Presentation on theme: "Marketing for Hospitality and Tourism"— Presentation transcript:
1 Marketing for Hospitality and Tourism Kotler, Bowen and MakensInternal MarketingChapter 10
2 Learning ObjectivesUnderstand why internal marketing is an important part of a marketing program.Explain what a service culture is and why it is important to have a company where everyone is focused on serving the customer.Describe the three-step process involved in implementing an internal marketing program.Explain why the management of nonroutine transactions can create the image of being an excellent service provider.
3 Internal MarketingInternal Marketing involves marketing to the firm’s internal customers, its employees The Moment of Truth occurs when employees and customers have contactMarketing in the hospitality and travel industries must be embraced by all employees; it cannot be left to the marketing or sales departmentMarketing must be part of the philosophy of the organization, and the marketing function should be carried out by all line employeesThe skill, motivation, and tools employed by the firm’s representative and the expectations and behavior of the client together create the service delivery processManagers must make sure that employees know their products and believe they are a good valueThe employees must be excited about the company they work for and the products they sellOtherwise, it will be impossible for the guests to become excite
4 Internal Marketing Process Establishment of a Service CultureDevelopment of a Marketing Approach to HRDissemination of Marketing Information to EmployeesInternal marketing ensures that employees at all levels of the organization experience the business and understand its various activities and campaigns in an environment that supports customer consciousnessThe objective of internal marketing is to enable employees to deliver satisfying products to the guestInternal marketing is a process that involves the following steps:Establishment of a service cultureDevelopment of a marketing approach to human resource managementDissemination of marketing information to employees
5 Establishment of a Service Culture Service Marketing ProgramService CultureOrganizational CultureAn internal marketing program flows out of a service cultureA service marketing program is doomed to failure if its organizational culture does not support serving the customerAn internal marketing program requires a strong commitment from managementService cultureA culture that supports customer service through policies, procedures, reward systems, and actionsOrganizational cultureThe pattern of shared values and beliefs that gives members of an organization meaning, providing them with the rules for behavior in the organization
6 New Organizational Structure CustomersLine EmployeesSupervisorsDepartment HeadsGeneralManagersCorporateThe conventional organizational structure is a triangular structureFor example, in a hotel the CEO (chief executive officer) and COO (chief operating officer) are at the peak of the triangleThe general manager is on the next level, followed by department heads, supervisors, line employees, and the customersThe problem with this type of organization is that everyone is concerned with satisfying people above them in the organization, and very little attention is paid to the customerWhen a company has a service culture, the organizational chart is turned upside downThe customers are now at the top of the organization, and corporate management is at the bottom of the structureIn this type of organization, everyone is working to serve the customerFocus ofOrganizational Team
7 Nonroutine Transactions Strong culture prepares employees to handle nonroutine transactionsService culture provides employees with the proper:AttitudeKnowledgeCommunication SkillsAuthorityNonroutine transactions are uniqueThe ability to handle nonroutine transactions separates excellent hospitality companies from mediocre ones
8 Marketing Approach to HR Create Jobs that Attract Good PeopleImprove the Hiring ProcessPromote TeamworkEmphasize the Importance of Initial TrainingTrain ContinuouslyCreating Jobs That Attract Good PeopleManagers must use the principles of marketing to attract and retain employeesThey must research and develop an understanding of their employees’ needs, just as they examine the needs of customersThe Hiring ProcessService organizations need to hire for attitude and train for skillsFinding employees who are good at creating a service experience is a vital goal and major hiring criterion of service organizationsCareful selection can also have a positive effect on the employees that are hired because they feel specialTeamworkIf a company hires the right people, they will be team playersIn companies that practice internal marketing, if one employee makes an error, other employees try to cover it before the guest noticesOrganizations that lack teamwork create an uncomfortable environment for the guestThe Importance of Initial TrainingIf we hire right employees and provide good training, we will be well on the way to having enthusiastic employees create repeat guestsContinuous TrainingTwo principal characteristics have been identified in companies that lead their industries in customer serviceThey emphasize cross-trainingThey insist that everybody share certain training experiencesCompanies must make sure that their employees are familiar with all the products the organization sellsProperly trained employees can deliver quality service, which helps the image of the firm, attracting more guests and employees to the organizationManaging Emotional LaborJust as we try to understand the needs of our customers, we need to understand the needs of our employeesEmotional labor is the necessary involvement of the service provider’s emotions in the delivery of the serviceImplementation of a Reward and Recognition SystemTo sustain a service culture, human resource policies must create a system that rewards and recognizes employees and managers that provide good customer serviceManage Emotional LaborImplement a Reward and Recognition System
9 Key TermsCast members A term used for employees. It implies that employees are part of a team that is performing for their guests.Cross-training Training employees to do two or more jobs within the organization.Emotional labor The necessary involvement of the service provider’s emotions in the delivery of the service.Empowerment When a firm empowers employees, it moves the authority and responsibility to make decisions to the line employees from the supervisor.Internal marketing Marketing by a 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.Moment of truth Occurs when an employee and a customer have contact.Organizational culture The 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.