3. 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
5. 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
6. Establishment of
a Service
Culture
If management expects employee attitudes
to be positive toward customers,
management must have
a positive attitude toward the customer &
employees.
7. Establishment of
a Service
Culture
Too often, organizations hire trainers to
come in for
a day to get their customer-contact
employees excited about providing high-
quality customer service.
8. 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
10. 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.
11. 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
12. 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.
13. 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.
14. 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
15. 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
19. 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
21. 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
22. Weak Culture
When they come up with a
solution, they must get a
supervisor’s permission before
applying it.
23. Weak Culture
Supervisors, in turn, may feel the
need to pass the responsibility
upward.
• during the decision process, the
guest is kept waiting
24. 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
25. Weak Culture
When you come into contact
with an organization that has a
strong service culture, you
recognize it right away.
26. Figure 10-2
Turning the organizational structure upside down.
Turning the
Organizational Structure
Upside Down
The Internal Marketing Process
tab
27. • Conventional organizational structure is
triangular.
• In a hotel the chief
executive officer (CEO)
& chief operating (COO)
officer are at the peak
• The general manager is
next level, followed by department heads,
supervisors, line
employees & customers
28. tab
• The problem with a conventional
organizational structure is that
everyone is working for their boss.
• everyone is concerned with satisfying
people above
them and very little attention is paid to the
customer
Turning the
Organizational
Structure Upside
Down
29. 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
31. 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 if
their supervisor finds out, they may be
reprimanded
tab