Internal communication is directed at internal stakeholders. Internal stakeholders include employees, management and shareholders. Many firms consider employees and customers to be the two most important assets of the business.
The profit and growth of organization are mainly the result of customer loyalty. Customer loyalty is the result of customer satisfaction. Customer satisfaction is mainly a result of value provided to customers by the business. Satisfied employees and organizational alignment, which refers to situation when employees are aligned with and internalized the values and beliefs of organization, will deliver better value to customers. This will result in enhanced customer satisfaction and customer loyalty and greater growth and profit for the business.
Since internal communication is one of the important ways to ensure organizational alignment and employee satisfaction, internal communication is of crucial importance.
Philip Kotler, a well-known marketing expert, advises that in any organization with a service component, there are three types of marketing that occurs in the organization.
Internal marketing occurs between the organization and employees.
External marketing occurs between the organization and customers. It concerns design and implementation of the marketing mix.
Interactive marketing occurs between employees and customers. Its effectiveness depends on how well employees can meet customers’ needs.
External marketing cannot occur without internal marketing which refers to motivating and educating employees to be able to meet the needs of customers through interactive marketing. Therefore, for effective marketing, all three types of marketing should be undertaken efficiently.
Print publications can be used for internal communication and include newsletters, magazines, annual reports and bulletin boards. Internal communication media can also include audiovisual media such as power point presentations, videos and audio recordings of the messages.
The combination of different audiovisual media is often used. For example, a power point presentation made by the CEO of the organization may also include a number of video or audio messages. Along with a number of audiovisual media, such presentations are amongst the most used media for interpersonal communication. It is a form of interpersonal communication media.
Interpersonal communication media refers to communication which occurs face to face. Examples of interpersonal communication media are staff meetings, interviews and training sessions.
Another example of interpersonal communication media is informal communication which is also called an organizational grapevine. An organizational grapevine refers to informal and unsupervised communication within the organization. It allows to rapidly disseminate information throughout the organization. Organizations need to use informal communication media to its advantage.