Internal Marketing
Phuong Nguyen
Created on May 4, 2023
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Thien Nguyen - 23004266 Phuong Nguyen - 23004935 Ha Lam - 23004946
Topic 2
Start
INTERNAL MARKETING & HRM
5- Roles of HRM in internal MKT
1- What is Internal Marketing?
2- Model of Internal Marketing
3- Internal MKT: A new perspective for HRM
4- How is HRM involved in Internal MKT?
table of content
INTERNAL MARKETING?
Strengths & Weaknesses of Internal Marketing
WHAT IS
- Simon Sinek
Customers will never love a company until the employees love it first.
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Communications perspective
Human resources perspective
Customer-centric perspective
Strategic perspective
Different perspectives on Internal Marketing
APPLE - Happy employees, happy customers
Why is internal marketing so important?
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Internal marketing involves promoting your organization’s mission, objectives, purpose, culture, products and services, and brand to your own employees. Occasionally referred to as “employee marketing,” the purpose of internal marketing is to “sell” your business to your employees so they are more engaged, brand-aware, and knowledgeable about your organization.
What Is Internal Marketing?
When employees care about and believe in the brand, they’re motivated to work harder and their loyalty to the company increases.
Understand what brand have promised the public.
Help employees make a powerful emotional connection to the products and services.
Why is internal marketing so important?
- The company tells its customers and the outside world.
- What attracts customers and sets the company apart from its competitors.
- Plays a significant role in shaping customers' perceptions of the company.
- Express through: the customer experience, branding, marketing, and social media.
- The company tells about itself to its employees, which is a key component of culture.
- What motivates employees and drives the company's decision-making.
- Foundation for how employees interact with customers and represent the company to the outside world.
- Express through: mission, values, and vision statements.
EXTERNAL MARKETING
INTERNAL MARKETING
vs
INTERNAL & EXTERNAL Marketing
- Cost
- Limited impact
- Competing priorities
- Employee engagement
- Organizational culture
- Productivity
- Profitability
THE DISADVANTAGES
THE ADVANTAGES
vs
Advantages & Disadvantages
Models of Internal Marketing
02
- Both the internal and external marketing programs aim to target different customer groups
- The main objective of both programs is to achieve the main goals of the company
Relationship between internal marketing and external marketing
- Internal marketing in the 1980s = preparing services for customers
- Interactive marketing derived from this, involves personal sales & contact between employees & customers
- Biggest evolution = Relationship marketing
- Aims to develop long-lasting relationships between companies/brands & loyal clients
- Focuses on developing relationships between the company and consumers
- Also involves developing relationships between the seller and the consumer
The "trilogy" of services marketing
- Internal Marketing (IM) mix: The controllable elements within an organization that can influence its internal marketing. 11 controllable elements that can be used to influence employees, who are considered internal customers, equivalent to the key customer segments in external marketing:
- Strategic rewards: bonuses, and recognition programs designed to motivate employees to achieve specific goals and objectives.
- Internal communications: all forms of communication within the organization, including employee newsletters, company intranets, and other internal messaging systems.
- Training and development: providing employees with the necessary training and development opportunities to enhance their skills and knowledge.
- Organizational structure: the way in which the organization is structured, including the hierarchical arrangement of departments and the distribution of power and authority.
Internal Marketing Mix
- Senior leadership: the leadership style and behavior of the senior management team, which can have a significant impact on the organization's culture and values.
- Physical environment: the design and layout of the physical workspace, as well as the overall work environment.
- Staffing, selection, and succession: the processes and procedures for selecting, hiring, and promoting employees.
- Interfunctional coordination: the way in which different departments and functions within the organization work together to achieve common goals.
- Incentive systems: the use of rewards and recognition programs to motivate employees to achieve specific goals and objectives.
- Empowerment: the process of giving employees the authority and autonomy to make decisions and take actions that are in the best interest of the organization.
- Operational/process changes: this element of the IM mix focuses on making changes to the organization's operational processes to improve efficiency and effectiveness.
Marketing philosophy and tools:
- Philosophy: Customer orientation, market segmentation, value proposition, brand positioning, competitive advantage, etc.
- Tools: Advertising, sales promotion, public relations, direct marketing, digital marketing, social media, etc.
- Organizational competencies: may include customer service skills, product development expertise, operational efficiency, and innovation capabilities.
Conceptual Model of Internal Marketing
- The interaction between the company, employees, and customers.
- Treating employees as customers.
- Jobs should be treated as products.
- HRM team should use marketing techniques and strategies to communicate and promote job opportunities.
Leonard Berry's Model
- Christian Grӧnroos models has several distinct characteristics:
- To be customer-conscious: Supportive recruitment, proper training, and participative management style.
- Access to information is crucial for employees. they must be informed of marketing and communication strategy changes.
- All internal marketing activities must benefit from supportive senior management supervision and involvement.
Christian Gronroos’s Model
Contrast
- Interrelationship between the criteria for internal marketing (IM) and the implementation of a specific organizational strategy.
- The concept of IM goes through 03 phases of development:
- First phase: focused on employee motivation and satisfaction.
- Second phase: customer orientation focuses on understanding and meeting the needs of external customers.
- Third phase: strategy implementation. The company uses internal marketing to implement and manage organizational change
A Model of Internal Marketing for Services
Internal MKT: A new perspective for HRM
03
- Internal Marketing Objectives and HRM functions.
- HRM functions/activities can support to achieve internal MKT objectives.
- Challenges Facing the HR Manager.
- The Marketing – HRM Analogy.
- The HRM – Marketing Function.
- HRM Marketing Activities.
- (Market Research/Mission/Segmentation/MKT Mix)
Agenda
IM relates to all organisational functions, but it is vitally concerned with managing human resources.(Adrian Payne & Brett Collins 1991) stated that a market-oriented human resource manager is more likely to make an impact on the success of a company through being more effective in both demonstrating the relevance of human resource movement (HRM) to all management team members and helping other managers to increase their productivity.
Introductions
Question 1:How can well-define the customers of the HR Dept. and who they are?Invite GR 1 to discuss base on their preparing
Answer:According to GR1, internal customers are all firm employees, including staff, managers, and the board of directors. The HR department should have investigated their wants, needs, and insight and treated them as customers. The HR department should design each product suitable for each segment of its customers. Moreover, the customer here also means the customer that the firm is serving. Through the satisfaction of internal customers, the firm can improve its service and products to satisfy its customer in the market. This can be an advantage of the firm compared to other competitors.
Q&A
Strategic HRM can be unattractive to managers under pressure since it requires a considerable commitment of organisational resources, which directly and instantly affects revenues. The area of quick results is receiving more attention. (Adrian Payne & Brett Collins 1991) showed that gaining support from senior management, securing the CEO's commitment, and ensuring HRM make the most effective contribution to the organisation’s goal must be the central tasks of HRM. By assisting other managers in boosting their productivity, HRM will position itself as a crucial component of a company
Challenges Facing the HR Manager
(Adrian Payne & Brett Collins 1991) showed that there are similar roles for marketing and HR managers
- The MKT and HRM processes both involve creating and exchanging utilities.
- A need to represent the client's interests against the narrow interests of another manager may lead to the company's well-being. But, it is a source of open interdepartmental conflict and is hard to be managed.
- Both functions require commitment and support from the CEO to succeed.
- The market orientation can be applied equally to the MKT or HR functions when it is accepted that success is achieving organisational goals through customer satisfaction
The Marketing – HRM Analogy
According to (Adrian Payne & Brett Collins 1991) the requirement for a marketing manager to represent a customer's interests in opposition to other managers' needs can be a source of interdepartmental conflict. Examples of conflicts between the accounting and marketing functions exist.The accounts department is responsible for managing credit control, while the sales department should be focused on keeping a positive relationship with the customer and an uninterrupted supply. When Sales are attempting to meet an unexpected increase in demand, Accounts may request the withholding of goods because credit guidelines have been exceeded, leading to an open conflict.
The Marketing – HRM Analogy
Question 2: What is HRM’s role in dealing with inter-departmental conflict?Invite GR 3 to discuss base on their preparing
Answer:According to GR3, when the conflict between inter-department happens. The HR department should play a role as a third party to join the discussion and advise them to consider the objective of the firms. Then we can figure out the best way to solve the problem despite the different perspectives of departments. Moreover, if the problem is still unsolved, they can escalate it to a higher level. For example, the board of directors balances them because the board of directors are the one who is responsible for the effectiveness of the firm and its objectives. However, the actual situation in the market is that HR did not jump in between the arguments. They will stand out, look at the fight, and then advise the CEO, who is dealing with the conflict.
Q&A
According to (Adrian Payne & Brett Collins 1991), the HR function can improve a firm's ability to serve the needs and wants of its external customers. Internal MKT assists HR managers in attracting and retaining the kind of people a company wants and in getting the best of in-house customers. MKT activities are becoming more successful and/or efficient thanks to marketing management
- Effectiveness is the extent to which organisational goals are met.
- Efficiency is concerned with how resources are used to achieve these goals.
The HRM – Marketing Function
(Adrian Payne & Brett Collins 1991) showed that
- Market Research: HR managers should begin by understanding the requirements and preferences of the customer they assist.
- Mission: A mission statement should be created expressly for HRM because the corporate mission statement of an organization is too general to be effective for a particular business function
- Segmentation: The necessity to respect individual diversity is acknowledged when employees are segmented based on their requirements and preferences as opposed to executive clients.
- Marketing Mix for IM
Marketing Activities
How is HRM involved in Internal MKT?
04
How is HRM involved in Internal MKT
- Planning: The HRM function of planning can contribute to improving employee engagement by setting clear goals and standards for employee performance, and by developing plans and forecasts that align with the overall IM strategy.
- Organizing: The HRM function of organizing can contribute to improving employee engagement by establishing clear lines of communication and channels of authority within the organisation. This can involve creating cross-functional teams focused on IM initiatives and ensuring that each team member has clear roles and responsibilities.
- Staffing: The HRM function of staffing can improve employee engagement by recruiting and selecting employees with the skills and attributes needed to support the IM objectives. This can involve setting performance standards and compensating employees in a way that rewards behaviours and actions that are aligned with the IM strategy
HRM functions/activities can support to achieve IM objective
- Leading: The HRM function of leading can improve employee engagement by creating a positive work environment and maintaining morale. This can involve recognising and rewarding employees who demonstrate behaviours that support the IM objectives and by communicating the importance of IM to all employees.
- Controlling: The HRM function of controlling can improve employee engagement by setting clear standards and performance metrics tied to the IM objectives.
HRM functions/activities can support to achieve IM objective
Role of HRM in Internal Marketing
- The role of Human Resource Management (HRM) in internal marketing (IM) is to support the achievement of IM objectives by implementing HRM functions and activities that contribute to creating a strong corporate culture, improving employee engagement, enhancing employee motivation, promoting knowledge sharing, and strengthening the employer brand.
- HRM can support IM objectives through various functions such as planning, organizing, staffing, leading, and controlling.
- HRM plays a critical role in supporting the implementation of IM by aligning its activities with the company's values, mission, and vision.
Role of HRM in Internal Marketing
If Internal marketing and Human Resource Management can be seen as source of competitive advantages?