Chapter 10: Internal Marketing
Chapter Objectives
1. Understand why internal marketing is an important part of a marketing program.
3. Describe the three-step process involved in implementing an internal marketing program.
4. Explain why the management of nonroutine transactions can create the image of being an
Teaching Suggestions
The following explanations and suggestions are outlined based on the Chapter Objectives.
1. Understand why internal marketing is an important part of a marketing program.
The hospitality industry is unique in that employees are part of the product. The hotel
must have a staff that will perform well during moments of truth. The service encounters
2. Explain what a service culture is and why it is important to have a company where
everyone is focused on serving the customer.
A service culture is a culture that supports customer service through policies, procedures,
3. Describe the three-step process involved in implementing an internal marketing
program.
Internal marketing is a process that involves the following three steps:
(1) Establishment of a service culture
Ask students to design an internal marketing program for a hospitality operation. What
actions will they need to take during the three steps?
4. Explain why the management of nonroutine transactions can create the image of
being an excellent service provider.
An advantage of a strong culture is that it prepares employees to handle nonroutine
transactions. A nonroutine transaction is a guest transaction that is unique and usually
Chapter Outline
I. Internal Marketing [Slide 10-3]
E. The hospitality industry is unique in that employees are part of the product.
F. Marketers must develop techniques and procedures to ensure that employees are
II. The Internal Marketing Process [Slide 10-4]
F. Establishment of a service culture [Slide 10-5]
10. An organizational culture is a pattern of shared values and beliefs
11. Weak culture (not sure if this is a part of service/organization).
12. Turning the organizational chart upside down. [Slide 10-6] Service
13. Empower and train employees to handle nonroutine transactions.
[Slide 10-7]
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G. Development of a marketing approach to human resources management [Slide 10-
8]
15. Use a hiring process that identifies and results in hiring service-
oriented employees.
17.
18. Provide continuous employee training programs.
20. Reward and recognize customer service and satisfaction.
H. Dissemination of marketing information to employees
22. Employees should hear about promotions and new products from
management, not from advertisements meant for external customers.
24. Hospitality organizations should use printed publications as part of
their internal communication.
26. Employees should receive information on new products and
I. Employee involvement in uniform selection
Answers to Discussion Questions
1. Why are employees called internal customers?
Employees work and serve the organization from the inside. Companies must serve
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2. What is a service culture? Why is it a requirement for an internal marketing
program?
A service culture is an organizational culture that supports customer service throughout
its ranks. It focuses the attention of management on the moments of truth for the
3. Discuss the possible ways that marketing techniques can be used by human
resources managers.
This is an interesting question for class discussion. For example, a good marketer will
4. What are the benefits of explaining advertising campaigns to employees before they
appear in the media?
If the employee is less informed than the customer, or uninformed, it reflects poorly on
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5. The handling of nonroutine transactions separate excellent hospitality companies
from mediocre ones. Discuss this statement.
Most companies can perform routine transactions well. Problems usually occur when