ENDOMARKETING

INDICE

Introduction ...................................................................................................................... 2
1. Definition: What is Internal Marketing? ................................................................... 3
2. Internal marketing according to different authors ................................................... 3
3. Historical evolution of internal marketing ................................................................ 4
4. Comparison of the components of General and Internal Marketing ....................... 5
4.1. Customer - Worker ............................................................................................ 5
4.2. Product - Enterprise ........................................................................................... 5
4.3. Sales techniques – Internal Communication ..................................................... 6
4.4. Sales Force – Management Team ...................................................................... 6
4.5. Objective – Increase motivation and production .............................................. 6
5. Main models of Endomarketing ................................................................................ 7
5.1. Berry’s Model ..................................................................................................... 7
5.2. Grönroos’s Model .............................................................................................. 7
5.3. Rafiq and Ahmed’s Model.................................................................................. 8
6. Endomarketing and its relation with the external marketing .................................. 9
7. Cases of Internal Marketing Applications ............................................................... 11
7.1. Apple ................................................................................................................ 11
7.2. Dell ................................................................................................................... 11
7.3. Eva Pharma ...................................................................................................... 11
8. Conclusion ............................................................................................................... 12
9. References ............................................................................................................... 13

Inglés Técnico I 1
Introduction

Nowadays, companies are forced to look for new ways to increase their
productivity and performance, which is why over time it has been discovered that
in addition to external marketing, marketing within organizations is a key factor to
improve the performance and productivity.

With regard to endomarketing, one could say that it is the set of strategies and
actions that are planned and executed within organizations in order to encourage
workers to be more productive.

Also, this would be manifested in the good quality of customer service, a good
perception of the consumer and creating an image of prestige of the company.

What is important here is that the worker must recognize that he is a key player
in the organization, it is not enough to just make him feel part of the company. If
this is the case, the proper execution of the endomarketing will result in greater
benefits and better results for the organization.

In the present work, we will try to clarify the issues regarding internal marketing,
as well as expose some examples of what would be endomarketing applied in
well-known companies.

The first part will approach a theoretical framework clarifying the basic concepts
that relate to endomarketing, while the second will expose cases of how
endomarketing is applied in companies such as Dell, Apple and Eva Pharma.

Inglés Técnico I 2
1. Definition: What is Internal Marketing?

It is named Endomarketing or Internal Marketing to the strategy of treat

employees as “internal customers” who must be convinced of a company's
vision and worth just as aggressively as “external customers.”

The goal of internal marketing is to align every aspect of a company’s internal

operations to ensure they are as capable as possible of providing value to
customers. If a company can operate in a coordinated and standardized way,
that company can provide a more consistent experience to their customers.

Internal marketing is based on the idea that customers’ attitudes toward a

company are based on their entire experience with that company, and not
just their experience with the company’s products.

Any time a customer interacts with an employee, it affects their overall

satisfaction. Therefore, customer satisfaction is deeply dependent on the
performance of a company's staff.

2. Internal marketing according to different authors

 Leonard L. Berry (1981): The interpretation of the internal marketing of

Berry is based in the perspective of treating employees as customers,
which can lead to changes in attitude among workers and positively affect
the consumer satisfaction.

 Christian Gronroos (1990): Defines internal marketing as an instrumental

strategy of behavior to develop a "mental state" that allow efficiency in
customer service and relationship building commercial.

 George (1990): According to George, endomarketing is a philosophy of

human resource management based on the marketing approach.

 Claudio L. Soriano (1993): Internal marketing is a set of methods of

management of the personal-organization relationship that aims to
achieve that the staff voluntarily adopts the orientation towards quality of
the service, necessary to achieve high, consistent and stable levels of
quality, both internal and external, in all the services of the company.

 Maria Cristina Bohnenberger (2005): Indicates that most of the concepts

coincide in which Endomarketing is a perspective of joint management
between internal and external marketing to seek the satisfaction of the
external client.

Inglés Técnico I 3
 In other words, it is a management philosophy that aims to an effective
action in the external environment of the organization, through an
adequate work environment that respects the needs and desires of the
employees.

3. Historical evolution of internal marketing

Endomarketing (internal marketing) is a recent concept, the first studies date

of a few decades ago and these were motivated by the interest in improving
people management and customer service. In this way, they coincided with
a competition that was acquiring an even greater international perspective.

In some cases, empirical treatment encouraged different interpretations and

conceptualizations on the subject and, consequently, different applications in
the form of methodologies development with some points in common such
as, for example, employee satisfaction and the client.

Grönroos in 1990 marked another important point when he described the

objective of Endomarketing: “Motivate and raise awareness among
employees about the importance of the external client”, Grönroos defends
that the satisfaction of the external client is realized through the employees
and demands greater attention and conscience on them among the
managers of the organization. On the other hand, Flipo (1986) pointed out
the dependence that Endomarketing establishes with marketing.

In 1991, Berry and Parasuraman presented the proposal to practice internal

marketing before external marketing, especially in companies of services.
The coordination of the process is studied for the first time by Rafiq and
Ahmed in 1993.

In 2005, Bohnenberger points out that Endomarketing is an interdisciplinary

topic both in the academic environment and in the business environment. In
the academic field are studies prepared by experts in marketing, human
resources and public relations, in this case with minor intensity.

Everyone agrees that the members of a company have a considerable

influence on the generation of perceived value by the external client,
regardless of the job position they perform or the place they occupy, which
will impact in the profitability of companies.

From this principle emerges the idea of seeking competitive advantages

within the organization through a series of programs and actions that
enhance human resources, both for your own well-being as for the growth of
the company.

Inglés Técnico I 4
4. Comparison of the components of General and Internal
Marketing
In order to establish the comparison between the components of internal and
general marketing, we can make the following similarities.

GENERAL MARKETING INTERNAL MARKETING

Customer Worker
Product Enterprise
Sales Techniques Internal Communication
Sales Force Management Team
Increase motivation and
Objective
production

4.1. Customer - Worker

The employee is the internal customer of the company; whose wishes,
concerns, needs, etc., should be known and considered if it is desired to
avoid the failure of the entire strategy. It is important to know their defects
and weaknesses to transform them into advantages and opportunities.
With this interlocutor you have to negotiate and reach agreements.

This client must sell the concept of company that we have or want and
with it we must count on its future development. For the knowledge of the
"internal client", it will be used socio-labor research techniques,
analogous to those used by general marketing.

4.2. Product - Enterprise

The product that we are going to offer to our internal client is the
company, which has objectives to achieve to ensure its survival and with
an organization, plans and policies in which all its components must
participate to be effective.

The final characteristics of this product "fabricated" by all the members of

the company will be better conditions of work, greater participation, a
better working environment, greater integration and motivation, more
productivity and as a result, generate an intrinsic value of our product,
whose benefit will affect the entire market.

Inglés Técnico I 5
4.3. Sales techniques – Internal Communication
The sales technique will be based on internal communication and staff
participation. The downward internal communication will allow you to
"sell" the idea of the company you want to establish. The upward
communication will allow knowing the opinion of the internal market,
detect the coherence between the message transmitted and the
message received in order to quantify the deviations and implement the
appropriate modifications of the internal sales plan.

The participation through work groups or quality circles will allow the final
product to be perfected, both in terms of the material and the integrating
component that constitutes the body of the company.

4.4. Sales Force – Management Team

In this case, they are the managers and intermediate managers of the
company. The role of senior management is fundamental, since in the
absence of a participatory management model, it would be difficult to
apply an internal marketing strategy.

4.5. Objective – Increase motivation and production

The final objective pursued by the internal marketing is to increase the
level of motivation of the "internal customers" in order to improve the
productivity.

Inglés Técnico I 6
5. Main models of Endomarketing

5.1. Berry’s Model

Berry (1981) is one of the pioneers in calling employees “Internal Clients”.
For him, internal marketing involves recognizing the employee as a client,
developing them by a dynamic of interaction and growth at work, showing
evidences in the satisfaction of the employees and the development of
attitudes oriented to the external client.

According to the model, to achieve complete satisfaction at both the

internal and external, it is imperative to focus the tasks as a product,
looking for a way to involve and involve employees.

The following table describes the elements that interact in a process of

Endomarketing.

5.2. Grönroos’s Model

The model presented by Grönroos presents a management support
structure related to the employee that would allow the employee to know
the importance of its function, maintaining it motivated to generate
satisfaction.

Starting from there this model proposes two trends related to the same
point, the increase in profitability. One that leads to interactive marketing
generating an increase in sales and another corresponding to the quality
of service and customer satisfaction

Inglés Técnico I 7
5.3. Rafiq and Ahmed’s Model
The authors Rafiq and Ahmed (2000) present a model based on the
models of Berry and Grönroos, making a connection between the
elements that make up the internal marketing and its relationship with the
satisfaction of the internal client. According to these authors, the
motivation of employees is achieved through the activities developed by
the organization, this motivation, together with empowerment, can
positively influence job satisfaction, which is linked to customer
orientation and generates the satisfaction of the employee-consumer.

The other element that is visualized is the coordination and integration of

the functions which can influence the quality of the services and the
satisfaction of the client. At the center of the model is customer
orientation, that reflects the application of marketing theory to achieve
external customer satisfaction.

One of the positive points of the model is the reference to empowerment,

which refers to front-line employees, who need greater autonomy to
optimally serve the customer.

Inglés Técnico I 8
6. Endomarketing and its relation with the external marketing

As we have been mentioning, the Endomarketing is about improving the

relationship with and the satisfaction of external customers on the basis of
improving the relationship with the internal customer. Applying marketing
techniques to attract and retain better talents means to conceive a new
dimension of the management of Human Resources.

Companies must adopt the philosophy of strategic management to

manage its main resource, workers, but from the perspective of marketing.
This will leave behind traditional management, because not only seeks to
attract, encourage and retain the internal customer, providing a product
that meets your needs and expectations, but for this the aim is also to
positively impact the external client and, in consequence, generate a
competitive advantage for the company.

The internalization of the organizational culture with service orientation the

customer is fundamental. For this, communication is a valuable
instrument, as it clearly conveys the importance of total satisfaction of
consumers.

Inglés Técnico I 9
There is a model suggested by Bansal, Mendelson and Sharman that
presents the relationship between internal marketing activities and their
effects on the external marketing. The general line of construction of the
model is specified with phrases like this: “With satisfied employees we
have clients satisfied”. For the authors, the internal commitment of the
employees, the satisfaction at work and trust in management are the main
elements to achieve, in the end, the loyalty of the client. The three
components can be achieved from human resource management
practices.

Inglés Técnico I 10
7. Cases of Internal Marketing Applications

7.1. Apple
Apple is known for its unique internal marketing practices. Customers of
Apple stores are known to have a unique customer experience. This
unique experience is attributed heavily to Apple employees, who go
through intensive training to deliver this unique customer experience.

All Apple employees go through a two-day training where each employee

carries a Credo Card including tips on how to become an Apple brand
(Ryan, 2010). They are trained to consider every customer encounter as
a chance to market the essence of the Apple brand identity. The training
contains some technical information, but the majority is about how to
interact with customers and market the Apple personality.

7.2. Dell
Dell realized that employees are the source of company growth. They
assert that “the greatest threat to Dell wouldn’t come from a competitor;
it would come from our people” (Dell, 1999). Dell considers their
employees as co-owners.

They give them the authority and provide all the tools needed to achieve
their goals. Further, employees are given the chance to question top
management through their annual “management pay up day” (Schmid,
2003). These employee engagement tools are what help Dell ensure a
long-lasting customer relationship with its employees and customers as
well.

7.3. Eva Pharma

Eva Pharma is one of the few pharmaceutical companies in Egypt that
have a marketing department that work on developing and executing
marketing strategies. Most marketing departments in pharmaceutical
companies are sales oriented as opposed to being marketing oriented.

The strength of Eva Pharma is not only in their external marketing with
their customers, but also in their unique internal marketing practices.
They have a strong and unique corporate culture that is felt when one
deals with any Eva Pharma employee.

Inglés Técnico I 11
 This is realized by the following:
 Company values are communicated in various places such as
website, business cards and across all stationary
 All employees are invited for any meeting, which makes all people
aware about what others are doing.
 All employees go through a training program throughout their
advancement and career at the company.

These tools made Eva Pharma employees have a strong loyalty and
commitment to their organization.

8. Conclusion

Applying endomarketing means to treat workers as costumers of the

company, in this way the company creates strategies to keep them
satisfied.

Endomarketing has become a very important activity for companies, as we

have seen, it allows us to improve the quality of the service and the product
through our products.

Also, it allows us to maintain the motivation of the collaborators, which

positively impacts productivity and maintains the fidelity of the
collaborators towards the company being these the main resource.

The companies that provide services must take into account the
endomarketing to enhance their image in front of the customer and
differentiating themselves from the competition, even more when they are
in the peruvian market, that is known to be competitive and in which the
service businesses are the ones that predominate.

Inglés Técnico I 12
9. References

Alvarado, S. (2008). Plan de marketing interno. Obtenido de

https://es.scribd.com/document/266471413/marketinginterno-doc

Davila Sarmiento, A., & Velasco Duarte, A. (2013). La satisfacción del cliente
interno a través del endomarketing. Bogotá.

Farias, S. A. (2010). Internal Marketing (IM): a literature review and research

propositions for service excellence. Vitoria, Brasil: FUCAPE Business School.

NeoAttack. (s.f.). Marketing interno todo lo que necesitas saber. Obtenido de

https://neoattack.com/marketing-interno-todo-lo-que-necesitas-saber/

Regalado, O., Allpacca, R., Baca , L., & Gerónimo , M. (2011). Endomárketing:
estratégias de relación con el cliente interno. Lima: ESAN.

Schools, M. (s.f.). Internal Marketing. Obtenido de http://www.marketing-

schools.org/types-of-marketing/internal-marketing.html

Shamma, H. M. (2012). Exploring internal marketing applications: Case of egypt.

Obtenido de Journal of Marketing Development and Competitiveness:
https://search.proquest.com/docview/1315304130?accountid=12268

Inglés Técnico I 13