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Internal Marketing “Employee morale is affected by how much we know about the company’s plans.” 98 percent of employees agree.

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Presentation on theme: "Internal Marketing “Employee morale is affected by how much we know about the company’s plans.” 98 percent of employees agree."— Presentation transcript:

1 Internal Marketing “Employee morale is affected by how much we know about the company’s plans.” 98 percent of employees agree.

2 Key questions regarding internal marketing zWhere does it fit within an organization’s marketing plans, or within its strategic plans? zWho should do it -- marketing, human resources, public relations? zWhat can organizations learn from each other? zWhat does the diverse literature say?

3 Definitions: zSelling the firm to its employees (Grönroos, 1981) zThe process of attracting, developing, motivating, and retaining qualified employees through job-products that satisfy their needs (Berry & Parasuraman 1991) zBuilding customer orientation among employees by training and motivating both customer contact and support staff to work as a team (Kotler & Armstrong 1991) zA process by which employee satisfaction is leveraged to positively impact the bottom line. Satisfied employees strengthen relationships among all critical stakeholders. (Williams, Business & Economic Review, 1997)

4 Definition -- (Joseph 1996) zThe application of marketing, human resources management, and allied theories, techniques, and principles to motivate, mobilize, co-opt and manage employees at all levels of the organization to continuously improve the way they serve external customers and each other. Effective internal marketing responds to employee needs as it advances the organization’s mission and goals.

5 zCustomer- and employee-focused zIt demands an integrative approach zInternal customers -- the idea that organizational departments serve each other zIt encompasses all employees

6 zCarlzon’s ‘moments of truth’ shaped by employees by the way they: ylook yact ytalk yinteract with each other yincluding facial expression, demeanor and personality

7 Good internal marketing programs depend on: zRecruiting the right people zTraining them zMotivating them zCommunicating with them zCo-opting them (getting them to buy into the organization and its plans)

8 Changing Workforce zEmployees viewed as assets, not costs zPeople will have 4-6 careers in lifetime zMore than half of women with babies are working zMore women are starting and running their own businesses

9 Trends of Internal Communications zFew companies develop a strategy zFailure in over 80 percent of cases involving announced change zBiggest symptom of failure - lots of inaccurate, negative rumors zSecond symptom - learning about change from press

10 Trends of Internal Communications zEmployees are insulted when a less ‘rich’ channel is used zManagement does not adapt message to different groups zEmployees react negatively to use of buzzwords zGreat differences between literal meaning, intention and effect of overly positive messages

11 Time Spent by PR Department on: 35% 10% 25% 30% Media Government Investors Employees

12 Companies not doing Enough zEmployees don’t believe what management says. zAre not sufficiently informed. zChange not communicated well. zManagement does a bad job of explaining reasons behind decisions. zCommunication is not timely.

13 Management Excuses zDon’t have time zHaven’t gotten information self zFear reactions, leaks, uproar zWon’t give away power zHaven’t gotten message of what’s expected of them zAre not evaluated on their communication abilities zGet no rewards for communicating zDon’t see how it is useful zUnder-evaluate employee’s information needs

14 Employees Want Top Management to: zInform them ahead of time zCare about how they really feel zGive their supervisors enough authority to get job done zMake a strong commitment to serve the customer zHave the ability to solve major organization problems zRun a socially responsible organization zProvide new products and services to meet competition zPlace more emphasis on quality than quantity

15 Manager’s Communication Obligations zCarry information from top management zExplain zListen zGet feedback from employees zTake information from ‘down’ to ‘up’ zActive role in spreading information zSell ideas zMotivate, inspire and encourage personal development z Profile and market units z Speak at meetings z Negotiate z Give feedback, criticism and praise z Speak personally with staff z Solve conflicts z Set demands z Explain and defend unpopular decisions z Carry out periodic evaluations of employees

16 A Good Communication Climate zInstructive zInformative zAdvising zContributive zParticipatory

17 Communications Strategy Nature of Change Organizational Dynamics Employee Differences Organizational Culture Organizational Climate Channel Message Time Strategy L. R. Smeltzer, An Analysis for Announcing Organization-Wide Change, Group & Organizational Studies, Vol. 16, No. 1 March 1991.

18 L E E E E E Goal Power Structure Communication Structure Tannæs, 1992

19 Focus zWhat is size and nature of work force? zWhat does the work force think of organization? zHow satisfied are employees? zWhat employee communications exist? zHow effective are communications tools? zAre there special employee relationship programs?

20 Communication Objectives zIncrease employees’ knowledge zEnhance favorable attitudes toward employer zGet more adoption by employees of behavior desired by management zMake employees spokespersons for organization in community zReceive more employee feedback

21 Media Capacity & Communication Characteristics Medium Media 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 Sociology of Organizations, Vol.. 5, 1987.

22 Prescriptions for Managers zFace-to-face: non-routine and difficult communications zMemos: routine, simple communications zDiscussion & Meetings: make presence felt zRich media: implementing strategy zMultiple media: critical issues and need to get message heard zEvaluate appropriate technology

23 Media zBulletin boards zDisplays and exhibits zTelephone hotlines or news lines zInserts in paychecks zInternal television zSpeakers bureaus - employees to community groups z Films z Video cassettes z Meetings z Teleconferences z Audio-visual presentations z Booklets, pamphlets, brochures

24 Evaluation zCommunication, Retention, Acceptance of Messages zCo-orientational Evaluations zHuman Relations Audits zCommunication Satisfaction zInternational Communications Association Audit - extensive use of network analysis and interviews

25 How Leading Companies Communicate zChief executive as communication champion zMatch between words and actions zCommitment to 2- way communication zEmphasis on face-to- face z Share responsibility z Bad news/good news ratio z Knowing customers, clients, audiences z Employee communication strategy

26 A business marketer can develop 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 Age’s Business Marketing, July 1998.

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