The document discusses the importance of establishing a strong service culture for internal marketing programs. It states that a service culture is the first step in developing a customer-oriented organization and influences employees to act in customer-oriented ways. A strong service culture is developed through management commitment, policies, procedures, reward systems, and actions that support customer service. It also involves turning the organizational structure upside down so that customers are at the top and employees at all levels are focused on serving customers.

1. Welcome to
The 1st step of
internal marketing
Establishment of Service Culture
Rina Suprina, M.Hum, M.SiPar
Ivan Prasetya M.Par

2. The Internal
Marketing Process
Establishment of
a Service
Culture

3. An internal marketing program flows
out of a service culture
• a service marketing program is doomed
to failure if its organizational culture
doesn’t support serving customers
Establishment of
a Service
Culture

4. Establishment of
a Service
Culture
An internal marketing program
requires a strong commitment
from management

5. A major barrier to most internal marketing
programs is middle management
• managers have been trained to watch
costs, increase profits
• reward systems are based on achieving
certain cost levels
Establishment of
a Service
Culture

6. Establishment of
a Service
Culture
If management expects employee attitudes
to be positive toward customers,
management must have
a positive attitude toward the customer &
employees.

7. Establishment of
a Service
Culture
Too often, organizations hire trainers to
come in for
a day to get their customer-contact
employees excited about providing high-
quality customer service.

8. Establishment of
a Service
Culture
The effect is usually short lived because the
organizations do little to support the customer-
contact employees
• managers tell receptionists to be helpful &
friendly, yet often the receptionists are
understaffed

9. Establishment of
a Service
Culture
Management must develop a service
culture: a culture that supports customer
service through policies, procedures, reward
systems, and actions.

10. Establishment of
a Service
Culture
An organizational culture is the pattern of
shared values & beliefs giving members of an
organization meaning, providing them with
rules for behavior in the organization.

11. Establishment of
a Service
Culture
A strong culture helps organizations in two
ways
• it directs behavior
• it gives employees a sense of purpose &
makes them feel good about their
company

12. Establishment of
a Service
Culture
Culture serves as glue to hold an organization
together, and when an organization has a
strong culture, the organization & employees
act as one.

13. Establishment of
a Service
Culture
A strong service culture influences
employees to act in customer-oriented ways
and is the first step toward developing a
customer-oriented organization.

14. Establishment of
a Service
Culture
Developing a customer-oriented organization
requires a commitment from management of
both time and financial resources.
• management must be committed to these
changes, they do not result from a
memorandum sent by the CEO

15. Establishment of
a Service
Culture
In some companies, including Hyatt,
McDonald’s, and Hertz, management spends
time working alongside customer-contact
employees serving customers.
• this makes it clear management doesn’t
want to lose touch with operations and cares
about employees & customers

16. Establishment of
a Service
Culture
A service culture & internal marketing program
can’t be developed without the support of
management.

17. Establishment of
a Service
Culture
Organizations cannot expect their employees
to develop a customer-oriented attitude if it is
not visibly supported by company
management.

18. tab
Weak Culture
The Internal Marketing Process

19. Weak Culture
In firms that have weak corporate
cultures, there are few or no common
values and norms.
• employees are often bound by policies
& regulations that may make no sense
from a customer service perspective

20. Weak Culture
Employees become insecure
about making decisions outside
the rules and regulations.

21. Weak Culture
Because there are no established
values, employees do not know how
the company wants them to act.
• they spend time trying to figure out how
to behave

22. Weak Culture
When they come up with a
solution, they must get a
supervisor’s permission before
applying it.

23. Weak Culture
Supervisors, in turn, may feel the
need to pass the responsibility
upward.
• during the decision process, the
guest is kept waiting

24. Weak Culture
In a company with a strong service
culture, employees know what to do,
and they do it.
• customers receive a quick response to
their questions
& quick solutions to their problems

25. Weak Culture
When you come into contact
with an organization that has a
strong service culture, you
recognize it right away.

26. Figure 10-2
Turning the organizational structure upside down.
Turning the
Organizational Structure
Upside Down
The Internal Marketing Process
tab

27. • Conventional organizational structure is
triangular.
• In a hotel the chief
executive officer (CEO)
& chief operating (COO)
officer are at the peak
• The general manager is
next level, followed by department heads,
supervisors, line
employees & customers

28. tab
• The problem with a conventional
organizational structure is that
everyone is working for their boss.
• everyone is concerned with satisfying
people above
them and very little attention is paid to the
customer
Turning the
Organizational
Structure Upside
Down

29. Turning the
Organizational
Structure Upside
Down
• When a company has a service
culture, the organizational chart is
turned upside down.
• customers are now at the top of the
organization,
and corporate management is at the
bottom

30. Turning the
Organizational
Structure Upside
Down
• In this type of organization,
everyone is working to serve the
customer.

31. Turning the
Organizational
Structure Upside
Down
• In a hotel with a conventional
organizational structure, if any
employee makes a mistake, they hope
their supervisor never finds out about it.
• they may even try to cover it up because
they know if
their supervisor finds out, they may be
reprimanded
tab

32. Turning the
Organizational
Structure Upside
Down
• When you turn the organization
upside down, everyone works to
serve the guest.

33. Turning the
Organizational
Structure Upside
Down
• When you have a conventional
organizational structure,
everyone works to please the
boss.