
consumers to connect with a company directly.
• It relies on having a means of open communication with customers through using various
social media channels

9.
Integrated Marketing
• Marketing communications uses different marketing channels and tools in combination:
Marketing communication channels focus on any way a business communicates a
message to its desired market, or the market in general.
• An integrated approach to marketing communications ensures that all channels are
aligned and following the same strategy, overarching business objectives and company
values.
• Aka IMC – Integrated Marketing Communications, it involves co-ordinating the firm’s
promotional mix (communication elements – advertising, sales promotions, personal
selling, public relations (PR) & direct/online marketing) to communicate a crystal clear,
consistent brand message.

10.
Service Encounter
• “A period of time during which a consumer directly interacts with a
service”. (Shostack 1985)
• “Moments of Truth” – typically many occur during a multi – stage
service process. Potentially critical in determining customer
satisfaction and loyalty.
• SE – opportunity to
• Build trust
• Reinforce quality
• Build brand image
• Increase loyalty

11.
Service Encounter Cascade

12.
Critical Incidents
• “Specific interactions between customers and service firm employees
that are especially satisfying or especially dissatisfying” (Booms and
Tetreault)
• Can only be defined by the customer
• Go to be come the heart of the service benefit

13.
When (negative) critical incident occurs
Dissatisfaction
occurs
Action
No Action
Public Action
Private Action
Seek redress directly from
the firm
Take legal action
Complaint to business, private,
or governmental agencies
Stop buying the product or
boycott the seller
Warn friends about the product
and /or seller
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Prepared by: Dr. Arati Prabhu

14.
What to do… when negative critical incident occurs
Recovery
- Employee response to service
delivery system failure
Adaptability
- Employee response to customer
Needs and Requests
Coping
- Employee response to Problem
Customers
Spontaneity
- Unprompted and unsolicited
employee actions and attitudes

15.
• The average business only hears from 4% of their
customers who are dissatisfied with their products or
services. Of the 96% who do not bother to complain, 25% of
them have serious problems.
• The 4% complainers are more likely to stay with the supplier
than are the 96% non-complainers.
Customer Feedback an WOM
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Prepared by: Dr. Arati Prabhu

16.
• About 60% of the complainers would stay as customers if
their problems was resolved and 95% would stay if the
problem was resolved quickly.
• A dissatisfied customer will tell between 10 and 20 other
people about their problem.
A customer who has had a problem resolved by a company
will tell about 5 people about their situation.
Customer Feedback an WOM
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Prepared by: Dr. Arati Prabhu

17.
• Case-by-case addresses each customer’s complaint
individually but could lead to perception of unfairness.
• Systematic response uses a protocol to handle
complaints but needs prior identification of critical failure
points and continuous updating.
• Early intervention attempts to fix problem before the
customer is affected.
• Substitute service allows rival firm to provide service but
could lead to loss of customer.
Approaches to service recovery
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Prepared by: Dr. Arati Prabhu