RELATIONSHIP MARKETING: THE ROLE OF INTERNAL MARKETING
Relationship marketing is considered as a source of lasting financial benefits to an organization. An organization that is able to build a strong tie with its customers is likely to gain customer royalty. The aim of relationship marketing according to Proctor (2000) is to find ways of enhancing the mutual benefits derived from the relationship. Successful relationship marketing involves the targeting of customers of sufficient value to justify the investment in creating relationship with them.
The success of relationship marketing lies in primarily to those who facilitate customer relationship. It is of great importance that the employees are committed to the relationship-building activities and the relationship-process maintained. The success of relationship marketing lies in the hands of those who implement it. Every member of the organization needs to understand his or her role in the relationship building, be committed to it and be motivated to ensure that it succeeds. The role of internal marketing is primarily motivating and educating the employees.
Relationship Building with Customers
Relationship marketing as has been said can be a source of lasting financial profitability for an organization. Building strong relationship with customers requires an active and creative approach. Relationship marketing is about healthy relationships which are typified by concern, trust, commitment and service. Relationship marketing requires an organization-wide commitment to provide a high-quality service, which is reliable, emphatic and responsive.
Internal Marketing as a Requirement for Relationship Marketing
There are different considerations in order for relationship marketing to flourish. One requirement is supportive culture. The organization must also understand the expectations of the customers. A sophisticated customer database is also required. An effective customer database is important as it provides information in actionable format for the development and monitoring of a relationship marketing strategy and tactics. Another requirement is a new organizational compensation or reward schemes.
Perhaps the most important requirement for relationship marketing is internal marketing. The aim of internal marketing according to Proctor (2000) is to convert employees to the new ideology of relationship marketing, to promote the development of the new culture, to persuade them that it is reasonable approach to business, and to motivate them to develop and implement relationship-marketing strategies. The internal market’s expectations and needs have to be met. If the organization is unable to meet its employees’ needs, it is likely that they will defect to other jobs before being able to build long-lasting relationship with customers (p.272).
Internal marketing is a management approach which enables and motivates all members of the organization to examine their own role and communication competence and to adopt a customer consciousness and service orientation. Customer orientation and internal marketing are complementary. Internal marketing appears to be a philosophy of emphasizing the importance of employees in an organization’s efforts to satisfy its external customers.
Internal marketing is important to the success of service-centered firms. It has been suggested that effective service depend on the success of internal marketing. A firm that values its customers and aims to establish a long-lasting and profitable with them needs to satisfy the needs of the internal customers first. The needs of employees are what internal marketing aims to fulfill.
According to the research conducted by Batesan (1995), the creation of two related but different climates is important for service-oriented organizations. These climates are: climate for service and a climate for employee well-being. The climate for employee well-being serves as a foundation for climate for service. Employees need to be assured that their needs have been met before they can show interest and concern for meeting the needs of customers. Satisfied employees are motivated to deliver high service value, which then creates satisfied customers (Proctor 2000).
The role of internal marketing is to ensure that the needs and expectations of the employees, as internal customers, are met or even exceeded. The success of the internal marketing program depends of the ability of the management to align corporate goals with personal needs and interests. The employees must view themselves as important contributors to the success of the organization. Internal service quality is connected with the external service quality, customer satisfaction, customer loyalty and profitability. Heskell et al(1994) proposed that high quality internal services lead to increased service value, leading to increased external customer satisfaction.
FACILITATING INTERNAL MARKETING
There are different strategies that an organization can employ in order to facilitate internal marketing. Some of these are:
- Inform the internal market about the organization’s mission and its role within it.
- Ensure that the internal information and communication channels work effectively in order to sell ideas and services internally.
- Implement special motivation programmes directed at front line service providers that recognize that the front-line personnel form a critical means of meeting competition.
- Apply mechanisms that measure the gap between internal customer expectations and perceptions.
- Recognize a greater desire on the part of employees to play an active role in all aspects of work life that affects them.
- Use marketing tools and concepts internally with employees.
- Get managers to accept the need for understanding employee capabilities – their attitudes, know-how and skills and to allow employees to participate in internal marketing strategy.
- Continually strive to create an internal environment which enhances employee-customer satisfaction.
- Establish an open information climate in order to improve interpersonal interactive communication channels and to apply an internal marketing program.
- Initiate a programme to educate employees on important industry issues.
- View the development of knowledge and skills in employees as an investment rather than a cost.
- Motivate employees through reward incentives to provide excellent service.
- Demonstrate how the work of every employee fits the broader scheme of business operations and how their work contributes to the firm.
- Keep employees informed of new developments within the organization (Proctor 2000).
Internal Marketing: Focus on Internal Customers
Internal marketing is about developing employees who are service-oriented and customer-conscious. Internal marketing helps the employees get familiar with the firm’s products and services before they are marketed externally. Exposing the employees to the firm’s marketing campaigns ensures education, understanding and preparedness of the employee. Increasingly, it is important to stress marketing in roles that are traditionally considered non-marketing roles such as in areas of production, inventory management, technical support and so on. This represents an attempt to improve quality, performance and efficiency. The premise of IM is that the internal exchanges between employees must be operating effectively before the firm can successfully achieve superior performance in its external markets.
INTERNAL MARKETING MIX
The marketing mix, which traditionally included 4 Ps (Product, Price, Place and Promotion), in recent times, come to include a fifth element. The additional element is
‘people’ – an element that exists both within the internal and external marketing mix. The addition of people in the marketing mix has placed greater emphasis on the employees, first as internal customers that have needs and requirements and second, as a source of competitive advantage or as a value-adding component of the product and/or service. The employee embodies both a prospective important resource of the organization as well as an important element of the external value offering. In the external context, this means going beyond the traditional mix and addressing the details of service provided to the customer and attending to the elements that affect the customer experience. The organization needs to establish a strong relationship with the internal customers. This entails the enhancement of the service environment such that this group can be developed as a part of the product offering made to the external market. The employees are seen as a competitive advantage. The marketing mix must aim to attract and retain valuable employees. This incorporates issues of benefits, incentives, work environment and skills. It should also create a satisfied customer who believes in, supports and enhances the organization.
An acceptable product is first and foremost, the requirement of a sound marketing plan. This rule also applies to internal marketing. The product offered in the internal market must be of value to the employees. The product offering of the organization is the employee’s job and role within the organization. In order to satisfy the employees, the organization must develop a variety of sources from which employees can derive personal value, and these in turn include financial, psychological and psychics variables. The internal marketing program, also requires a deep understanding of the target group (values and motives) in the same way that a marketing programme for the company’s products and services requires an understanding of prospective customers (Barnes 1989 cited in Vernes and Lewis 2000, p.202).
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Ashx> Accessed on 28 October 2010