INTERNAL MARKETING :RETAIL INDUSTRY

SUBMITTED BY

ASHISH AGGARWAL

SEAT NO - 64

INTERNAL MARKETING IN RETAIL INDUSTRY

Internal marketing (IM) is a process that occurs within a company or organization where the functional process aligns, motivates ,guides and empowers employees at all management levels to deliver a satisfying customer experience. Over past years internal marketing has been interlinked with employer brand management, and employer branding which strives to build stronger bond between the employee brand experience and customer brand experience.

Key concepts

IM functioning as a constant internal 'upskilling' process. Reconciliation of the organization’s purpose with employee behavior. Employees adapting to the core values of the organization. Motivation, restructuring and empowerment of employee attitude. Inside-out management approach. To Retain a positive customer experience throughout the business objectives

LP internal marketing practices

Loss prevention is one of the least understood functional areas in retail, LP has been transforming from a discipline ie focused on chasing shoplifters and investigating incidents, to one that salvages retailers’ bottom lines from losses caused by inefficient operations, organized retail crime, administrative snafus, compliance failures and legal liabilities. Gaining the attention of peers is of critical importance for LP in retail. LP managers can better manage their jobs and increase their effectiveness if they are involved early in the planning of events, new technology investments, and changes to store operations. Successful LP teams also need technology tools to help them document and streamline the process of identifying loss-causing events.

LP people have expertise in the retail business as a whole, with vast knowledge of supply chain, merchandising, customer service, and operations. Now LP should also learn marketing, which is important for showing their value internally. By initiating efforts to market themselves within the organization, LP professionals can seek funds, improve collaboration with peers, defend requests for resources, and take a seat when it comes to designing and planning the retail strategy.

By following three fundamental steps in marketing - educate, nurture, and closing the deal - LP can use marketing to advance their own success.

Educating – People don’t just know things of their own; they must be taught. As LP professionals have to learn about operations ,merchandising and other aspects of the business, others in retail should learn about loss prevention. LP must be proactive about “advertising” or educating the organization about the importance of LP. “Brown bag” lunches ie speaking at internal business meetings and simply demonstrating to more people about LP are all good ways to educate. While others in the organization must not run out and resort to loss prevention immediately, they will start thinking about LP and what it means to them.

Nurturing – In marketing, nurturing is the process of constantly building relationships with prospects so that they will return for seeking more information in response when they are ready to buy a product. LP can do the same by nurturing relationships with peers across the retail organization when they plan an event or invest in a technology, they will seek consultation with LP.

Regularly LP update meetings, short videos, newsletters and social media are good ways for sharing projects that are being initiated by LP and their significance to the bottom line of the company.

Closing the deal – Clarity and brevity in communication is never more important than seeking for money or resources. Investments in the right physical security and information management technologies are critical for controlling and monitoring shrink and LP professionals should ask for the technology and human resources frankly required to ensure their success. If prospects know LP through education and nurturing, it becomes easy to “sell” them when it’s time to close the deal. At this point in the process, executives and other departments should understand the value of LP. Then LP can go ahead for “the close.”

Numbers speak volumes in business and by sharing metrics showcasing what LP has implemented and what they can achieve with the proposed investment , executives will be much more inclined to the purchase of resources as an investment in support of the bottom line rather than an expense associated with a cost center. Effective numbers may be the frequency of cases investigated and resolved by the LP department, the number of loss-causing activities identified and corrected, gradual reduction in accidents, employee theft or administrative shrink and overall annual reduction in shrink. The numbers demonstrate the unquestionable value of LP to executives and the organization as a whole.

Benefits

Benefits of Internal Marketing:

encourages the internal market to perform efficiently; empowers employees and provides them accountability and responsibility; gives common understanding of the business organisation; encourages employees to offer superior service to clients by applauding their

valuable contribution in the business; helps non-marketing staff to learn and perform their tasks in a planned way; improves and enhances customer retention and individual employee development; integrates business culture, human resources management, structure, vision and

strategy with the employees' professional and social needs; creates coordination and cooperation among departments of the business. proper information flow within the organisation. proper guidance to employee evaluation of employee performance regularly.

Problems to the successful implementation of Internal Marketing

The following are the problems to the effective implementation of internal marketing.

1. Managerial incompetence in technical, interpersonal and conceptual skills are some of the blocks to the successful internal marketing.

2. Poor understanding of internal marketing concept.3. Individual and departmental conflicts makes the implementation of internal marketing

difficult.4. Rigid organizational structure in combination with bureaucratic leadership hinders

success of internal Marketing.5. Ignoring and neglecting subordinate staff.6. The tendency of ignoring employees' importance and treating them as any other tools of

the organization.7. Resistance to change. 8. Futile guarding of information against employees.