Marketing to Employees

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Marketing to Employees

• Internal Marketing in
• A Service Organization

By Arun Kottolli
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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

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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

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An Integrative Framework
Marketing to New customers
Maximize market Potential
Marketing to Existing Customers
Marketing to Employees
Managing Experience Branding the firm
Building a Marketing Organization
Turning Marketing into A Line Function
Managing Exceeding Customer Expectations
Doing the service Right the first time
Doing the service Right every time
Delivering Quality Service
Identifying the right services
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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 firms service offering

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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 agentWe treat our employees the way we
  want them to treat our guests -- Hyatt
  Hotels

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Essentials of Internal Marketing
Compete for Talent
Know thy Customer
Leverage The Freedom Factor
Offer a Vision
Attracting, Developing,
Motivating Retaining Qualified Employees
Measure Reward
Prepare People to Perform
Stress on Team Play
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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
• Dont lower the standards
• Hire from different population segments
• Use Flexible terms timings benefits

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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

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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

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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

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Leverage the Freedom Factor

• Strict By-the-book management inhibits
• Employees 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

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Measure Reward

• Employees need to know how performance is
  measured and rewarded
• Define Output Behavioral measures that
  contributes most to the companys vision
  strategy
• Performance measurement should be Transparent
  well understood
• Reward must be linked to companys vision
  Strategy
• Distinguish between competence pay and
  performance pay
• Use multiple reward methods to encourage positive
  behavior
• Reward teams also individuals

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Know Thy Customer

• Know your customers 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

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Managers 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?

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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