Chap 9: Internal marketing

Question 1

Internal marketing in the holistic marketing concept

Kotler and Keller, 2016

Answer 1

A horizontal alignment between marketing department, senior management and other departments, and top-down alignment. It’s about hiring the right person, training and make sure they are motivated to serve customers well.

Question 2

Internal marketing definition

Kotler and Keller, 2016

Answer 2

It requires that everyone in the organization accepts the concept and goals of marketing, and engages in identifying, providing and communicating the customer value.

Question 3

Roles of internal marketing for customers:

Mitchell, 2002

Answer 3

• reduce churn rate
• increase customer satisfaction
• create differentiation and loyalty in the context of commoditized product and service.

Question 4

Roles of internal marketing for employees:

Mitchell, 2002

Answer 4

• emotional connection with product/service
• motivated to work harder and their loyalty increases
• a sense of direction and purpose

Question 5

Employer branding: (Foster et al, 2010)

Answer 5

ensure to recruit the right people

Question 6

Internal branding: (Foster et al, 2010)

Answer 6

adopt branding concept to deliver brand promises to stakeholders

Question 7

Corporate branding: (Foster et al, 2010)

Answer 7

• to represent the corporate value, identity
• to deliver an explicit brand promise
• to guide both internal branding and employer branding

Question 8

Internal marketing in reality

Answer 8

It has the potential to develop into high service quality and customer satisfaction. However, in reality, it is often misunderstood and overlooked so it became a perfunctory add-on. Companies seldom invest in market research about their employees as the audience.

Question 9

Criteria for a successful service brand (deChattorny and Segai, 2003)

Answer 9

Main: focused message, consistency and core value

Question 10

Lessons for a successful service brand (Bendapudi and Bendapudi, 2005)

Answer 10

1. Look for people with intrinsic traits rather than working experiences.
2. Training and support employees (if needed).
3. Create pride in the brand.
4. Build customer loyalty through a sense of community.
5. Share the business context.
6. Satisfy the soul: Meet the needs of justice, esteem, and security.

Question 11

Examples for Lessons of a successful service brand (Bendapudi and Bendapudi, 2005)

Answer 11

1. Wawa = passion for work and life
2. Wawa = Tuition reimbursement
3. Wawa = Private-label offering focus on simplifying customer’s lives
4. QT allocates 5% of annual profit to charity
5. QT: full-time associate is trained to read the store’s monthly financial statements
6. QT: no employee ever works alone, the stores are brightly lit.

Question 12

Challenge to deliver a consistent and distinctive customer brand experience (Mosley, 2007)

Answer 12

• Operational complexity
• Interpersonal complexity between customers and providers (different people involved, the depth of knowledge, the quality of relationship)

Question 13

Treating employees as customers (Bower and Martin, 2007)

Answer 13

• Conduct MR to determine what employees’ job needs for hiring, training, and motivation.
• Market segmentation and product development (job-products) to different employee segments (flexible working hours, benefits, expanded job responsibilities).
• Pricing: Base wages, compensation on performance with customers.
• Recognition to outstanding employees.
• Attract and keep competent people by marcomm communications.

Question 14

Theoretical development of internal marketing (CIM)

Answer 14

Internal market > Service employees and part-time marketers > Internal market orientation