Marketing Strategy and Competitive Positioning pdf ebook


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hooley graham et al marketing strategy and competitive posit

Figure 16.2 
Customer 
satisfaction in the 
internal market and 
external market
High
High
Low
Low
Synergy
Coercion
Alienation
Internal
euphoria
External customer satisfaction
Int
ernal cust
omer satisfaction


464
CHAPTER 16 STRATEGY IMPLEMENTATION AND INTERNAL MARKETING
16.3.2 Internal marketing as internal communications
As well as customer care training and a focus on service quality, internal marketing may also be 
seen as internal communications. In fact, the largest growth in this area has been investment by 
companies in broader internal communications programmes of various kinds – where ‘commu-
nications’ is understood as providing employees with information and delivering messages that 
support the business strategy. The goal of internal communications normally is to build both 
understanding and commitment. Often, these activities tend to be a responsibility of the human 
resource department. One industry study (Pounsford, 1994) suggested that managers saw the 
role of internal communications in the terms (and with the advantages) shown in Table 16.1.
The manifestations of this form of internal marketing include company newsletters, 
employee conferences and training, video-conferencing, satellite TV transmissions, inter-
active video, corporate social media platforms, email and so on. Increasingly, creating 
dialogue within an organisation and encouraging employee involvement can involve 
approaches such as Web-based internal blogs (Hathi, 2007). These delivery mechanisms 
are important, but are in danger of obscuring an important point: instructing and informing 
people about strategic developments is not the same as winning their real involvement and 
participation. Real communication is a two-way process – listening as well as informing. 
This may be why internal communications appear ineffective in some companies. There is 
a risk that internal communications programmes become about telling and persuading, not 
listening. This may be said to be internal selling not internal marketing.
Indeed, large companies such as Microsoft and Germany’s SAP have an organisational 
role for a ‘chief storyteller’ to promote storytelling as internal communication related to 
management, innovation and change to staff and investors, although some commentators 
are sceptical about their value (Hill, 2014).
Perceived role
Illustrative comments
Team building
Educate employees about breadth and diversity of the organisation
Assist cooperation between divisions
Damage control
Prevent managers getting communications wrong
Suppress bad news
Counter pessimism
Morale builders
Build confidence
Increase motivation
Involvement
Represent employee opinions upwards
Create channel to share problems/values
Increase people recognition
Change 
management
Increase understanding of the need for change
Test new ideas
Help people relate to rapidly changing environment
Goal setting
Help steer organisation in a coordinated direction
Provide focus on corporate goals
Generate support for policies

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