Services Marketing

Chapter 18 : Internal Marketing

Definition of Internal Marketing
The Role of Internal Marketing
Components of an Internal Marketing Program

Developing and Implementing an Internal Marketing Program

Recruitment and Selection
Motivation
Education and Training
Coordination
Empowerment
Rewards
Communication
Knowledge Sharing through Knowledge Management

Chapter Summary

Internal marketing is a process in which organizations consider employees as internal customers and strive to satisfy their needs and requirements at work so that they, in turn, offer quality service to external customers. Internal marketing plays an active role in retaining customers as well as employees, enhancing corporate image, implementing change management and ensuring the organization's success.

The major components that organizations need to include in the design of their internal marketing program are recruitment and selection; motivation and rewards; education and training; coordination; empowerment; communication and knowledge sharing. For implementing an internal marketing program effectively, organizations need to recruit skilled and talented people, motivate them with rewards, achieve coordination among employees, empower them, encourage two-way communication and knowledge sharing through knowledge management.

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