Marketing (Internal Marketing)

Marketing

Marketing is defined as the process of determining the needs and wants of consumers and being able to deliver products that satisfy those needs and wants. Marketing includes all of the activities necessary to move a product from the producer to the consumer (Grönroos,2000). Marketing is to establish, maintain and enhance relationships with customers and other parties at a profit so that the objectives of the parties involved are met. This is done by a mutual exchange and Fulfillment of promises. In this report the writer discuss certain aspects of marketing which are internal marketing, service recovery and customer retention.

Internal marketing

When different external factors affect organizations internally, it is important to have a good internal marketing in the service companies especially the hotel industry. Marketing is often thought to be directed towards customers, but it should also be towards employees of the company, because it is they who are in contact with customers (Mitchell, 2002). According to Shimp, (1997) marketing is more about creating value between external and internal parts of an organization and it is achieved through effective communication. Internal marketing is also seen as a part of marketing communication.

 Rydbery and Lyttien, (2005) pointed out that the employee turnover in service companies usually is higher than in other business sectors. The main reason for the turnover is said to be lack of internal marketing practices implemented by the practitioner. Hult, Hurley, Giunipero, and Nichols (2000) pointed out that internal marketing means bearing in mind the internal employee as the internal client and to deliberate on making the  internal customer’s (employee) satisfaction. Liou & Chen, (2001) categorized internal marketing into seven perceptions such as life development, work environment, welfare and salary, individual condition, internal communication, decision participation and service training. Hu, (2003) extracted six perspectives from internal marketing; including work environment, individual development, internal communication, empathy, salary, management empowerment, education and training. Fornell, and Wernerfelt, (1987) thought that internal marketing, like orientation thought of planning practice, could accomplish several aims. It could (1) counteract or conquer organizational disputes for alliance or reform to gain the customer’s satisfaction; (2) create motivation and customer orientation to harmonize and integrate employees; finally, (3) it would cause employees to execute the company’s strategy and functional strategy efficiently.

In the case of Cresta Group of hotels the Human Resources Committee is responsible for ensuring that all matters affecting employees are decided under the authority of the Board and that it keeps abreast of developments in the market place, with regards to remuneration. The Group values its employees and endeavors to recruit and retain the best skills in the market. The focus for developing human capital is based on training, continuous reviews for compensation and benefits.

In the quest of the Group’s drive to improve productivity for the employees; sports was identified as one of the elements that play an important part. Participating across the hotels, the Group has various sporting codes being played, soccer, volleyball, netball, etc. The Group also promotes country sporting competitions between the Cresta in Botswana and Cresta in Zimbabwe. The interaction between these groups is believed to impact positively on employee motivation. Management in conjunction with the Human Resources Committee, continuously reviews incentive schemes for the employees. The Group has got a Performance Appraisal System that issued to reward employees. The results of the appraisal system are also used as inputs for training the employees on various areas.

General employee engagement at various levels of the organization has yielded positive results for the Group. This has led to an improved customer focus. Their employees are allowed to associate themselves with a recognized hospitality Union which will negotiate for better living conditions on their behalf. In the Committee of the Union, there are staff representatives sitting in the meetings to participate in the negotiations for the rest of the staff members.

 

Q.1 what are impacts of internal marketing in hotel industry?

References

Fornell, C. and Wernerfelt, B. (1987) Defensive marketing strategy by customer complaint

Grönroos, C. (2000). Service management and marketing: A customer relationship management approach (2nd Ed.). New York: Wiley.340-344.

Hu, M.L. (2003). A study of internal marketing and satisfaction - a case of international tourist hotels in Taiwan. Tourism management research, 3(2), 1-25.

Liou, B.F. & Chen, Y.S. (2001). A study of medical industry internal marketing - An example of a regional teaching hospital. Journal of health care management, 2(1), 123-136

Mitchell. (2002). How to create communications materials employees will actual use. Harvard business review, 80, (10), and 99.

Rydbery, I, and Lyttien, JP, (2005). Internal marketing in hotel chain-a case study Elite Stadhotell Lul

Shimp, T.A. (1997). Advertising, promotion and supplemental aspects of integrated marketing communication. Forth Worth: Dryden press. Expendea.