INTERNAL MARKETING AS A MOTIVATION TOOL

OF EMPLOYEES IN CROATIAN COMPANIES

Diana Plantić Tadić, PhD

Dubravko Blaće, MC

Ivana Vrhovski, prof.

We are...

We’ll talk...

You’ll hear...

Introduction

Motivation

...receive full support......interest and purpose in

working...„It is not posible to motivate an individual, rather, a situation in which individuals respond to be motivated because they choose to can be created.” (Rabey, 2001)

Goal of internal marketing

Employee motivation=

Sucess of external marketing

Existing research

Internal Marketing“ Communication or a series of processes for collaboration among company’s functions carried out so that the organization may achieve their mid- to long term goals.”- Kimura (2011, pp. 77-79)

“Marketing to employees of an organization to ensure that they are effectively carrying out desired programs and policies.“ - American Marketing Association

“Internal marketing implies all marketing activites targeted to internal users (employees) and organisation in general, with a goal of motivating employees and improving organisational climate within the organisation.”- Sommer (2005, p. 7)

“Strategy for developing connections between employees throughout the internal organisation .“ - Ballantyne (2000, p. 44)

“ Internal marketing focuses on implementing philosophy and practice of marketing on the internal market in order to hire and retain best individuals and to motivate all employees to go work in the best possible way.”- Došen (2000, p. 19)

Internal Marketing

“The internal market of employees is best motivated for service mindedness and customer oriented performance by an active, marketing-like approach, where a variety of activites are used internally in an active, marketing-like and coordinated way“.- Gronroos (1994, p. 13)

Internal Marketing

Planning similar to external marketing

- Adapted for internal market -...Market research, segmentation, goals, 4Ps...

...E-mail marketing, personal contact, internal papers, events...

Internal market is under more control than external

Internal marketing is a basically a dialogue

Two Major Problems

Management

Human factor

Study

11 marketing experts

Medium and large companies

Average 10 years experience

In-depth face to face interviews

StudyUsage and familiarity

• International• Often• Deep analysis

• Croatia• No clear plans• Low familiarity• Poorly

implemented

Management

• No unique way• Money

• Directors• Understanding• Resources

• Exceptions• Small number• Invest and

deliver• Management is

aware

Organization

• No single opinion• MKT must be

included• Synergy of

disciplines• Department

• Individual• MKT• HR

Tools

• Familiar to experts• Similar to

external MKT• Modern

technology• Personal

contact• Favourite

• Prize games• Events• Newsletters• Magazines• Social networks

Study

CONCLUSION

Management not recognizing --> slowing implementation

Important and efficient tool for better business results

Internal marketing as a discipline

will grow

Suggestions for developing IMResearch• Recognize needs• Continuosly• Focus groups and polls

Strategy and model• Set strategic goals• Other dept. help in

creation• Budgeting

Planning• Setting up projects• Precise and adapted to

target• Selecting tools

Implementation• One leader coordinates• Cooperation on all

levels• Take care of details

Evaluation• Data for next cycle• Deviations from goals• Revision if needed

ValuesEvery individual countsTransparencyCustomer-oriented

Conclusion

A situation in which individuals respond to be motivated because they choose to can be

created

Experts find it to be an effective tool for improving employee motivation and

completing business goals

Croatian companies do not implement internal marketing

Resources should be invested in internal marketing

Implementation requires a systematic approach

Conclusion

QUESTIONS?

Diana Plantić Tadić, PhD

Dubravko Blaće, MC

Ivana Vrhovski, prof.