Internal Marketing as a Motivational Tool of Employees in Croatian Companies
•Download as PPTX, PDF•
3 likes•1,618 views
Internal marketing is defined by several experts as communication processes within a company to motivate employees and achieve long term goals. It involves marketing activities targeted at internal users like employees. The study found Croatian companies have low familiarity and poorly implement internal marketing, while experts see it as an effective tool. Management does not fully recognize its importance. Suggestions are made to develop internal marketing systematically through research, strategy, planning, implementation and evaluation. Resources should be invested to create motivated employees who choose to further business goals.
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (17)
Similar to Internal Marketing as a Motivational Tool of Employees in Croatian Companies
Similar to Internal Marketing as a Motivational Tool of Employees in Croatian Companies (20)
Recently uploaded
Recently uploaded (20)
Internal Marketing as a Motivational Tool of Employees in Croatian Companies
- 1. INTERNAL MARKETING AS A MOTIVATION TOOL OF EMPLOYEES IN CROATIAN COMPANIES
- 2. We are... We’ll talk... You’ll hear... Introduction
- 3. Motivation ...receive full support... ...interest and purpose in working... „It is not posible to motivate an individual, rather, a situation in which individuals respond to be motivated because they choose to can be created.” (Rabey, 2001) Goal of internal marketing Employee motivation = Sucess of external marketing Existing research
- 4. Internal Marketing “ Communication or a series of processes for collaboration among company’s functions carried out so that the organization may achieve their mid- to long term goals.” - Kimura (2011, pp. 77-79) “Marketing to employees of an organization to ensure that they are effectively carrying out desired programs and policies.“ - American Marketing Association “Internal marketing implies all marketing activites targeted to internal users (employees) and organisation in general, with a goal of motivating employees and improving organisational climate within the organisation.” - Sommer (2005, p. 7) “Strategy for developing connections between employees throughout the internal organisation .“ - Ballantyne (2000, p. 44) “ Internal marketing focuses on implementing philosophy and practice of marketing on the internal market in order to hire and retain best individuals and to motivate all employees to go work in the best possible way.” - Došen (2000, p. 19)
- 5. Internal Marketing “The internal market of employees is best motivated for service mindedness and customer oriented performance by an active, marketing-like approach, where a variety of activites are used internally in an active, marketing-like and coordinated way“. - Gronroos (1994, p. 13)
- 6. Internal Marketing Planning similar to external marketing - Adapted for internal market -...Market research, segmentation, goals, 4Ps... ...E-mail marketing, personal contact, internal papers, events... Internal market is under more control than external Internal marketing is a basically a dialogue Two Major Problems Management Human factor
- 7. Study 11 marketing experts Medium and large companies Average 10 years experience
- 8. Study Usage and familiarity • International • Often • Deep analysis • Croatia • No clear plans • Low familiarity • Poorly implemented Management • No unique way • Money • Directors • Understanding • Resources • Exceptions • Small number • Invest and deliver • Management is aware Organization • No single opinion • MKT must be included • Synergy of disciplines • Department • Individual • MKT • HR Tools • Familiar to experts • Similar to external MKT • Modern technology • Personal contact • Favourite • Prize games • Events • Newsletters • Magazines • Social networks
- 9. Study Management not recognizing --> slowing implementation Important and efficient tool for better business results Internal marketing as a discipline will grow
- 10. Suggestions for developing IM Research • Recognize needs • Continuosly • Focus groups and polls Strategy and model • Set strategic goals • Other dept. help in creation • Budgeting Planning • Setting up projects • Precise and adapted to target • Selecting tools Implementation • One leader coordinates • Cooperation on all levels • Take care of details Evaluation • Data for next cycle • Deviations from goals • Revision if needed Values Every individual counts Transparency Customer-oriented
- 11. Conclusion A situation in which individuals respond to be motivated because they choose to can be created Experts find it to be an effective tool for improving employee motivation and completing business goals Croatian companies do not implement internal marketing Resources should be invested in internal marketing Implementation requires a systematic approach
- 12. Conclusion
Editor's Notes
- Predstaviti seReći da će prezentacija trajati oko 11-13 minutaIstaknuti benefite, ljudi će saznati o:MotivacijiPojmu internog marketingaIstraživanju provedenom među frajerima marketingaOsobne ideje za razvoj
- We chose this subject as we received full support to write it. We are interested in it and we had the opportunity to really do it. This is one of the definitions of motivation which supports internal marketing. In other words, a person cannot be motivated to do something. Rather, a situation in which individuals respond to be motivated because they choose can be created. This is the goal of internal marketing.To get back to us, we were satisfied with the job and very very dedicated, so we created a paper which we feel is very good. What happened here is that we were motivated, more dedicated, completed the task, and ultimately, had a quality result.In terms of marketing, there are findings that employee motivation actually leads to success of the external marketing. You can find more on the approaches which led to understanding of motivation in the paper, but let’s tackle another question - what is this “internal marketing?”
- Introduced in 1980s, there is still no single unified concept of what exactly is internal marketing, what it does, how and by who.These are just some of the definitions by scholars from around the world. Let’s start from the first one…. No, I’m just kidding.I won’t quote these definitions today. You can read them in our paper, if you are interested. I’ll simply point out some keywords.
- I won’t quote these definitions today. You can read them in our paper, if you are interested. I’ll quote just one definition we found to be the best:“The internal market of employees is best motivated for service mindedness and customer oriented performance by an active, marketing-like approach, where a variety of activites are used internally in an active, marketinglike and coorinated way“.I would like to point our that almost every definition states that it is a combination of marketing and motivational theories for the ultimate goal of achieving business goals. Also, the influence of this “internal marketing” is most visible in service companies as the human factor is very important in providing services. In other words, motivated employees make satisfied customers. Enthusiastic employees make spending customers. Scholarly, this is called “market or customer-oriented employees”. Research shows that this leads to positive ROI.
- Now, Mark from marketing here wants to implement his knowledge. To start with, it would be good for him to have a team with, for example, Keith from HR, Peter from PR department, or even guys from TQM, client relations etc. as all of them can bring something to the table.In planning, they would use techniques, models, politics and tools similar to external marketing activities, but adapted for the internal one. Market research, segmentation, goal setting, 4P’s of marketing, all of these can be used, but adapted. For example, Mark can use e-mail marketing, personal contact, internal papers, events and other marketing wonders to achieve goals.Also, internal marketing is good for his nerves because internal market under his control more than the external market. And a little angel here tells him to create internal marketing on a relational level, or as a dialogue of company with their employees.Unfortunately, there are two major problems in implementation for Mark and his team: Management and humans (or the human factor). Management problem has a simple solution - the whole company should practice it, from the top, to the bottom. Mark might have a problem with other people in his company as most won’t accept the changes due to a number of reasons. Luckily for him, we listed them in our paper. I advise you to take a peek and find them in there.However, Mark is still not ready. He might want to know what do some of the top-of-the class marketing managers in Croatian companies think about internal marketing and how to deal with the major problems. Luckily for him and you, we’ll talk about that right now.
- Iznošenjeistraživanja (3 min)In 2013, we did in-depth face to face interviews with eleven marketing experts working in medium and large companies, all of them in different businesses such as telecoms, media companies and insurance companies. These nice people are among the highest positioned employees and have an average of 10 years of work experience, with one expert working in marketing for 17 years. We found them as experts in the field of marketing and ideal for the study of internal marketing. Following are some of the most important findings from this research:
- USAGE AND FAMILIARITYInternal marketing is often used, especially in companies owned by international corporations. The concept is used in Croatian companies, but usually without detailed strategies and plans with clear goals. The experts find that, in general, familiarity with the concept is low and it is often poorly implemented, if it is implemented at all. They find that companies are not even aware that they are conducting internal marketing activities, even though they are working with the tools for it. International corporations, however, deeply analyse and implement strategies in detail. Public companies use internal marketing to a lesser extent.MANAGEMENTConcerning management, experts believe that there is no unique way to motivate employees, but money is considered to be an irreplaceable motivator. They find that there is internal marketing in almost every company, but almost all conclude that it does not deliver as boards of directors do not understand the importance and effects of internal marketing, therefore, not allocating enough resources for it to be fully effective. Of course, there are some exceptions, but to a lesser extent. These companies invest and deliver, and their management is aware of it. The conclusion that it is crucial to present the importance and effects of internal marketing to the board of directors. Only then will internal marketing be included in the business strategy of the company with a dedicated budget.ORGANIZATIONExperts found that there are individual departments for internal marketing, marketing department that only implement strategies and companies in which HR undertakes internal marketing actions at a small scale. Most suggest that connecting HR and marketing departments is important for internal marketing as it provides a multidisciplinary point of view and synergy of departments. Some find that HR should create the strategy, but not implement it without marketing knowledge. If possible, experts suggest creating a special department which would deal exclusively with internal marketing. The important conclusion is that experts have different opinions and is therefore difficult to create a single model of internal marketing, but all experts find that marketing departments must be included for maximum efficency of internal marketing.TOOLSAll experts are well familiarized with many internal marketing tools, as they are similar to external marketing ones. Experts suggest that it's useful to use modern technology as it is fast and efficient, but element of human contact must be mandatory in planning. Tools they find most interesting to achieve goals are prize games, events, newsletters, magazines and social networks.CONCLUSIONExperts find that the lack of recognition of internal marketing by higher management is slowing down the implementation. However, all experts find it to be a very important and efficient tool in achieving better business results. This suggests that this discipline will continue to grow and senior management will be educated to recognize its importance in the future.Luckily for us, our friendly expert marketers were nice enough to provide us with the suggestions on how to develop internal marketing in Croatia. Their insight and the insight we gained from our research is the basis for the next chapter.
- USAGE AND FAMILIARITYInternal marketing is often used, especially in companies owned by international corporations. The concept is used in Croatian companies, but usually without detailed strategies and plans with clear goals. The experts find that, in general, familiarity with the concept is low and it is often poorly implemented, if it is implemented at all. They find that companies are not even aware that they are conducting internal marketing activities, even though they are working with the tools for it. International corporations, however, deeply analyse and implement strategies in detail. Public companies use internal marketing to a lesser extent.MANAGEMENTConcerning management, experts believe that there is no unique way to motivate employees, but money is considered to be an irreplaceable motivator. They find that there is internal marketing in almost every company, but almost all conclude that it does not deliver as boards of directors do not understand the importance and effects of internal marketing, therefore, not allocating enough resources for it to be fully effective. Of course, there are some exceptions, but to a lesser extent. These companies invest and deliver, and their management is aware of it. The conclusion that it is crucial to present the importance and effects of internal marketing to the board of directors. Only then will internal marketing be included in the business strategy of the company with a dedicated budget.ORGANIZATIONExperts found that there are individual departments for internal marketing, marketing department that only implement strategies and companies in which HR undertakes internal marketing actions at a small scale. Most suggest that connecting HR and marketing departments is important for internal marketing as it provides a multidisciplinary point of view and synergy of departments. Some find that HR should create the strategy, but not implement it without marketing knowledge. If possible, experts suggest creating a special department which would deal exclusively with internal marketing. The important conclusion is that experts have different opinions and is therefore difficult to create a single model of internal marketing, but all experts find that marketing departments must be included for maximum efficency of internal marketing.TOOLSAll experts are well familiarized with many internal marketing tools, as they are similar to external marketing ones. Experts suggest that it's useful to use modern technology as it is fast and efficient, but element of human contact must be mandatory in planning. Tools they find most interesting to achieve goals are prize games, events, newsletters, magazines and social networks.CONCLUSIONExperts find that the lack of recognition of internal marketing by higher management is slowing down the implementation. However, all experts find it to be a very important and efficient tool in achieving better business results. This suggests that this discipline will continue to grow and senior management will be educated to recognize its importance in the future.Luckily for us, our friendly expert marketers were nice enough to provide us with the suggestions on how to develop internal marketing in Croatia. Their insight and the insight we gained from our research is the basis for the next chapter.
- Remember Mark from marketing? Let’s help him get the internal marketing in his company up and running!We suggest that Croatian companies implement a systematic approach to internal marketing in order to increase employee motivation and achieve competitive advantage. Like every marketing campaign is specific for every client, every internal marketing campaign should be specifically tailored to every client.Given that, every company should very carefully plan and implement internal marketing, much like any external marketing campaign, but with profoundly different goals. It should follow five plus one simple steps.ValuesTo kick off, understanding that internal marketing suports achievement of all strategic goals of the company and including it into the business strategy is crucial for its efective implementation and efficiency. Senior management MUST be educated on its benefits and tools to be aware of its full potential. It is crucial that internal marketing follows business goals and is in their service, taking into account the target audience. Some of the values that the organization should accept and encourage are:Every individual countsTransparency in communicationOrientation on the customerResearchThe research of internal market should be similar to external market research, with a goal of recognizing employee needs. research of the internal market should be made continuously so that the experts who are creating the strategy can spot and define problems in the internal environment, as well as plan activities to remove or reduce defined problems. Focus groups and polls are the simplest way to conduct research.Strategy and modelAfter the research, senior management should include the previously stated values as strategic goals and include the data from the research in creating a comprehensie strategy. In this stage, it is most important that strategic goals are well set, and that MKT, HR, comm and other departments help with the ceation.Concerning budgeting, it should also be agreed on early on. One suggestion is to have a fixed budget as internal marketing actions are cheaper and easier to predict.One of the two models of implementation should be selected: dedicated team or combination of departmentsPlanningStrategy is set, so are the goals. Now the team works to precisely plan how to achieve them. We reccomend several long term projects (eg. educations, development of communications) accompanied with a few smaller project per month (eg. teambuilding, prize game), depending on the work load. It is specially suggested that smaller projects are connected with long term ones to achieve goals most efficiently.The plans should be very precise and adapted to the target audiences using different tools (not one communication for the whole company). The selected tools should communicate focused and clear. If possible, messages should be communicated personally. Other tools that should be used are intranet, prize games, events, newsletters, magazines and social networks. Whatever the tools selected, they should encourage dialogue so that the creation of new knowledge can be induced. Structuring the processes will help in achieving plans. Creativity in using tools is crucial to their success, therefore, their preparation can be outsourced to creative or marketing agencies.ImplementationWhen the plan is set, it’s time to implement. One leader should coordinate all activites and define what his team does and at what deadlines. Implementation requires cooperation in all levels in the organizational structure, especially departments which cooperate (board of directors, management, employees). With good implementation that takes care of details, previously devised plans will yield results. Kardum (2009, pp. 116-117) finds that before implementation it is necessary to:· Ensure support of management· Motivate, involve, inform all employee levels· Define responsibilites for implementation· Organize system for receiving feedback during implementation· Organize system in which every employee get feedback on the efficiency of implemented activitiesEvaluationEvaluation is important for collecting data for the next cycle of planning, as well as presenting results to manaement. Evaluation must define and find sources of deviations from goals, as well as define activities to achieve goals. It should be done as often as possible by internal marketing team members. The best course of action is to collect data for every goal, which is why a dedicated internal marketing team would prove useful.With the end of the evaluation, new cycle of internal marketing begins with a research that will influence revising the strategy and creation of new plans of internal marketing. If values of the organization are distrupted, process can begin from the beginning to revise the values, too.And with that, we come to our conclusion
- To provide concrete and useful advices for implementing internal marketing in Croatian companies, a theoretical background of internal marketing and motivation was conducted, combined with a research on the state of internal marketing in Croatian companies by marketing experts from Croatian companies.We found that most Croatian companies do not implement internal marketing. Experts believe that some resources should be transferred to internal marketing so that effects on motivation can be made. This will, in turn, create better business results. Given that, marketing experts actually do find internal marketing as an effective tool for improving employee motivation.The concluion of this paper is that internal marketing is an interesting marketing discipline not generally used by Croatian companies. Implementation requires a systematic approach, but an affordable one, which can have a positive effect on motivation of the internal market and, in turn, business results.Thank you.
- To provide concrete and useful advices for implementing internal marketing in Croatian companies, a theoretical background of internal marketing and motivation was conducted, combined with a research on the state of internal marketing in Croatian companies by marketing experts from Croatian companies.We found that most Croatian companies do not implement internal marketing. Experts believe that some resources should be transferred to internal marketing so that effects on motivation can be made. This will, in turn, create better business results. Given that, marketing experts actually do find internal marketing as an effective tool for improving employee motivation.The concluion of this paper is that internal marketing is an interesting marketing discipline not generally used by Croatian companies. Implementation requires a systematic approach, but an affordable one, which can have a positive effect on motivation of the internal market and, in turn, business results.Thank you.