establishment of service culture

Welcome to

The 1st step ofinternal marketingEstablishment of Service CultureRina Suprina, M.Hum, M.SiPar

Ivan Prasetya M.Par

The Internal Marketing Process

Establishment of a Service

Culture

An internal marketing program flows out of a service culture

• a service marketing program is doomed to failure if its organizational culture doesn’t support serving customers

Establishment of a Service

Culture

Establishment of a Service

Culture

An internal marketing program requires a strong commitment from management

A major barrier to most internal marketing

programs is middle management

• managers have been trained to watch

costs, increase profits

• reward systems are based on achieving

certain cost levels

Establishment of a Service

Culture

Establishment of a Service

Culture

If management expects employee attitudes to be positive toward customers, management must havea positive attitude toward the customer & employees.

Establishment of a Service

Culture

Too often, organizations hire trainers to come in fora day to get their customer-contact employees excited about providing high-quality customer service.

Establishment of a Service

Culture

The effect is usually short lived because the organizations do little to support the customer-contact employees

• managers tell receptionists to be helpful & friendly, yet often the receptionists are understaffed

Establishment of a Service

Culture

Management must develop a service culture: a culture that supports customer service through policies, procedures, reward systems, and actions.

Establishment of a Service

Culture

An organizational culture is the pattern of shared values & beliefs giving members of an organization meaning, providing them with rules for behavior in the organization.

Establishment of a Service

Culture

A strong culture helps organizations in two ways

• it directs behavior

• it gives employees a sense of purpose & makes them feel good about their company

Establishment of a Service

Culture

Culture serves as glue to hold an organization together, and when an organization has a strong culture, the organization & employees act as one.

Establishment of a Service

Culture

A strong service culture influences employees to act in customer-oriented ways and is the first step toward developing a customer-oriented organization.

Establishment of a Service

Culture

Developing a customer-oriented organization requires a commitment from management of both time and financial resources.

• management must be committed to these changes, they do not result from a memorandum sent by the CEO

Establishment of a Service

Culture

In some companies, including Hyatt, McDonald’s, and Hertz, management spends time working alongside customer-contact employees serving customers.

• this makes it clear management doesn’t want to lose touch with operations and cares about employees & customers

Establishment of a Service

Culture

A service culture & internal marketing program can’t be developed without the support of management.

Establishment of a Service

Culture

Organizations cannot expect their employees to develop a customer-oriented attitude if it is not visibly supported by company management.

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Weak CultureThe Internal Marketing Process

Weak Culture

In firms that have weak corporate cultures, there are few or no common values and norms.

• employees are often bound by policies & regulations that may make no sense from a customer service perspective

Weak CultureEmployees become insecure about making decisions outside the rules and regulations.

Weak Culture

Because there are no established values, employees do not know how the company wants them to act.

• they spend time trying to figure out how to behave

Weak CultureWhen they come up with a solution, they must get a supervisor’s permission before applying it.

Weak Culture

Supervisors, in turn, may feel the need to pass the responsibility upward.

• during the decision process, the guest is kept waiting

Weak Culture

In a company with a strong service culture, employees know what to do, and they do it.

• customers receive a quick response to their questions& quick solutions to their problems

Weak CultureWhen you come into contact with an organization that has a strong service culture, you recognize it right away.

Figure 10-2

Turning the organizational structure upside down.

Turning the

Organizational Structure

Upside Down

The Internal Marketing Process

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• Conventional organizational structure is triangular.• In a hotel the chief

executive officer (CEO)& chief operating (COO)officer are at the peak

• The general manager isnext level, followed by department heads, supervisors, lineemployees & customers

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• The problem with a conventional organizational structure is that everyone is working for their boss.• everyone is concerned with satisfying

people abovethem and very little attention is paid to the customer

Turning the Organizational

Structure Upside Down

Turning the Organizational

Structure Upside Down

• When a company has a service culture, the organizational chart is turned upside down. • customers are now at the top of the

organization,and corporate management is at the bottom

Turning the Organizational

Structure Upside Down

• In this type of organization, everyone is working to serve the customer.

Turning the Organizational

Structure Upside Down

• In a hotel with a conventional organizational structure, if any employee makes a mistake, they hope their supervisor never finds out about it.• they may even try to cover it up because

they know iftheir supervisor finds out, they may be reprimanded

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Turning the Organizational

Structure Upside Down

• When you turn the organization upside down, everyone works to serve the guest.

Turning the Organizational

Structure Upside Down

• When you have a conventional organizational structure, everyone works to please the boss.