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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
firms 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
Establishment
of
of aa Service
Service
Culture
Culture

Marketing for Hospitality and Tourism, 6e


Kotler, Bowen and Makens

Development
Development
of
of aa Marketing
Marketing
Approach
Approach to
to
HR
HR

Dissemination
Dissemination
of
of Marketing
Marketing
Information
Information to
to
Employees
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

Organization
al 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.

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.

Cross-training Training employees to


do two or more jobs within the
organization.
Emotional labor The necessary
involvement of the service providers
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.

Marketing for Hospitality and Tourism, 6e


Kotler, Bowen and Makens

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.

2014 by Pearson Higher Education, Inc


Upper Saddle River, New Jersey 07458 All Rights Reserved