Marketing for Hospitality and Tourism Kotler, Bowen and Makens Internal Marketing Chapter 10 Learning Objectives 1. Understand why internal marketing is an important part of a marketing program. 2. Explain what a service culture is and why it is important to have a company where everyone is focused on serving the customer. 3. Describe the three-step process involved in implementing an internal marketing program. 4. Explain why the management of nonroutine transactions can create the image of being an excellent service provider. Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Internal Marketing Internal Marketing involves marketing to the firm’s internal customers, its employees The Moment of Truth occurs when employees and customers have contact Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Internal Marketing Process Establishment of a Service Culture Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens Development of a Marketing Approach to HR Dissemination of Marketing Information to Employees © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Establishment of a Service Culture Service Culture Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens Service Marketing Program Organizational Culture © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved New Organizational Structure Customers Line Employees Supervisors Department Heads General Managers Corporate Focus of Organizational Team Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Nonroutine Transactions • Strong culture prepares employees to handle nonroutine transactions – Service culture provides employees with the proper: • • • • Attitude Knowledge Communication Skills Authority • Nonroutine transactions are unique – The ability to handle nonroutine transactions separates excellent hospitality companies from mediocre ones Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Marketing Approach to HR Create Jobs that Attract Good People Improve the Hiring Process Promote Teamwork Emphasize the Importance of Initial Training Train Continuously Manage Emotional Labor Implement a Reward and Recognition System Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Terms Cast members A term used for Internal marketing Marketing by a employees. It implies that employees are part of a team that is performing for their guests. Cross-training Training employees service firm to train effectively and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. to do two or more jobs within the organization. Moment of truth Occurs when an Emotional labor The necessary employee and a customer have contact. involvement of the service provider’s emotions in the delivery of the service. Organizational culture The Empowerment When a firm empowers employees, it moves the authority and responsibility to make decisions to the line employees from the supervisor. pattern of shared values and beliefs that gives members of an organization meaning and provides them with the rules for behavior in that organization. Service culture A system of values and beliefs in an organization that reinforces the idea that providing the customer with quality service is the principal concern of the business. Marketing for Hospitality and Tourism, 6e Kotler, Bowen and Makens © 2014 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved