1. Implementation processes and internal marketing: Making it happen
Lecture 11

2. A route-map for market-led strategic change
Part I
Customer value
imperatives
Part II
Developing a value-based
marketing strategy
Part III
Processes for managing
strategic transformation
The strategic pathway
Change strategy
Market sensing
and learning
strategy
The Customer
is always
right-handed
Strategic
gaps
Strategic
market choices
and targets
Strategic
thinking and
thinking
strategically
New marketing
meets
old marketing
Organization
and processes
for change
Customer value
strategy and
positioning
Implementation
process and
internal
marketing
Value-based
marketing
strategy
Strategic
relationships
and networks

3. Agenda - 1
Why do we need to make an issue out of strategy implementation?
Implementation versus strategy
So, what is the thing about implementation?
Implementation denial
So, why doesn’t it work?
Building implementation strategies

4. Agenda - 2 Strategic internal marketing
Where does that leave us with strategy implementation?

5. Why do we need to make an issue out of strategy implementation?
Many company change initiatives fail
Implementation capabilities
The need for internal marketing
getting employees on our side
getting managers on our side
getting collaborators on our side
changing culture

6. How groups can block effective change in a company
Energy
Low
High
The
“yes … but”s
or malicious
obedience
The
ideal
High
Understanding
The
dinosaurs
The
dangerous
enthusiasts
Low

7. Implementation versus strategy
Traditional approaches: organization, resources action lists, control systems
Creates a dichotomy between strategy formulation and implementation
Need better ways of integrating strategy and implementation

8. So, what is the thing about implementation?
Implementation failures associated with
separation of planning from management
hopeless optimism
implementation recognized too late
denial of implementation problems
implementation bolted-on at the end
fixation
implementation is a black-box

9. Implementation denial
Failure to recognize the implementation problem
Need to recognize problems and prepare for change

10. Recognising the implementation problem and preparing for change
Perception that there is a problem
High
Low
Ready
to go
Blissful
ignorance
High
Willingness
to change
Low
Worried stayers/
frightened
rabbits
Closed
minds

11. So, why doesn’t it work? Strategy versus implementation skills
diagnosing implementation problems means comparing strategy (appropriate or inappropriate) with execution skills good or bad)

12. Diagnosing the implementation problem
Strategy
Appropriate
Inappropriate
Success
Roulette
Good
Execution
skills
Trouble
Failure
Bad

13. So, why doesn’t it work? Organizational stretch
what is the relationship between the fit of the strategy with company capabilities, systems and structures and the strategy itself (new or old)?

14. Matching strategy to company capabilities
Fit of strategy with company
capabilities, systems, structures
Good
Poor
Synergistic
strategies
Stretch
strategies
New
Market
strategy
Conventional
strategies
Obsolete
strategies
Old

15. So, why doesn’t it work?
Testing out the strategy versus blaming the salesperson
Lip-service to strategy caused by
management by assumption
structural contradictions
empty promises marketing
bunny marketing
Counter-implementation emerges

16. Testing market strategies
Test the strategy
Results
Reason
Is this really a coherent
and complete strategy? No No
implementation
This strategy does
not tell us what to do
Yes
Lip-service - we may
agree with the strategy
but we cannot put it
into effect
Is this strategy capable of
being implemented by this
company at this time? No No
implementation
Yes
We do not accept this
strategy - let’s see what
counter-implementation
can do!
Have we communicated the
strategy - adapted it, won
support for it? No No
implementation
Yes
Implementation
(maybe)

17. So, why doesn’t it work? What about execution skills and competences?
interacting skills
allocating skills
monitoring skills
organizing skills

18. Building implementation strategies
Screen strategies for implementation problems
Isolate and evaluate priority implementation problems
Evaluate key players in implementation
Develop implementation strategies

19. Screening strategies for implementation problems
1. Screen strategies for implementation problems early
2. Isolate and evaluate implementation problems in detail
3. Identify and evaluate key players
4. Develop credible, costed implementation strategies
- or reject the strategy

20. Internal and external marketing
Strategy
Plan
Internal
marketing
programme
Product
Price
Communications
Distribution
External
marketing
programme
Product
Price
Communications
Distribution
Targeted at key
groups in the
company, alliance
partner companies,
and other influencers
Targeted at key
customers, segments
and niches, and other
external influencers

21. Role of Internal Marketing
The managerial actions necessary to make all members of the organization understand & accept their role in implementation
internal products-marketing strategies
internal prices-changes that must be undertaken to implement the marketing strategy
internal distribution-how the strategies are communicated internally (training)
internal promotion-persuasive communications

22. Models of internal marketing
Source: Ahmed and Rafiq (2002) Internal Marketing Butterworth Heinemann Chapter 2

23. Berry’s model of internal marketing
Employee
involvement
and
participation
Treating
employees as
customers
Attitudes
towards
service
mindedness
Jobs as
products
Perceived
service
quality
Employee
satisfaction
Customer
satisfaction
Competitive
advantage
Application
of marketing
techniques
internally
Attraction and
retention of
customer
conscious
employees

24. Gronroos’ model of internal marketing
Pre-launch
information
regarding
marketing
campaign
Employees
realise the
importance
of their role
Interactive
marketing
Increased
sales
Supportive
recruitment
practices
Motivated
customer
conscious
employees
Perceived
service
quality
Customer
satisfaction
Increase
profitability
Goal
interaction
Supportive
management
Training
Participate
management
Employees’
satisfaction
Employee
discretion

25. Rafiq and Ahmed meta-model of internal marketing
Pre-launch information
regarding marketing
campaigns
Employees realise the
importance of
their role
Supportive
recruitment
practices
Training
Participative
management
Employee
discretion
Word of mouth
promotion
Increased
loyalty
Motivated
employees
Service
quality
strategy
Supportive
senior
management
Customer
conscious/
customer
orientated
employees
Perceived
service
quality
Good
interaction
Customer
satisfaction
Increased
profitability
Jobs as
products
Sales
minded
employees
Increased sales
due to interactive
marketing
Application
of marketing
techniques
internally
Employees’
satisfaction
Attraction and retention
of customer conscious
employees

26. A framework for internal marketing of services
Inter-functional
Co-ordination
and Integration
Employee
motivation
Marketing-like
approach
Job
satisfaction
Customer
orientation
Empowerment
Service
quality
Customer satisfaction

27. The tools of internal marketing
Source: Ahmed and Rafig

28. Caveats Employees as customers
products may be unwanted (e.g. new methods of working)
employees must accept the ‘product’ or be forced into acceptance under the threat of disciplinary action or dismissal

29. Caveats problem with idea of customer sovereignty
make impossible demands on organisation and its resources
In this approach employees do not know that they are customers even though they are treated as such

30. INTERNAL MARKETING MIX
Number of elements under the control of management are combined and integrated in order to produce the required response from the target market.
Use extended seven P’s of service marketing
Explicitly recognises inter-functional interdependence and the need for an integrated effort for effective service (or product) delivery
Major aim of an internal marketing programme

31. Levels of internal marketing
Surface
Structural
Processual
Organizational
levels
Critical
questions
What are the plans,
systems and
procedures in
this business?
Product:
Plans and strategies
Price:
Opportunities
given up
Communications:
Information,
market research
Distribution:
Reports,
presentations
Who runs things
here?
Product:
New strategic direction
Price:
Loss of control,
status, initiative
Communications:
Sponsorship,
agenda-setting
Distribution:
Policies,
participation
Who has influence
here - sets the agenda,
owns key processes,
is an “expert”?
Product:
individual’s job, status, role
Price:
Adjustment to
change, new culture
Communications:
Persuasion, image,
influence, choice of criteria
Distribution:
informal communications
network,
social interaction
Internal
marketing
levels

32. Strategic internal marketing
Programme
Product
Price
Communications
Distribution
Contents
The strategy and the plan,
including the values, attitudes
and behaviours needed to
make them work
What we are asking internal
customers to “pay” – other
projects abandoned, personal
and psychological adjustment
to change
Media and messages to inform
and persuade
Physical and social venues for
delivering the product and
communications
Examples
For example, the written plan,
the new company initiative
For example, stepping out of
comfort zones for new types
of operations
For example, reports, plans,
presentations, videos,
roadshows
For example, meetings, work-groups,
training sessions and workshops,
informal meetings, social occasions

33. INTERNAL MARKETING MIX
PRODUCT
Strategic level refers to marketing strategies
sell values and attitudes needed to make a plan
Tactical level, e.g.
new performance measures
new ways of handling customers
Refer to services and training courses provided by HRM

34. INTERNAL MARKETING MIX
Fundamental level
job
managers need to concentrate on the benefits of the product rather than its features
employees perspective and benefits they seek
consider:
training needs,
level of responsibility and involvement in decision making,
career development opportunities,
working environment
facilitate hiring retention and motivation of employees
Fundamental level
job
to achieve acceptance of new initiatives, managers need to concentrate on the benefits of the product rather than its features
look at jobs from perspective of the employees and benefits they seek from it
consider training needs, level of responsibility and involvement in decision making, career development opportunities, working environment

35. INTERNAL MARKETING MIX
PRICE
Psychological costs of adopting new methods of working
projects have to be forgone in order to carry out new policies (i.e. opportunity cost) or to transfer pricing and expense allocation between departments
opportunity costs difficult to measure precisely
employees tend to overestimate costs of undertaking new practices and are inclined to resist change
Benefits of adopting new policies need to be clearly explained and any fears allayed by providing employees with appropriate information

36. INTERNAL MARKETING MIX
Internal communication/Promotion
Need co-ordinated use of various techniques
personal selling
face-to-face presentations to individuals and groups more effective than in external marketing
presenter has implicit authority behind what they are saying
face-to-face communication regarded has having far greater impact than other communication methods.

37. INTERNAL MARKETING MIX
Incentives
cash bonuses
awards
recognition programmes
prize draws
competitions
used to overcome short-term resistance or to motivate employees toward consistent behaviour or to increase productivity.

38. INTERNAL MARKETING MIX
Advertising
Companies need to take care of image projecting of themselves and the workforce in external advertising
seen be employees as well as customers
positive when positive customer-orientated attributes portrayed which employees can attempt to emulate
Narrow casting developments
Business TV
Webcasting

39. INTERNAL MARKETING MIX
Place/distribution
Place and channels (or third parties) that are used to get to customers
place is the locations where policies are announced :
meetings
conferences
channels refers to third parties used to deliver training programmes
consultants and training agencies

40. INTERNAL MARKETING MIX
Physical/tangible evidence
Environment in which a product is delivered and where interaction takes place between contact staff and customers, as well as any tangible goods that facilitate delivery or communication if the product
Physical evidence
essential or peripheral (tangible cues that a product has been delivered)
Peripheral evidence e.g. memos, guidelines, training manuals
Essential evidence - environment in which the product is delivered
Special significance of particular policies may be signalled by holding conferences or by sending employees for special training to external agencies such as universities

41. INTERNAL MARKETING MIX
Tangible cues important
Documentation of policies and changes in policies important
if employees are required to perform to certain standards then it is important that these standards are fully documented
Training sessions
tangible manifestation of commitment to standards or particular policies

42. INTERNAL MARKETING MIX
PROCESS
How customer receives a product
customer consciousness may be inculcated into employees by training (or retraining) staff
Can refer to whether new policies are introduced through negotiations with unions or imposed unilaterally
Also refers to delivery method e.g.
circulars, videos or line managers are sued to convey messages

43. INTERNAL MARKETING MIX
PARTICIPANTS
People involved in delivering product and those receiving the product who may influence the customers perceptions
Source of internal marketing programme plays a crucial role in their effectiveness
Inter-departmental or inter-functional communications are likely to be least effective
Most effective means through immediate superior who needs to be motivated by strategic management.
Direct contact between strategic management and contact staff would not by itself be sufficient for the implementation of internal marketing programmes.

44. INTERNAL MARKETING MIX
Market segmentation
process of grouping employees with similar characteristics and needs and wants
include types of benefits that employees want, and roles and functions that they perform
need to be segmented along motivational lines rather than departmental or other lines traditionally used in HRM
Market research
identifying needs and wants of employees
monitoring the impact of HRM policies on employees
long history in HRM in form of employee attitude surveys.

45. Implementing Marketing Activities
Good communication is key
upward communication from the front line
allows management to understand problems & needs of the employees
Employees must understand the implementation timetable
specific activities to be performed, time required, sequence, & who is responsible

46. Implementing an Internal Marketing Approach
Conscientious recruitment, selection & training of employees
Top managers must be completely committed to the marketing strategy & overall plan
Employee compensation must be linked to marketing strategy implementation
Open communication must exist at all levels
Organizational structure, processes & policies must match the marketing strategy

47. Strategic internal marketing
Operational internal marketing
service marketing and quality
brand ambassadors
internal communications
innovation management
corporate positioning
Internal markets instead of external markets

48. Strategic internal marketing
internal market orientation
internal marketing strategy
the structure of SIM

49. Strategic internal marketing
The internal marketing programme
internal market measurement
internal marketing targets
internal marketing evaluation
The hidden face of strategic internal marketing

50. Causes of Improper Implementation
Marketing strategy is inappropriate or unrealistic
Implementation was inappropriate for the strategy or was simply mismanaged
Internal &/or external environment changed significantly between the development of the marketing strategy & its implementation

51. Where does that leave us with strategy implementation?
Execution skills versus process management in strategy implementation
weak implementation
management-driven implementation
implementation-driven strategy
integrated strategy and implementation

52. Process management Execution skills
Execution skills versus process management in marketing strategy implementation
Process management
High
Low
Integrated
strategy and
implementation
Management-
driven
implementation
Strong
Execution
skills
Implementation-
driven
strategy
Weak
implementation
Weak

53. A route-map for market-led strategic change
Part I
Customer value
imperatives
Part II
Developing a value-based
marketing strategy
Part III
Processes for managing
strategic transformation
The strategic pathway
Change strategy
Market sensing
and learning
strategy
The Customer
is always
right-handed
Strategic
gaps
Strategic
market choices
and targets
Strategic
thinking and
thinking
strategically
New marketing
meets
old marketing
Organization
and processes
for change
Customer value
strategy and
positioning
Implementation
process and
internal
marketing
Value-based
marketing
strategy
Strategic
relationships
and networks