The Marketing Book 5th Edition

Targeted at key

groups in the

company, alliance

partner companies,

and other

influencers

Internal

Marketing

Programme

Product

Price

Communications

Distribution

External

Marketing

Programme

Product

Price

Communications

Distribution

Targeted at key

customers,

segments and

niches, and

other external

influencers

Strategy

Plan

552 The Marketing Book

should be considered in building external
marketing strategies (this is one way of coping
with the strategy formulation–implementation
dichotomy we considered earlier).
The structure of the internal marketing
programme can be put into exactly the same
terms as the conventional external marketing
programme:

 The market. These are the individuals and
groups inside the organization who are our
internal customers, because without their
acceptance and commitment to the external
marketing strategy, it will not work.
 The product. At its simplest level, the ‘product’
is the external marketing plan and strategy.
However, at a deeper level the product for the
internal market is all the changes and
innovations that are needed to make the
external strategy work, including changes in
peoples’ attitudes and behaviour.
 The price. This is not our costs, but what we
are asking our internal customers to give up in
order for our external strategy to be
effectively implemented. The price may be the

opportunity cost of other projects given up, or

the costs to people of adjusting to change.

 The marketing communications. The most

tangible aspect of internal marketing is the

communications media and messages used to

inform and persuade the internal customers.

This may start with written communications

and presentations, but may end up as being

more about listening to the problems people

perceive with the new strategy, and adapting is

necessary. Ultimately, communication is a

two-way process – we know this in our

external marketing, and should not forget it in

our internal marketing.

 Distribution. This is concerned with all the ways

we have to deliver the ‘product’ and the

‘message’ to the internal customer. It may start

with meetings, workshops, committees,

internal communications vehicles and the like,

but may end up as far more concerned with

the internal processes of the organization. For

example, Ulrich (1989) has described the

practices of major US organizations like

General Electric, Marriott, DEC, the Ford

Motor Company, Honeywell and others in

Figure 21.7 Internal and external marketing strategy