Internal marketing

Internal marketing resembles marketing information system with enterprise's clients: employees are divided into segments that have their own information needs, then a target group is chosen and a message is adjusted to its character. Other arguments and forms of message are used in case of explaining a necessity of employment restructuring. This type of marketing enables to access employees with knowledge about organization - internal changes, planned or taken strategic decisions and outcomes of activities. The effect of conveying this knowledge is a higher level of workers' job satisfaction, a rise in their involvement and better organizational identification, whereas decision-making is based on the background of current company's situation.

Internal marketing consists in the assumption that in every organization there is an internal market in which a traditional role of customers is performed by workers. This market is submitted to a broad examination and marketing influence that serves as the realization of tactical and strategic goals, mainly aimed at:

• motivational processes
• stimulation of desirable managerial attitudes
• an advance of a system of internal and external communication

The sense of internal marketing application in organization results from the belief that knowledge, abilities and behavior of workers have the critical influence on the intelligent functioning of an organization. Organisational culture managed according to the following rules puts particular emphasis on:

• importance of every worker's contribution in the process of added value creation
• synergistic effect of collaborative work
• developed system of worker's participation in decision-making process.

Widely employed technique in internal marketing is reengineering - owing to the fact that implementation of internal marketing in a conservative-structured organization should be a radical and dynamic process. Also, because of the fact that internal marketing should be always understood as the continuous process.

Principles of internal marketing

Main principles of internal marketing

1. All workers in their actions are aware of company's goals, mission an marketing strategy
2. A collaboration of every unit and every employer bases on consumer and purchaser rule

The optimal situation is the one in which services provided by employees and units reach a high level. Creating reputation of a company plays a key role - it is connected with functioning both inside and outside of a company. Tough tasks include reaching good reputation outside if employees don't have a good opinion about a company. Internal marketing is actions of enterprise that aim at creating a personnel team which realizes this type of marketing in practice, in an aware and reasoned way. Means of executing internal marketing:

• staff training
• human resource policies
• motivational systems and employee appraisal

Conditions that allow its realization:

• approving of a company and its goals by staff
• occurrence of open information channels inside a company
• formal and informal collaboration between work posts
• favorable working atmosphere

The role of staff in marketing departments

Employees - a showcase of a company Regardless of the type of activity that you run, from the viewpoint of advertisement and marketing, it is very important to have staff support all the time. It is significant due to at least two reasons:

1. Staff is the showcase of a company. Efficient, kind and optimistic employees are probably one of the most crucial assets of a business.
2. It is relevant for workers to have awareness of promotion campaign that was planned by a firm in which they work. It is important that they have a right to co-decide or at least to voice about matters concerning for example sales ads. Under the term, internal marketing are placed all your activities that aim at staff involvement. Personnel policy of a company is of great importance, it is inseparably related to marketing, irrespective of whether an employee serves in:

• production
• administration
• sales
• acquisition
• marketing

If you are not able to convince your workers to your ideas, presumably you will not be able to do it in case of people from outside of a company. If a client contacts your organization, the first impression is crucial. Belief in a strategy of an enterprise and well-being of workers will also be noticeable in contacts with a client. Marketing of a company is not only aimed at clients, it is also vital how you will be received by suppliers, bank workers, authorities. If they find you a person good to work with, it reflects well on you. Another target group of company's marketing are present and future employees. It is of major importance that a good opinion about working in your company is diffused in the environment. Due to this, you will be able to enlist interesting people that suit the particular image of the enterprise. Internal marketing is an interest of the whole company. This type of marketing reflects the soul of a firm. Tone given to the advertising letter, selection of papers, illustrations throughout which company advertises, the way it employs direct advertising, is actually very personal. Therefore, it is important for marketing to become an issue of the whole company. In case of a worker who does not like advertising folder of enterprise, he will not be a good ambassador for it. In the event of a bigger firm, there might be appointed a group of employees, their task will be to pronounce opinions of marketing maneuver plans before implementation. In a smaller company, everyone can participate in such a discussion.

Advantages of internal marketing

From a wider perspective, owing to internal marketing we have a chance to:

• decrease conflicts in company
• enhance staff creativity
• escalate engagement in the initiation of changes
• extend a sense of community
• vivify cooperation of managers with workers due to an endorsement of openness in interpersonal relations
• release positive behaviour

Examples of Internal marketing

• Employee Engagement Programs: Employee engagement programs are designed to improve the relationship between employees and the company. Programs may include activities such as team-building activities, rewards and recognition programs, open-door policies, career development programs, and more.
• Employee Recognition Programs: Employee recognition programs are an important part of any internal marketing strategy. These programs are designed to reward employees for their hard work and dedication. They can include rewards such as gift cards, cash bonuses, and special recognition awards.
• Internal Communications: Internal communications are a key part of any internal marketing strategy. Through regular newsletters, emails, and other communications, the company can keep employees informed on the latest news and updates. This helps to keep employees engaged and motivated.
• Employee Surveys: Employee surveys are a great way to get feedback from employees and learn what they think about the company. Surveys can include questions about job satisfaction, workplace environment, and more. This feedback can be used to shape the company’s internal marketing strategy.

Limitations of Internal marketing

Internal marketing has several limitations, including:

• Limited reach: Internal marketing is focused on the employees of an organization and their families, thus having a limited reach.
• Costly to implement: Internal marketing techniques can be costly to implement due to the need to educate and train employees, as well as develop and maintain the necessary tools and systems.
• Time Consuming: Internal marketing is a slow process and requires a significant amount of planning, preparation and execution. It can take a long time to get employees on board with a new initiative or strategy.
• Communication issues: Internal marketing initiatives can be hindered by communication issues within the organization. This can make it difficult for organizations to effectively communicate their message to employees.
• Lack of External Focus: Internal marketing is focused on the internal workings of the organization and not the external environment. This can make it difficult for organizations to keep up with external trends and changes in the market.

Other approaches related to Internal marketing

Internal marketing consists of various approaches that are aimed at increasing employee motivation and engagement. The following are some other approaches used for internal marketing:

• Employee Recognition Programs: This type of program is designed to recognize and reward employees for their hard work and dedication. These programs can range from recognizing individual contributions to team performance.
• Incentive Programs: Companies use incentive programs to motivate employees to achieve specific goals. Some examples of incentive programs include bonuses, awards, trips, and gift cards.
• Communication Strategies: Effective communication is essential for maintaining employee engagement and motivation. Companies can use various communication strategies such as newsletters, emails, and social media to keep employees informed and engaged.
• Employee Surveys: Employee surveys are a great way to gain insight into employee opinions and feedback. Companies can use survey results to identify areas of improvement and make changes accordingly.

In summary, internal marketing requires a variety of approaches, such as employee recognition programs, incentive programs, communication strategies, and employee surveys, to increase employee motivation and engagement.

Internal marketing — recommended articles

Change management model — Holistic marketing — Management by objectives — Organizational development — Adaptation process — Promotion mix — Strategic intent — Organizational progress — Motivation system

References

• Pervaiz K. Ahmed, Mohammed Rafiq, (2003) "Internal marketing issues and challenges", European Journal of Marketing, Vol. 37 Issue: 9, p. 1177-1186.
• Mohammed Rafiq, Pervaiz K. Ahmed, (2000) "Advances in the internal marketing concept: definition, synthesis and extension", Journal of Services Marketing, Vol. 14 Issue: 6, p. 449-462.
• Walter E. Greene, Gary D. Walls, Larry J. Schrest, (1994) "Internal Marketing: The Key to External Marketing Success", Journal of Services Marketing, Vol. 8 Issue: 4, p. 5-13.
• Susan K. Foreman & Arthur H. Money (2010) "Internal marketing: Concepts, measurement and application", Journal of Marketing Management, Vol. 11, No. 8, p. 755-768.