Definition
Internal marketing refers to a strategy where a company focuses on ensuring that employees understand and commit to the organization’s goals, principles, products and services. It is based on the idea that employees’ attitudes and their level of customer service are crucial for successful external marketing efforts. Therefore, internal marketing aims to foster a company-wide customer-oriented mindset and to align employees’ actions with the company’s mission.
Key Takeaways
- Internal Marketing refers to a management philosophy that emphasizes the application of marketing ideologies within an organization, with the focus of improving communication and fostering staff coordination.
- One key objective of Internal Marketing is to align every aspect of the organization’s internal operations to ensure they are as capable as possible of providing value to customers. This includes ensuring all employees understand the company’s mission, vision, and values, as well as their individual roles in achieving the company’s objectives.
- Implementing Internal Marketing strategies can result in increased employee job satisfaction, improved customer service, and greater overall effectiveness of the organization. It can also enhance employee retention rates, contribute to positive workplace culture, and ultimately lead to increased profits.
Importance
Internal marketing is important in the finance world because it significantly contributes to a company’s overall performance and success. It revolves around promoting a company’s values, mission, and objectives among its internal stakeholders, primarily employees.
This is crucial for creating an aligned, motivated and customer-focused workforce. When the employees understand and believe in the company’s mission, they are likely to convey those values better to external audiences, including customers, thus promoting customer satisfaction and loyalty.
Furthermore, it fosters a positive company culture, driving job satisfaction, employee retention, and productivity, directly impacting the overall profitability and growth of the company. In financial terms, effective internal marketing tactics can reduce recruitment and training costs, increase sales and improve financial performance.
Explanation
Internal marketing is a strategic initiative used by companies to align, motivate, and empower employees at all levels to consistently deliver a positive customer experience. The purpose of internal marketing is to ensure that all members of the organisation understand both the corporate objectives and their own personal role.
This creates a unified workforce working towards a common goal, which is instrumental in fostering a customer-oriented corporate culture. It ensures that all functions, not just those directly related to customer service, are geared towards customer satisfaction.
Internal marketing is often used to inform employees about corporate goals, strategies, and how they can contribute to these. With a clearly defined role, employees can better understand how their duties relate to the company’s success and are more likely to be engaged and committed.
By promoting an understanding of the organisation’s values, mission, products and services, internal marketing helps in aligning employees’ values with those of the organisation and fosters their loyalty. Thus, internal marketing plays a crucial role in driving organisational performance, staff morale, and customer satisfaction.
Examples of Internal Marketing
Google: One well-known example of effective internal marketing comes from tech giant, Google. The company fosters a strong company culture and empowers employees through various programs and facilities like their ‘20% Time’ program where employees can spend 20% of their work time exploring their own interests. This initiative not only fosters engagement and creativity within the workplace but gives employees a sense of ownership in the organization, thus enhancing their loyalty and commitment.
Starbucks: Starbucks undertakes intensive internal marketing mainly through their partner (employee) training programs. Each ‘partner’ is made to feel like an integral part of the Starbucks story and mission. The company invests in extensive training, covering everything from crafting the perfect drink to learning about the origins of coffee beans, making employees well-qualified to represent and promote the company to customers.
Southwest Airlines: Internally, Southwest Airlines has nurtured a culture that emphasizes fun, love, and a family-like environment. These values are instilled in all their employees who then represent the company to the rest of the world. The airline constantly communicates with their employees about the company’s mission and vision and seeks to get their feedback and ideas, making them feel valued and essential parts of their ‘family’. This subsequently motivates them to work harder and provide superior customer service.
FAQs on Internal Marketing
What is Internal Marketing?
Internal Marketing is a strategy where a company focuses on employees and internal stakeholders, treating them as internal customers. It is about ensuring employees are aligned with the company’s brand and values, motivating them to provide the best customer experience outside the company.
Why is Internal Marketing important?
Internal Marketing is important as it helps in creating a harmonious and well-informed workforce that understands the company’s objectives and services/products. This understanding and cohesion can then be translated into superior service to the company’s external customers.
What are some examples of Internal Marketing strategy?
Examples of Internal Marketing often include internal communications like newsletters, emails, intranet posts, and meetings. Training sessions, workshops, and team-building activities are also often utilized. The goal is to foster open communication, appreciation, and a sense of belonging among the personnel.
How does Internal Marketing contribute to the overall success of a business?
Internal Marketing contributes to the overall success of a business by boosting employee morale, increasing productivity, and improving job satisfaction. By ensuring employees feel valued and informed, they are likely to deliver better services to external customers, which in turn supports business growth and reputation.
Is Internal Marketing a one-time activity?
No, Internal Marketing is an ongoing process that requires continuous efforts. It’s about maintaining and improving the relationship between the company and its employees, ensuring open communication channels, and regularly reinforcing the company culture and values.
Related Entrepreneurship Terms
- Employee Engagement
- Corporate Culture
- Internal Communication
- Employee Value Proposition
- Employer Branding
Sources for More Information
- Investopedia: An extensive online resource for understanding finance and investing terminologies and concepts, including internal marketing.
- Entrepreneur: A reputable platform with resources for entrepreneurs, startups, and business owners. It contains numerous articles on marketing strategies, including internal marketing.
- Harvard Business Publishing: A leading, trusted resource that offers articles, research, and analyses of a wide array of business topics.
- Forbes: An internationally recognized business website that covers many topics, including strategic internal marketing.
