Service-Profit-Chain-achieve-internal-marketing--S

1.0IntroductionNowadays,thegoalofcompaniesalmostistoofferthebestservicetocustomers,however,thefactshowsthattheservicesmanyfirmsprovidecannotsatisfyconsumersexpectations.FromU.K.MarlboroughStrategicManagementResourcessurvey(2000),75percentofcorporationsdidnotcareabouttheinternalmarketing,thusthat40percentofmarketingeffortswaswasted,whenconsumersfacetoanemployeewhohateorlackknowledgeaboutgoalsandproductsofhis/herfirm.Thereby,themajorreasonfortheseproblemiscompanieshavenotfocusoneducatingandcommunicatingwithstaffswhodirectlyprovideservicetocustomers.Whatorganizationslackisastrategy---InternalMarketing.Itisdefinedasaservicecompanyencourageandtrainitsemployeesworkingcorporatelytosupplyexcellentserviceforcustomers.Intheincreasinglycompetitivemarket,internalmarketingisanecessaryconditionwhichdevelopingandretainingemployeesbecomeskilledandenergizedtodelivercustomersatisfaction.(VareyandLewis,2000)Inthisessay,theconceptofServiceProfitChain,whichaimplementmodelforachieveinternalmarketing,willbeanalyzedandviewedasaneffectivewaytoimproveemployeessatisfaction.Moreover,SouthwestAirlines,agoodexampleusedtodiscussthesuccessfulexecutionofserviceprofitchain.Finally,ameasurementtoolcalledCustomerSatisfactionMeasurementtheoryforcheckingemployeessatisfactionwillbegiven.2.0ServiceProfitChainModelServiceProfitChainmodelisregardedasaeffectiveapproachtoachieveinternalmarketing.(Heskett,et.al.,1997)Because,ProfitChainmodelandinternalmarketinghavethesamebasiclogic(seeFigure1)whichis:Whenafirmoffersagoodenoughinternalservicesquality,employeeswillfeelingsatisfactionandmorewillingtostay.Onlysatisfactionemployeescanprovidequalityservices,thusthatgainingcustomersatisfaction.Then,repeatedpurchasebehaviorofcustomers(customerloyalty)willincreases.Ultimately,thegreatercustomerloyalty,themoreprofitthecompanycanbeobtained.(Maglio,et.al.,2010)Figure1ServiceProfitChainModel(Source:Heskettet.al.,1997)Hence,anyorganizationwanttoachievecustomersatisfaction,however,needtosatisfytheiremployeesfirst.Happystaffscanmakecustomershappy.(VareyandLewis,2000)Inanotherwords,theultimateaimofProfitChainmodelandinternalmarketingisforbetterimplementationexternalmarketing,fundamentallyincreaseexternalcustomersatisfactionaswellasfinallyenhancemarketcompetitivenessofcompany.(BerryandParasuraman,1991)Fromabovediscusscanbeknown,employeessatisfactionisthekeyofimplementationServiceProfitChainmodel.AccordingtoMCI'sspecialstudy,somemajorinternalfactorsinfluenceemployeessatisfaction(seeFigure2)whichare:company`svision,training,teamwork,rewards,organizationpoliciesandcommunication.Inthenextpart,seehowSouthwestAirlinesusesServiceProfitChainmodeltoachievehighinternalservicesquality.Figure2InternalServicesQuality(Source:Hallowell,et.al.,1996)3.0SouthwestAirlinesmanaginginternalservicequalityLibbySartain,VicePresidentofSouthwest:thekeyofSouthwest’smissionishighqualitycustomerserviceanditsvalueunquestionablydependonSouthwest’semployees,in2000HumanResourceManagementInternationalConference.(Sartein,2000)Differentfrommanycustomer-orientedcompanies,employeesinSouthwestAirlinesalwayscomefirst,ratherthancustomersarenumberone.(SouthwestAirlinesofficalhomepage,2012)Thereasonisthatthefirmhopetheiremployeesareabletocontributethesamequalityofrespect,responsivenessandwarmthtocustomers.Inshort,SouthwestAirlinesprovidesagoodinternalservicequalitytoensurethatitsstaffsofferqualityservicetocustomers.ThisstrategymakeSouthwestAirlineskeepingprofitablethroughoutitshistory.(SouthwestAirlinesofficalhomepage,2012)3.1RecruitmentMatchbetweentheenterpriseanditsemployeesisaprerequisiteforinternalmarketing,especiallythematchbetweencorporatecultureandemployeevalues.(VareyandLewis,2000)AccordingtoserviceMasterWilliamPollard,workingnotonlyinordertoaliving,peoplemaywaitforachancetorealizetheirself.Whenpeopleworksinacompanytheylove,theywillachieveextraordinaryperformance.(Millar,1997)Hence,onlychoosetherighttalentaswellasputthemintoaappropriateposition,thusthatretaingoodemployeestobetterservecustomers.Forexample,Southwesttrytheirbesttoattracttalentwhotheywant.Interestingly,differentfrommanyfirms,SouthwestAirlinesregardpeople`sattitudeasmoreimportantthanskills.Because,theybelievethatpeople`sattitudescannotbechanged.(MilesandMangold,2005)Astheresult,SouthwestAirlineshirepeopleensuretheirattitudesareconsistentwiththeorganization’svalues.Overtime,ainternalculturehavebeencreatedanditprovidesacultureorteamworksuperiorityovercompetitors.3.2TrainingandTeamworkInternalmarketingisaholisticmanagementprocesswhichrequiresstaffsordepartmentshelpingandunderstandingeachothertocompleteit.(Drake,et.al.,2005)Theroleofteamworkoninternalmarketingisreflectedinvarioussectorsoftheorganizationandemployeesbuildagoodinternalrelationshiptostrengthentheircooperation.Itcanfullymobilizeemployees`enthusiasm,professionalismandcollaborationtoimprovetheexternalservicequalityaswellasinternalservicequality.(Maglio,et.al.,2010)Moreover,trainingisthemosteffectiveapproachcanincreaseemployeesvalueandshapecorporateteamwork.(Millar,1997)Therefore,educati