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Description of Catalina Rose Bay

Discuss about the Report for Internal Marketing in Restaurant.

The purpose of this study is to analyze the business problems in restaurant. In this study, the problems of internal marketing will be analyzed. Internal marketing refers to the process of aligning the functional process in order to satisfy the consumers. Organizations those communicate with the consumers directly, needs to strengthen their internal marketing in order to satisfy the consumers’ experience (Huang & Rundle-Thiele, 2015). This study will investigate the issues that a restaurant can face while implementing internal marketing strategy. In this study, the chosen organization is Catalina Rose Bay, which is a reputed restaurant of Australia.

Catalina Rose Bay is situated at edge of Sydney’s Rose Bay. The restaurant serves exceptional foods like seafood. The aim of the company is to deliver quality food and service to the customers. It is one of the top rated restaurants of the country. The setting of the restaurant is attractive and customers prefer it because of its location and peaceful ambiance.

In service-based industry, the employees are solely responsible to communicate with the consumers. Therefore, all level of employees should have proper understanding of company’s marketing movements (Hollensen, 2015). In Catalina Rose Bay, the employees should have good product knowledge in order to communicate with the consumers. Apart from that, they should have good knowledge of consumers’ food preference in order to improve the service quality even better. Here, the need of internal marketing occurs, where the company needs to promote the offerings within the organization. In case of Catalina Rose Bay, the company needs to improve their training and development process in order to increase satisfaction level of consumers (Chow, Lai & Loi, 2015). Currently, employees are facing challenges when dealing with the consumers. Therefore, it is important to identify the issues internal marketing strategy in order to improve customer satisfaction level.       

Internal marketing is the process in which an organization promotes their product within the organization. The reason behind such marketing movement is to educate the internal stakeholders regarding the products and services that the organization provides to the external stakeholders such as customers (George, 2015). In this study, the identified problem is that the company is not able to educate the employees regarding the products and services. Thus, it can be said that the internal marketing strategy of the company needs to be improved. Apart from that, the employees of the organization need to understand the way in which the company performs marketing activities (Yang, 2015). For example, the company is giving priority to the seafood and therefore, employees should have adequate knowledge about those products in order to deliver accurate information to the consumers. In order to investigate the research problem, qualitative and quantitative design will be chosen. In quantitative method, a survey process will be conducted with the employees (Lee, Chen & Lee, 2015). In order to conduct the qualitative study, interview session with the managers of Catalina Rose Bay will be conducted.          

Research Problem

The research questions are as follows

  • How Catalina Rose Bay conducts internal marketing for improving employee satisfaction?
  • What are the challenges that Catalina Rose Bay is facing while conducting internal marketing?
  • How Catalina Rose Bay can overcome the challenges of internal marketing?

This section of the study will reflect relevant literature regarding the study. Here, the concepts of the research variables will be emphasized. Moreover, relevant theories and models will be evaluated in order to enhance knowledge regarding the study topic (Alshurideh, Alhadid & Barween, 2015). Apart from that, relation between two research variables will be described in this section. In current business environment, service quality is becoming the most important factor for the service-based organizations like bank and restaurants. Therefore, organizations are strengthening knowledge base in order to handle consumers’ quarries (Caldwell, Licona & Floyd, 2015). Internal marketing helps to improve knowledge of all level of employees within the organization. Therefore, employees can assist the consumers, which play a big role in customer satisfaction enhancement.  

Internal marketing refers to the process promoting the products within the organization. In other words, it refers to the process of educating the workforce regarding the products and services of the organization (Kaurav, 2015). It helps the organization to improve knowledge of all level of employees. In case of restaurant, there are different job roles like front desk, human resources, sales & marketing and kitchen employees. In order to improve the service quality better, it is important to educate all the employees regarding products and services (Scheidler, Schons & Spanjol, 2016). In service-based industry, communication between consumers and employees is the most important factor. Therefore, employees should have the product knowledge, as they are solely responsible for communicating with the consumers. In order to engage an internal marketing strategy, service-based industries implement training process for the employees.  

Customer satisfaction refers to the process of measurement of how products and services meet expectation of the consumers. In service-based industry, employees are responsible to communicate with the consumers directly (Roshani, Zad & Bijarchi, 2015). Therefore, employees should have adequate knowledge regarding the product and process that the company has adopted. In restaurant, employees need to assists the customers to ensure that the customers are satisfied (Chowdhury, Chowdhury & Imran, 2015). The market is highly competitive, and in this competitive era, it is highly important to satisfy the consumers with good service. The employees should behave with the customers properly.   

The SERVQUAL Model

In internal marketing, an organization educates the employees to improve their customer service process. In this process, an organization considers their employees as the internal consumers. Therefore, measuring employees’ satisfaction level helps the organization to measure the overall service quality (Bansal & Taylor, 2015). Through this model, it is possible to measure the service quality of the employees. The marketing strategy could be anything, but an organization needs to measure the level of satisfaction in order to improve organizational strategy. Following is the evaluation of this model in relation with the internal marketing of a restaurant.

Describing the research problem and analysis process

In this model, there are four gaps, which help an organization to analyze effectiveness of the organizational strategy (Huang & Rundle-Thiele, 2015). Through these gaps, it is possible to identify the satisfaction level of the customers in an effective manner. Following are the gaps of the model in relation with restaurant industry have been evaluated.

Gap 1: Gap between customer expectation and company’s perception

In this phase, the gap between customer expectation and company’s perception can be evaluated. In order to satisfy the consumers, it is highly important to understand customers’ expectation (Hollensen, 2015). The company should perceive the customers’ expectation in primary stage. If an organization fails to perceive the consumers’ expectation level, then it will be difficult for the company to satisfy the consumers (Joung et al., 2015). 

Gap 2: Gap between designed service quality and customer expectation

An organization design the service quality benchmark based on the consumers’ expectation. This dimension evaluates the gap between the service quality of the company and consumers’ expectation (Chow, Lai & Loi, 2015). The product or service should meet the consumers’ expectation. In internal marketing, an organization evaluates the expectation level of the employees regarding the products and services (Chin-Feng & Yu-Ying, 2010).       

Gap 3: Gap between service design and delivered service

Now, the designed service may vary from the actual delivered service. It can have both positive and negative on the company’s reputation (George, 2015). This phase of this model helps an organization to improve the product and service quality.

Gap 4: Gap between service quality and external communication

External communication is the most important factor in service based industry. Customers rely on the statements that employees of an organization provide. Therefore, this gap measures the service and product quality and external communication of an organization (Yang, 2015). It further helps to evaluate employees’ knowledge regarding products and services of the organization.   

Gap 5: Gap between customers’ expectation and experience

This is the final phase of this model, where the gap between customers’ expectation and experiences can be measured (Lee, Chen & Lee, 2015). It helps an organization to continuously improve the product and service quality.

Kano’s Customer Satisfaction model

Kano model helps to classify the consumers’ preferences into five different categories. Through this model, the satisfaction level of the consumers can be determined. Moreover, it helps to understand the factors, which affect satisfaction level (Alshurideh, Alhadid & Barween, 2015). Following are the categories of Kano model have been evaluated. Due to low consumers’ expectation knowledge, 67% of the restaurants fail within first three years.

Research Questions

Must-be quality: There are certain attributes of the product, which are taken for granted. Consumers need those attributes as the basic. For example, consumers think that employees should have adequate knowledge about products and services (Caldwell, Licona & Floyd, 2015). If consumers do not have the same, then it will affect consumers’ satisfaction negatively. However, having such knowledge will not increase consumers’ satisfaction level (Mamoun et al., 2013).

One-dimensional Quality: There are certain attributes that can satisfy the consumers. On the other hand, absence of these attributes can dissatisfy the consumers as well (Kaurav, 2015). For example, a low food quality in restaurant industry can dissatisfy the consumers and good food quality can satisfy the consumers in an effective manner.

Attractive Quality: These are the attributes, which can satisfy the consumers, but absence of these attributes does not have any impact. For example, if a restaurant is providing online ordering facility to the consumers (Scheidler, Schons & Spanjol, 2016). This is an unexpected service, which satisfies the consumers, but absence of this facility would not dissatisfy the consumers.

Indifferent Quality: The attributes, which don’t have any impact of consumers’ satisfaction level is known as indifferent quality (Roshani, Zad & Bijarchi, 2015). For example, a restaurant is washing the dishes with a high quality dishwasher. However, it will not affect the satisfaction level of the consumer, because they are unaware of this particular activity (Vivienne et al., 2005).

Reverse Quality: There are certain attributes, which may result dissatisfaction for high degree of improvement. For instance, a range of food product in a restaurant can satisfy a group of customers (Chowdhury, Chowdhury & Imran, 2015). However, it may dissatisfy the consumers with low food preference.        

Internal marketing has high impact on the customers’ satisfaction level. After conducting the literature review, it has been identified that internal marketing enhance employees’ knowledge regarding the product and service features. The employees are solely responsible to communicate with the consumers (Bansal & Taylor, 2015). On the top of it, consumers’ satisfaction can be increase through good communication between consumers and employees. Therefore, it can be said that internal marketing directly affects the customer satisfaction for the service-based industry (Ennew, Binks & Chiplin, 2015).

In this literature, the internal marketing and customer satisfaction has been evaluated. However, there is no evaluation of employee training and development. In order to understand the drawbacks of internal marketing strategy, it is highly important to review the training and development process that the organization has adopted.

Literature review

After conducting the literature review, it has been identified that service-based industry needs to educate the employees regarding the product and processes. If employees are aware of the product quality, then only they would be able to communicate with the consumers properly. Through the SERVQUAL Model, different gaps of service quality have been evaluated. On the other hand, evaluation of Kano model helps to understand the attributes of products or services that may affect satisfaction level of the consumers.

Introduction

In order to answer the framed research questions, it is highly important to choose appropriate research methods. In this manner, it will be possible to conduct the research in appropriate manner (Smith, 2015). The selection of research methods depends on the study topic. Here, the study is based on internal marketing of Catalina Rose Bay. Therefore, the primary research would be conducted in order to address all the research questions.

In order to gather relevant data for the study, it is highly important to choose the appropriate research philosophy. There are three kinds of research philosophies such as positivism, realism and Interpretivism. Positivism is a philosophy, which helps to accumulate factual data regarding the topic (Bryman & Bell, 2015). In order to conduct primary study, it is highly important to gather fact based data. It helps to analyze the numeric set of information in an efficient manner.  On the other hand, Interpretivism helps to understand the social cause behind the study (Bryman, 2015). This method is appropriate for secondary research. In this method, it is possible to accumulate socially constructed data from authentic journals and press release. The realism philosophy is the mixed approach in which factual and socially constructed data can be accumulated. For example, both primary and secondary research can be done simultaneously. However, this process is time consuming and therefore, this process is not appropriate for this study. 

In this study, positivism philosophy will be chosen. This study is based on primary research and therefore, gathering factual data is the most effective process. Through this philosophy, it would be possible to understand the internal marketing strategies of the chosen organization. Therefore, selection of this research philosophy will be appropriate for this study (Flick, 2015). While gathering factual data, qualitative and quantitative research designs will be applied. Both of these processes would help to enhance knowledge regarding the study topic.  

Research approach helps to evaluate the research topic with the most relevant models and theories. Two types of approaches are deductive and inductive. In case of deductive approach, it is possible to evaluate the existing models and theories. In this study, the importance of models and theory is unavoidable (Hair, 2015). It will help to represent viewpoint of different authors. Therefore, a critical evaluation of existing models and theories will help to identify the issues with internal marketing. On the other hand, inductive approach helps to evaluate new theories and models. In primary research process, it would be difficult to derive new theories and models (Eriksson & Kovalainen, 2015). However, for secondary methods, this is the most appropriate method. Through this process, it is possible to assess arguments of previous researchers.

Here, deductive approach will be selected. Through this approach, it would be possible to evaluate the existing models and theories related to internal marketing and customer satisfaction. The process of inductive approach is time consuming and therefore, the selection of research approach is appropriate in this study (Hartas, 2015). In this study, it is highly important to understand the research variables properly. Evaluating models and theories will enhance overall knowledge of the study topic. Apart from that, understanding the research variables would help to answer the framed research questions in section one.

In order to understand the study topic properly, it is highly important to select the appropriate research purpose. There are three research purposes such as explanatory, exploratory and descriptive. Explanatory approach helps to link between the research variables. For example, it will be important to understand the relationship between internal marketing and customer satisfaction (Hoy & Adams, 2015). Without understanding the relation between these two variables, it will be not possible to justify the research questions. Exploratory approach helps to understand the research topic in an appropriate manner. Now, the research topic can be a business case, or can be a social topic. Understanding the topic properly would help to adopt accurate research design.  Descriptive approach describes the research topic, which increase quality of the research outcome. Through this purpose, it will be possible to discuss on the research topic elaborative.   

Here, the selected research approach will be explanatory. It will help to build relation between internal marketing and customer satisfaction in an effective manner. Therefore, it would be easy to understand how internal marketing helps to increase customer satisfaction level (Smith, 2015). Moreover, this process will also help to address all the research questions in appropriate manner. For example, the first research question is to assess the internal marketing strategy of the company. Here, it is important to understand the concept of internal marketing in order to assess the organizational strategy.

An appropriate research strategy helps to evaluate data in an appropriate manner. In order to obtain the research outcome, it is highly important to analyze the data properly. There are several research strategies such as focus group, case study analysis, survey and interview. The type of research strategy depends on the research design (Bryman & Bell, 2015). In case of primary study, the appropriate strategies would be interview and survey. On the other hand, in secondary study, case study analysis would be the most appropriate research strategy.   

Here, the study is based on primary study. Therefore, survey and interview will be chosen as the research strategy. This research strategy would help to gather relevant information regarding the study (Flick, 2015). Through the survey, it will be possible to understand the employees’ perception regarding the internal marketing. Through the interview process, it will be possible to communicate with the managers of the company. 

In this study, both primary and secondary data collection process will be applied. In primary data collection process, qualitative and quantitative data collection technique will be conducted. In quantitative study, survey process will be conducted. Through this survey process, it will be possible to understand how the organization is educating the employees regarding the organizational process (Hair, 2015). This will be a survey based data collection process. The gathered information in this process can be manipulated. Respondents may select the answers randomly. Therefore, a vast range of respondents will be invited to improve authenticity of the data.  On the other hand, interview session will be arranged in order to conduct qualitative data collection process. In this process, it will be possible to conduct interview session with the managers of the company. However, the managers may avoid any personal or core management information due to confidentiality.   

There are two types of sampling methods such as probability and non-probability. In this study, both sampling methods will be selected. The probability sampling method will help to select population for quantitative study (Eriksson & Kovalainen, 2015). This is a random population selection method, where population will be selected randomly. On the other hand, non-probability sampling would help to select sample for qualitative study. In which study, 100 employees of Catalina Rose Bay will be selected for quantitative research. The response rate would be 50 employees and 4 managers of the company. On the other hand, 4 managers of Catalina Rose Bay will be selected for qualitative research.       

In order to analyze accumulated data, efficient data analysis tools will be implemented. There are two types of data collection process will be applied in this study such as qualitative and quantitative (Hartas, 2015). Statistical tools will be chosen for conducting the quantitative study. On the other hand, case study analysis process will be applied in order to analyze the qualitative data. Apart from that, efficient software will be chosen for improving the quality of the research outcome. An online survey process will be applied in order to gather range of data from the targeted population. In this process, Microsoft Excel will be the most efficient tool, which will help to derive mean, median, mode and standard deviation value from the quantitative data. Secondary data will also be gathered in order to construct the literature review. Here, authentic sources such as journals, books and press releases will be accessed.

In this research design, the data will be gathered through primary data collection process. Now, in primary process, two types of respondents have been selected. The quantitative respondents will participate in a survey and it will be unethical to force the respondents to share their responses. The respondents should have the flexibility while participating. In research ethics, a research only can ask the respondents to share their viewpoint. However, forcing the respondents for giving their responses is not ethical (Hoy & Adams, 2015). Apart from that, the data gathered in this method, should be kept protected. Publishing the responses for commercial purpose is a legal offence. However, in order to conduct the qualitative study, a researcher needs to share the responses with the qualitative respondents. It helps to improve the quality of research outcome even better. When it comes to qualitative study, respondents may not agree to answer each research question. However, the quality of a research completely depends on factual data. This is the most important ethical dilemma that prevents a researcher from conducting research. Here, both qualitative and quantitative methods will be applied. Therefore, the discussed ethical issues will occur during the study.

In order to avoid the discussed ethical issue, proper measures will be applied in this study. The gathered information will be kept confidential in order to comply with the data protection act. Apart from that, the respondents will be free to participate in survey and interview process. There will be no external forces will be applied for attracting the respondents. In this study, ethics form will be provided to the respondents in order to deal with the ethical considerations. In order to handle ethical issues related with data protection act, proper legal measures will be taken.

Reference list

Alshurideh, M., Alhadid, A. Y., & Barween, A. (2015). The effect of internal marketing on organizational citizenship behavior an applicable study on the University of Jordan employees. International Journal of Marketing Studies,7(1), 138

Bansal, H. S., & Taylor, S. F. (2015). Beyond service quality and customer satisfaction: investigating additional antecedents of service provider switching intentions. In Proceedings of the 1999 Academy of Marketing Science (AMS) Annual Conference (pp. 75-82). Springer International Publishing

Bryman, A. (2015). Social research methods. Oxford university press.

Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

Caldwell, C., Licona, B., & Floyd, L. A. (2015). Internal Marketing to Achieve Competitive Advantage. International Business and Management, 10(1), 1-8.

Chin-Feng Lin & Yu-Ying Lin (2010) Internal and External Marketing for Exotic Restaurants, Journal of Foodservice Business Research, 13:3, 193-216, DOI: 10.1080/15378020.2010.500243

Chow, C. W., Lai, J. Y., & Loi, R. (2015). Motivation of travel agents' customer service behavior and organizational citizenship behavior: The role of leader-member exchange and internal marketing orientation. Tourism Management, 48, 362-369

Chowdhury, A.H., Chowdhury, M.S.A. & Imran, M., 2015. Branding strategies for service firms-a study on the selected Internet Service Providers (ISPs) in Bangladesh. Asian Business Review, 2(1), pp.47-53.

Ennew, C. T., Binks, M. R., & Chiplin, B. (2015). Customer Satisfaction and Customer Retention: An Examination of Small Businesses and Their Banks in the UK. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 188-192). Springer International Publishing

Eriksson, P., & Kovalainen, A. (2015). Qualitative Methods in Business Research: A Practical Guide to Social Research. Sage.

Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research project. Sage.

George, W. R. (2015). Internal marketing for retailers: The junior executive employee. In Proceedings of the 1984 Academy of Marketing Science (AMS) Annual Conference (pp. 322-325). Springer International Publishing

Hair, J. F. (2015). Essentials of business research methods. ME Sharpe.

Hartas, D. (Ed.). (2015). Educational research and inquiry: Qualitative and quantitative approaches. Bloomsbury Publishing.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education

Hoy, W. K., & Adams, C. M. (2015). Quantitative research in education: A primer. Sage Publications.

Huang, Y. T., & Rundle-Thiele, S. (2015). A holistic management tool for measuring internal marketing activities. Journal of Services Marketing,29(6/7), 571-584

Joung, H. W., Goh, B. K., Huffman, L., Yuan, J. J., & Surles, J. (2015). Investigating relationships between internal marketing practices and employee organizational commitment in the foodservice industry.International Journal of Contemporary Hospitality Management, 27(7), 1618-1640.

Kaurav, R.P.S., 2015. Assessing impact of internal marketing on business performance. European Journal of Tourism Research, 10, p.136.

Lee, W. I., Chen, C. C., & Lee, C. C. (2015, August). The relationship between internal marketing orientation, employee commitment, charismatic leadership and performance. In Proceedings of the 17th International Conference on Electronic Commerce 2015 (p. 1). ACM

Mamoun N. Akroush Amjad A. Abu-ElSamen Ghazi A. Samawi Abdelhadi L. Odetallah, (2013),"Internal marketing and service quality in restaurants", Marketing Intelligence & Planning, Vol. 31 Iss 4 pp. 304 – 336

Roshani, S., Zad, M. R. K., & Bijarchi, M. H. (2015). The investigation of the effects of internal marketing on the services quality emphasizing the inter madiate role of organizational citizenship behaviors (case study of Esfarayen city banks). Journal of Scientific Research and Development, 2(3), 203-209.

Scheidler, S., Schons, L. M., & Spanjol, J. (2016). Internal Marketing of Corporate Social Responsibility (CSR) Initiatives: CSR Portfolio Effects on Employee Perceptions of Corporate Hypocrisy, Attitudes, and Turnover. InRediscovering the Essentiality of Marketing (pp. 553-554). Springer International Publishing.

Smith, J. A. (Ed.). (2015). Qualitative psychology: A practical guide to research methods. Sage.

Vivienne J. Wildes PhD & Sara C. Parks PhD (2005) Internal Service Quality, International Journal of Hospitality & Tourism Administration, 6:2, 1-27, DOI: 10.1300/J149v06n02_01

Yang, J. T. (2015). Effect of internal marketing on knowledge sharing and organisational effectiveness in the hotel industry. Total Quality Management & Business Excellence, 26(1-2), 76-92

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