Chapter 10 Internal Marketing for Hospitality and Tourism
- Slides: 16
Chapter 10: Internal Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 1
Internal Marketing The Internal Marketing concept states; that the internal market of employees is the best motivated for service-mindedness; and customer-oriented performance by an active, marketing-like approach; where a variety of activities are used internally in an active, marketing-like and coordinated way. Source: Christian Gronroos Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 2
Importance of Internal Marketing • Employees must have a customer service attitude • Employees must understand your product • Employees must be enthused about your product and your company • There must be good communication between employees and management • Employees must be able to identify and solve customer problems Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 3
Objectives • 1. To ensure that employees are motivated for customer-oriented and service-minded performance. • 2. To retain good employees. • 3. To increase customer satisfaction • 4. To increase profitability Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 4
Internal Marketing Process • Establish a service culture • Development of a marketing approach to human resource management • Dissemination of marketing information to employees • Implementation of a reward and recognition program Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 5
Establish a service culture Culture Shared philosophies, ideologies, values, beliefs, expectations, and norms Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 6
Establish a service culture (cont’) Developing a Customer Oriented Organization • 1. Business mission-- managers supervisors and other -- to accept it. • 2. Develop service-oriented management and leadership-- Service Culture-– Management encourages servicemindedness and customer orientation of the employees Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 7
Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 8
Development of a Marketing Approach to Human Resources Management Human systems need some glue, some central theme or themes around which behavior can coalesce. - Katz and Kahn Developing a service culture usually means a change in management behavior and reward systems. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 9
The Relationship Between the Marketing Function and the Marketing Department Source: Gronroos, “Designing a Long Range Marketing Strategy for Services, “ Long Range Planning (April 1980), P. 40. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 10
Development of a Marketing Approach to Human Resources Management (cont’) • • Creating jobs that attract good employees A hiring process Teamwork The importance of initial training Continuous training Employee involvement in uniform selection Managing emotional labor Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 11
Dissemination of Marketing Information to Employees • Information helps employees to solve guest problems. • Employees should hear about promotions, new products, upcoming event, and ad campaigns from management. • Hospitality organizations can communicate with their employees by employee newsletter, in-house newsletter, personal communication, and technology. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 12
Implementation of a Reward Recognition System • Employees must know how they are doing to perform effectively. • The results of any service measurement should communicate with employees • Most reward systems based on meeting cost objectives and achieving sales objectives. A few companies give rewards based on customer satisfaction. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 13
Non-routine transactions: outstanding service opportunities. Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens Empowerment © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 14
• 3. Use marketing techniques to target employees and develop an attractive packages for those employees. – – – Market Research "Deep Sensing" Market Segmentation Product, Price, Promotion-- Distribution Market Segmentation Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 15
• 4. Hire customer oriented employees • 5. Train employees – Develop a pride in the organization and its products – Teach all employees service-oriented communications and interaction skills. • 6. Market to employees before marketing to consumers Marketing for Hospitality and Tourism, 3 e Philip Kotler, John Bowen, James Makens © 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 16
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