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    Internal Marketing

    Employee morale is affected by how much weknow about the companys plans.

    98 percent of employees agree.

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    Key questions regarding

    internal marketing

    Where does it fit within an organizationsmarketing plans, or within its strategic plans?

    Who should do it -- marketing, humanresources, public relations?

    What can organizations learn from each other?

    What does the diverse literature say?

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    Definitions:

    Selling the firm to its employees (Grnroos, 1981)

    The process of attracting, developing, motivating, andretaining qualified employees through job-products that

    satisfy their needs (Berry & Parasuraman 1991) Building customer orientation among employees by

    training and motivating both customer contact andsupport staff to work as a team (Kotler & Armstrong 1991)

    A process by which employee satisfaction is leveraged topositively impact the bottom line. Satisfied employeesstrengthen relationships among all critical stakeholders.(Williams, Business & Economic Review, 1997)

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    Definition -- (Joseph 1996)

    The application of marketing, human resourcesmanagement, and allied theories, techniques,and principles to motivate, mobilize, co-opt andmanage employees at all levels of theorganization to continuously improve the waythey serve external customers and each other.

    Effective internal marketing responds toemployee needs as it advances theorganizations mission and goals.

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    Customer- and employee-focused

    It demands an integrative approach

    Internal customers -- the idea thatorganizational departments serve eachother

    It encompasses all employees

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    Carlzons moments of truth shaped byemployees by the way they:

    lookact

    talk

    interact with each otherincluding facial expression, demeanor and

    personality

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    Good internal marketing

    programs depend on:

    Recruiting the right people

    Training them

    Motivating them

    Communicating with them

    Co-opting them (getting them to buy intothe organization and its plans)

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    Changing Workforce

    Employees viewed as assets, not costs

    People will have 4-6 careers in lifetime

    More than half of women with babies areworking

    More women are starting and running

    their own businesses

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    Trends of Internal

    Communications

    Few companies develop a strategy

    Failure in over 80 percent of cases involvingannounced change

    Biggest symptom of failure - lots ofinaccurate, negative rumors

    Second symptom - learning about change

    from press

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    Trends of Internal

    Communications

    Employees are insulted when a less richchannel is used

    Management does not adapt message todifferent groups

    Employees react negatively to use ofbuzzwords

    Great differences between literal meaning,intention and effect of overly positivemessages

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    Time Spent by PR Department

    on:

    35%

    10%

    25%

    30%

    Media

    Government

    Investors

    Employees

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    Companies not doing

    Enough

    Employees dont believe whatmanagement says.

    Are not sufficiently informed.Change not communicated well.

    Management does a bad job of explaining

    reasons behind decisions.

    Communication is not timely.

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    Management Excuses

    Dont have time

    Havent gotten information self

    Fear reactions, leaks, uproar

    Wont give away powerHavent gotten message of whats expected of

    them

    Are not evaluated on their communication

    abilities Get no rewards for communicating

    Dont see how it is useful

    Under-evaluate employees information needs

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    Employees Want Top

    Management to:

    Inform them ahead of time

    Care about how they really feel

    Give their supervisors enough authority to get job done

    Make a strong commitment to serve the customer

    Have the ability to solve majororganization problems Run a socially responsible organization

    Provide new products and services to meet competition Place more emphasis on quality than quantity

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    Managers Communication

    Obligations

    Carry information from topmanagement

    Explain

    Listen

    Get feedback fromemployees

    Take information from downto up

    Active role in spreading

    information Sell ideas

    Motivate, inspire andencourage personaldevelopment

    Profile and market units

    Speak at meetings

    Negotiate

    Give feedback, criticism and

    praise Speak personally with staff

    Solve conflicts

    Set demands

    Explain and defendunpopular decisions

    Carry out periodicevaluations of employees

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    A Good Communication

    Climate

    Instructive

    InformativeAdvising

    Contributive

    Participatory

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    Communications Strategy

    Nature of

    Change

    Organizational

    DynamicsEmployee DifferencesOrganizational Culture

    Organizational Climate

    Time

    Strategy

    L. R. Smeltzer, An Analysis

    for Announcing Organization-Wide

    Change, Group & Organizational Studies,

    Vol. 16, No. 1 March 1991.

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    L

    E E E E E

    Goal

    Power Structure Communication

    Structure

    Tanns, 1992

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    Focus

    What is size and nature of work force?

    What does the work force think oforganization?

    How satisfied are employees?

    What employee communications exist?

    How effective are communicationstools?

    Are there special employee relationshipprograms?

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    Communication Objectives

    Increase employees knowledge

    Enhance favorable attitudes toward

    employerGet more adoption by employees of

    behavior desired by management

    Make employees spokespersons fororganization in community

    Receive more employee feedback

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    Media Capacity & Communication

    Characteristics

    MediumMedia Richness

    Capacity

    Media Characteristics

    Feedback Cues/Channels Intimacy Language

    Face-to-face

    Telephone

    Written, addressed

    (letter, memo)

    Written,

    unaddressed

    High

    Low

    Immediate Multiple Personal Natural

    visual, audio

    Fast Audio Personal Natural

    Slow Limited Personal Natural/

    visual Numeric

    Very slow Limited Impersonal Natural/

    visual Numeric

    From R. Daft and G. Huber, How Organizations Learn:

    A communications framework, Research in the Sociologyof Organizations, Vol.. 5, 1987.

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    Prescriptions for Managers

    Face-to-face: non-routine and difficultcommunications

    Memos: routine, simple communicationsDiscussion & Meetings: make presence felt

    Rich media: implementing strategy

    Multiple media: critical issues and need to getmessage heard

    Evaluate appropriate technology

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    Media

    Bulletin boards

    Displays andexhibits

    Telephone hotlinesor news lines

    Inserts in paychecks

    Internal televisionSpeakers bureaus -

    employees tocommunity groups

    Films

    Video cassettes

    Meetings

    Teleconferences

    Audio-visualpresentations

    Booklets, pamphlets,brochures

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    Evaluation

    Communication, Retention, Acceptanceof Messages

    Co-orientational EvaluationsHuman Relations Audits

    Communication Satisfaction

    International CommunicationsAssociation Audit - extensive use ofnetwork analysis and interviews

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    A business marketer candevelop a really hot system

    to market their product, but

    if they have not taken time

    to build in an employee

    communications plan, the

    marketing effort is dead in

    the water.

    Gegenheimer, C. L., Include employees in

    marketing,Advertising Ages Business

    Marketing, July 1998.