Marketing internal change

Dr Stephen DannSchool of Management, Marketing &

International Business, Australian National UniversityDecember 8, 2009

http://www.slideshare.net/stephendann

And that’s the last neat picture

Marketing

marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably

Chartered Institute of Marketing (2005)

IdentifyAnticipateSatisfy

Internal Marketing

Internal MarketingInternal marketing uses a marketing perspective for managing an organization’s human resources (George and Grönroos 1991).

Internal Market OrientationIMO involves the generation and dissemination of intelligence pertaining to the wants and needs of employees, and the design and implementation of appropriate responses to meet these wants and needs

Lings, I and Greenley, Measuring Internal Market Orientation, Journal of Service Research, Vol. 7, No. 3, 290-305 (2005), http://jsr.sagepub.com/cgi/content/abstract/7/3/290QUT e-print - http://eprints.qut.edu.au/27747/

The definition

“the adaptation and adoption of commercial marketing activities, institutions and processes as a means to induce behavioral change in a targeted audience on a temporary or permanent basis to achieve a social goal”

Dann, S “Redefining Social Marketing: Adapting and adopting contemporary commercial marketing thinking into the social marketing discipline”, Journal of Business Research, doi:10.1016/j.jbusres.2009.02.013

Why use Social marketing?

• philosophy– all strategies begin with the individual

– focus on individual behaviour

• mechanisms– interventions involve the 4 Ps

– market research

– segmentation

– competition

Interventions involve the 4 Ps

Product

Promotion

Price

Place

Solution

Information

Value

Access

The elements of the change

What you tell people about the change

What it costs the person to change

Where the change will happen

The product

Product

Idea BeliefAttitudeValue

One offOngoing

Objects

Behavior

Physical ObjectSoftware / SystemLarge amount of nothing

Implementing change

Step 1

Talk to the intended audience.Seriously, just talk.

Ask the audience about what they currently do Get them to describe it to youWhat do they like about the current behavior?

If they’re wanting to change, talk about the barriers they feel get in their way

What’s good about it?Why do they do it?

Step 2

Get ready to make them an offerSocial marketing is a deal making technique

Offer them a solution to the problem (if they’ve said there’s a

problem) a better deal (if they’re enjoying what they’re doing) something to think about (if they’re unaware)

When you make the offerBe specificBe direct Be obvious

Step 2.5: Stages of Change

Pre-contemplationNot thinking about the change or its relevance (awareness)

ContemplationThinking about and evaluating the options (education)

PreparationGathering resources for the change (training, upskilling)

ActionTrying out the new approach (help desk)

Confirmationcontinued attempts or commitment to the new process

DiClemenet, C.C., & Prochaska, J.O. (1982). Self change and therapy change of smoking behavior: A comparison of processes of change in cessation and maintenance. Addictive Behavior. &: 133-142Transtheoretical Model

Stages of behaviour changeStage Downstream Upstream

Precontemplation Mass communication Engage media, role models

Contemplation Information and education Train facilitators, engage community organisations

Preparation Facilitated actionPromised reward

Place based initiatives/ programs, competitions

Action Individual responsibility Support and facilitation, group activities

Maintenance Individual responsibility Ongoing rewards

Termination Individual responsibility Reinforce social norms

Step 3

Go back to the people from Step 1Talk to themMake them the offerSee how they react to the offerBe ready to change the offer, scrap the offer or

upgrade and supersize their social changeBuild a relationship based on being honest,

trustworthy and holding up your end of the deal

Don’t cheat

The people in the change

Innovators.

5%

13%

Earlyadopter

Earlymajority

30% 35-40%

12%

Late Majority Laggard

Adopter Categories

Innovators Believes in the cause / identifies the solution

Early Adopters Strong advocate for the cause

Early Majority Informed choice and calculated behavior

Late Majority Will try it once, but need to see real results

Laggards

Traditional set in the ways

Resistant Don’t want the offer

Chronic Know-Nothings

There’s an offer?

Grudging AcceptorDoesn’t have a choice

Conscious RejectersWell informed, well educated, aware of the benefits and costs of the activity, and have declined your offer anyway.

Cautious Super Adopters

Waits for the market to calm down, then picks up the most recent, newest and most stable version

They know what to do, so why won’t they do it?

They don’t actually know what to dowe just think/assume they do

They know what to do but not how to do it

They don’t believe the “evidence”

They don’t care – it’s someone else’s problem

They can’t – the barriers to change are too high

They don’t want to change.

(Reducing) Barriers to Adoption

Time • How long will this take?

Effort • Energy in, Garbage Out

Workstyle• What does this do to the daily work routine?

Psyche• Sense of competence

Perceived risk• psychological risk• social risk• usage risk• physical risk

Conclusion

Marketing is one means, not the means for change.

Use market research to avoid assumptions.

Identify barriers and ways to reduce them.

Accept rejection as a valid and considered response.

The (Bonus) Tool Kit

Services Gap Model

Gaps Model of Service Quality

Customer Gap:difference between customer expectations and

perceptions

Provider Gap 1 (The Knowledge Gap):not knowing what customers expect

Provider Gap 2 (The Service Design & Standards Gap):not having the right service designs and standards

Provider Gap 3 (The Service Performance Gap):not delivering to service standards

Provider Gap 4 (The Communication Gap):not matching performance to promises

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

External Communications

to CustomersGap 4ServiceDelivery

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Gaps Model of Service Quality

Zeithaml, M, Bitner, M J, Gremler D, (2008) Services Marketing, McGraw Hillhttp://www.amazon.com/Services-Marketing-Valarie-Zeithaml/dp/0073380938/ref=dp_ob_title_bk

Provider Gap 1: Not knowing what customers expect

Provider Gap 2: Not selecting the right service designs and standards

Provider Gap 3: Not delivering to service standards

Provider Gap 4: Not matching performance to promises

Customer Expectations

Customer Perceptions

Customer Gap

CustomerGap

Customer Expectations

Company Perceptions of Customer Expectations

Inadequate marketing research orientation Insufficient marketing research Research not focused on service quality Inadequate use of market research

Lack of upward communication Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management

Insufficient relationship focus Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers

Inadequate service recovery Lack of encouragement to listen to customer complaints Failure to make amends when things go wrong No appropriate recovery mechanisms in place for service failures

Provider Gap 1

Gap1

Customer-Driven Service Designs and Standards

Management Perceptions of Customer Expectations

Poor service design Unsystematic new service development process Vague, undefined service designs

Failure to connect service design to service positioning Absence of customer-driven standards

Lack of customer-driven service standards Absence of process management to focus on customer

requirements Absence of formal process for setting service quality goals

Inappropriate physical evidence and servicescape Failure to develop tangibles in line with customer expectations Servicescape design that does not meet customer and

employee needs Inadequate maintenance and updating of the servicescape

Provider Gap 2

Gap2

Service Delivery

Customer-Driven Service Designs and Standards

Deficiencies in human resource policies Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control, and teamwork

Customers who do not fulfill roles Customers who lack knowledge of their roles and responsibilities Customers who negatively impact each other

Problems with service intermediaries Channel conflict over objectives and performance Difficulty controlling quality and consistency Tension between empowerment and control

Failure to match supply and demand Failure to smooth peaks and valleys of demand Inappropriate customer mix Overreliance on price to smooth demand

Provider Gap 3

Gap3

Service Delivery

Lack of integrated services marketing communications Tendency to view each external communication as independent Not including interactive marketing in communications plan Absence of strong internal marketing program

Ineffective management of customer expectations Absence of customer expectation management through all forms of

communication Lack of adequate education for customers

Overpromising Overpromising in advertising Overpromising in personal selling Overpromising through physical evidence cues

Inadequate horizontal communications Insufficient communication between sales and operations Insufficient communication between advertising and operations Differences in policies and procedures across branches or units

External Communications to Customers

Provider Gap 4

Gap4

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Dr Stephen DannSchool of Management, Marketing & International BusinessAustralian National University

@stephendannStephen.dann@anu.edu.auhttp://www.slideshare.net/stephendann