Topic: BusinessDecision Making

Last updated: June 14, 2019

According to Kotler and Armstrong (2014), the role of internal marketing in an organization is to motivate and orient its employees and helping service people to work as a team to meet customer expectation. Kotler (2008) also stated that holistic marketing incorporates internal marketing by ensuring everyone in the organization appreciate the principles, particularly to senior management. In addition, the work of internal marketing is the following: hiring, training, and motivating employees who are willing to serve customer. Marketing components must work together and aligned from the customer’s view, there should have a vertical alignment with senior management and horizontal alignment with other departments.
Furthermore, Ioanna (2002) has also other definition of internal marketing, which is a management process through which an organization enters in a dialogue with wide internal audiences while Zimuto (2013) supported the earlier definition but should focus with the staff attention on internal works that could be changed to enhance external environmental performance.
Moreover, Shaw (2011) point out another definition of internal marketing to an individual as being a market or being a market oriented firm. It focuses on what to happen, why it needs to happen and who should be involved in making it happen. The study also found out that senior management provides information if what marketing is, so that they can understand and why it should have implemented and highlights the pros and cons that an organization may experience if internal marketing implemented.
Prior to Berry and Parasuraman (1992), internal marketing is a way to attract, develop, motivate, and retain qualified employees through performance. They also stated that internal marketing is a philosophy of treating employees as customers and serve to identify their needs in the firm. In the same way, they also define internal marketing as community spirit and motivation to personnel administration.
Another key point by Berry (2001) suggested that employee satisfaction must be attained in order to ensure the satisfaction of external customers. Therefore, employee will consider internal customers by satisfying first their needs and wants while addressing the objectives of the organization, in short internal marketing is a tool to motivate employee’s.
On the contrary, Rafiq and Ahmed (1993), as a result of inter-functional conflicts internal marketing was inherently difficult to implement between departments, management and employees and innate to change. But later on they found out new developments of internal marketing.
Then in 2003, by emerging and analyzing their study they found out that internal marketing develops skills, creativity, and firm edge. In view of the study if people were educated around internal marketing objectives to achieve, there is a connection to internal marketing. In detail it shows that motivation and commitment to the firm will lead to employee involvement, consultations, information sharing and awareness in the firm.
Consequently, Papasolomou and Vrontis (2006), discussed the emphasis on internal customers by creating people oriented culture and the sets of foundation for building strong corporate service brand. In addition, Varma et al. (2009), suggested that well-structured and rationalized internal marketing approach can improve employee satisfaction with management and overall organizational edge and performance.
In that case, Papasolomou (2006), explained that well-motivated employees will exert effort towards service excellence in the organization that others cannot copy. Forthwith, Muhammad and Yazdani (2009), in order to achieve the vision of the organization employees must be the one to market the firms first, to motivate them to patronize the organization employees needs must be considered. For Akroush et al. (2013), by meeting employee’s needs, they will experience satisfaction and commitment they will become more customer oriented and striking for higher levels of service excellence.
To put it differently, Sahaf and Qayum (2013), states that a well organize employees create brand representatives in the organization and have the ability to create power to the customer to meet satisfactorily, faithfulness, ultimately, and effectiveness while Mudie and Pirrie (2006), stated that internal marketing is made up of controllable elements within the organization to satisfy employees.
In the study by Sahaf and Qayum (2013), reveal that there is a relationship between internal marketing practices and employee satisfaction they also found out that internal marketing is effective measurement in universities in achieving employee satisfaction and enhance performance. On the other hand, a study accomplished by Arshad et al. shows that internal marketing has impact on organization commitment. As a result, commitment will be achieving if organization provide strategic rewards, training, and shared vision to make them loyal to the organization in the long run. On this side, the study by de Meyer et al. (2015), the findings stipulated that employee satisfaction is influenced by internal marketing, common culture and organizational structure. Given this point, meaningful training and development will enhance skills and by coaching to support and ensuring the right fit between the employee’s skills, personality and the job.
Henceforth, Yang (2010) believes that there is a similarity between the role of internal marketing and human resources management, including communication, training, education, and the dissemination of information and that the aim of internal marketing is to motivate employee satisfaction. Therefore, employees must be the first priority in the organization followed by external customers to attain the company objectives.
A recent study by Ahmed et al. (2003), stated that the implementation and alignment of internal relationships between departments, roles and employees inside the organization is necessary to improve the performance of the company and its human resources. Hence, every organization should be concerned with the elements of internal marketing in order to help the marketing department achieve its goals.
Another definition by Doukais (2003), suggested that internal marketing is a tool to achieving service excellence to deliver customer expectation in the firm while Zeitmal et al. (2002), described internal marketing as an instrument to change the morals and behaviors of employees’ to the overall organization goals.
To emphasize a proper implementation of internal marketing employees and management will affect employee behavior that may lead to a better outcome and performance in the organization specially to the employees’ (Grace and King, 2005; Wilson and Punjaisri, 2007). They also stated that internal marketing program must upgrade all the time and support by management to produce effective results.
Above all, a research work conducted by Pranowo (2012), found that rewards, internal communication and training development have competencies and direct influence in the organization. Owing to Ballantyne (2002), he believes that internal marketing is a strategy to enhance relations among employees and management it also determines the boundaries inside the firm. He added that, the main purpose of internal marketing is to enhance internal and external environment.
Similarly, to Gronroos (2002) stated that internal marketing focuses on relationships between employees and management. Because of that, a service oriented and customer oriented approach is a foundation among employees in dealing with customers. As a result, internal marketing act as a complete management mechanism that merges and integrates complex tasks of the organization in two paths.
In future, Denis (1995), believes that internal marketing is a philosophy that attracts, motivate, develops, and maintains the relationship and importance of employees by providing them high quality work environment and satisfying their needs. However, Piercy (2002), define internal marketing as a way to implement strategies in the organization while Carter and Hogg (2002), defined internal marketing as part of market orientation that requires technique inside a firm in order to create values for the firm.
Formerly, a study piloted by Mondanipour et al. (2013), found out that there is a significant relationship of internal marketing to employees in terms of managerial styles, payments, and the environment of the organization and organization-based self-esteem.
Opposite to Joseph (1996) and Anselmo (2008), internal marketing defines as selling the firm mission to its employees’ as satisfying their needs and wants by supporting and offering good ambiance of environment to increase employee satisfaction. Under those circumstances, many scholars such as Aeeni et al. (2013),), Gonza´lez and Garazo (2006), Prevail and Rafeq (2003), agreed that internal marketing is concerned with helping employees’ to become committed and motivated to the firm.
Further, ElSamen and Alshurideh (2012), stated that the components of internal marketing are motivation, communication, employee recruiting, development, internal environment and work system. Forthwith, Liylod (2004) outlined that internal marketing entails, but not limited to communication, recognition, orientation and training. All in all, Ching and HsinHsin (2007) understood that the five aspects of internal marketing are training of employees, communication both internal and external, administrative support, human resources management and development.
To support a study by Alshurideh et al. (2014) shows that there is a relationship between internal marketing and organizational citizenship behavior. In brief, internal marketing is a way and tool to establish customer focused organizational culture with an aim to establish both internal and external awareness by diminishing obstacles and barriers in the organization (Christopher et. al., 1991). Now, the basic purpose of internal marketing is to motivate employees and create a good image of the organization to serve customers with great and well manner way (George, 1990; George & Gronross, 1981).
In the light of Cowell (1984), understanding in internal marketing as a management approach in which frontline and staff must support their area included the approach and motivate them to exert effort for their performance for the adoption of customer oriented. Equally important, De Brum (1998) explained that the objective of internal marketing is to inform the employees about the mission and vision of the firm. On the contrary, Vasconcelos (2004) emphasized that internal marketing is a way to ensure employees experience enjoyment to their job to fulfill job satisfaction.
Identically, Caruana and Calleya (1998) justify that internal marketing process is associated with delivering customer satisfaction focusing particularly on the relationship between the internal environment and extent of internal marketing by its outcome in terms of level of commitment and satisfaction of employees in the firm and they found out that internal marketing and dimension of organizational commitment are significant between service quality, and business performance (Yafang Tsai, 2008; Opoku, 2009; Panigyrakis, 2009).
Moreover, Hogg (1996) suggested that to attain employee commitment, internal marketing is the answer to gain commitment. Lack of commitment in the communication and commitment of employees can harm the organization performance resulting to improper service both internal and external environment.
Furthermore, Drake et al. (2005), recommended that the effective implementation of internal marketing can create significant change in the organization. He also asserted that by involving employees in internal marketing corporation can convert employees as asset in the organization that can result financial rewards and commitment.
In the same way, Dunmore (2002) explained that strong position of internal marketing strategy can be critical in maintain competitive advantage, as well as being key driven of change and shaping performance in the long run, a realistic result demonstrates that potential relationships exist between internal marketing and customer satisfaction in terms of service quality (Bansal et al., 2001; Ewing and Caruana, 1999).
Some findings about organizational problems are more internal marketing, not external and therefore, implementation of an internal marketing creates opportunity to enhance service quality of organization (Prasad and Steffes, 2002).
In recent literature Abzari, Madani, and Ghorbani (2011), defined internal marketing to ensure employee feelings about the care of management for them and level of consideration about their needs.
In contrast, to Moores and Reynoso (1996) internal marketing can increase employee’s attention in enhancing service quality and efficiency through communicating their vision while Chang and Lee (2008), describes internal marketing to positive relationship with job satisfaction and employee performance.
A result found, that internal marketing has a positive impact on employee job satisfaction by Ishaque and Shahzad. In addition, a research by Jumadi (2014), shows internal marketing in organizations must serve to employees, if the employee serves properly the result is better performance. At the same time, another study conducted by Shukur et al. (2015), shows that staff appraisals, staff meetings, and management are good element of intemal marketing.
To explain, Collins and Payne (1991) affirm that internal marketing, relates that management of human resources and describes the application of internal marketing in the firm. It is understood that both employees and customers is part in the organization that work together to achieve the goals of the firm.
In effect a research study by Yildiz (2016) shows that internal marketing and organizational citizenship behavior have relationship. In short, if internal marketing will emphasize on employees it will show citizenship behavior. As has been noted, males show more organizational citizenship behavior than female, in addition, when age and income increases, organizational citizenship decreases. In short, internal marketing affects organizational citizenship behavior and in other word internal marketing application increase academic staff citizenship behavior.
Despite a lack of implementation framework in internal marketing literature, a number of key elements of the internal marketing mix can be identified from the literature. According to Gummesson (1991), the elements of the internal marketing mix of literature are communication, training, education, and information. Gronroos (1985), motivating, developing and, educating or training employees are the key elements of internal marketing.
Founded by Gilpin (1997), on the review of the internal marketing literature and elements. The key elements of internal marketing based from Galpin’s organizational influence system are:
1. Strategic rewards
2. Internal communication
3. Training and development
4. Incentive systems
5. Empowerment
According to Herzberg, 1968; Bigley, and Steers (2003), motivation has enormous impact on employee’s productivity and performance. In short, organization should also understand on how to motivate their employees. Equally to Mark et al. (1998) and Saadat (2005), motivation is a technique to act employees to exert their expertise to their responsible job in the organization. They found out that a one way to motivate employees is through recognition and rewards but there is a difference impact between rewards and wages. Rewards is base from superior performance while wage is base from their duties at a normal standard
To explain, financial reward is an example of motivation for employees in the organization it means that employees are spends a lot money on the gift directly. Financial rewards have only short term effect on employees and easily forgotten later on in their work place. There are four common financial rewards namely cash, bonus, salary, and praise. Based from the surveyed by Society for Human Resources Management (2009), found out that benefits and compensation are important. A cash bonus is an strategy or serve as extra bonus on the salary to encourage them to work harder and to meet the company goals. In addition, they also found out that six out of ten employees indicated that they would be very likely to resign to their current position if they will have received a 30% salary increased and same benefits packaged offered by another company.
As a matter of fact, Mckinsey Quarterly found that seventy percent (70%) of organizations they use motivation as their strategies to encourage employees. Another result found out that non-financial rewards or recognition serve as better motivator than money.
Internal Communication
According to Barnfield (2003), internal communication is a way of disseminating communication or information in the organization while Jo and Shim (2004), building relationship between employees and management is a meaning of internal communication. But Heron (1942), stated that communication is way of sharing information to employees and contribute goals, attitudes, and criteria for effective communication. He is the first one who introduce the new world of organizational communication to implementing two- way communication between employee and management and allowing to have an open and honest communication. He stated that communication is a line function of organization it is a two-way communication and not persuasion or propaganda campaign in which employees have a freedom and opportunity to ask queries and exchanging of answers and ideas.
For further explanation, a research by Hunt and Ebeling (1983), at the medical manufacturing facility, he studied the effectiveness of organizational communication program. The ten-week study composed of ninety members, the researchers witnessed that management lectured to employees they developed several attitude and work satisfaction, the purpose of the research is to communicate downward management to the workers they found out that communication program and job satisfaction are only one contributing factor for satisfaction and the satisfaction result by employee feeling appreciated of their job.
Mc Coy and Associates (2006), explained empowerment as the power and ability to take independent action, within well-defined limits, which will influence the performance while Greer and Melvin in (1994), it is processed to enhance skills and abilities to develop themselves and to find solutions for their problems. Empowering means the process of distributing the decision making when employees are empowered, they are charged with the responsibility of whatever their actions may be. In addition, empowerment usually accelerates the knowledge that is linked between work and skills which have an influence on the motivation.
At this instant, Melhem (2004) pointed that the empowerment literature shows diverse meanings and definitions of empowerment. However, most definitions indicate that empowerment implies giving employees more right and prudence in performing employment odd jobs and giving them autonomy to solve all issues related to their work. To summarize, in spite of a diversity of definitions of empowerment, this concept means giving power to subordinates at a lower level to make them able to make their own decisions when serving customers.
Together with, Amir and Amen (2014) empowerment has turn out to be an important matter within contemporary organizations there is real supports and encouragement to give the freedom to get a job done and the ability to realize organizational goals. Recently, the usefulness of empowerment has started to become recognized in the different environment of project management
Training and Development
According to Al-Hawary et al. (2013), training is defined as the attainment of skills and attitudes required to perform specific tasks. In contrast, Liyold (2011) an organization should be able to make new employees have the feeling that they have been hired due to their competence and experience. The employees should be trained and developed in such way that they get to understand the organization’s objectives so that they can handle the tasks delegated to them quite perfectly. Similarly, Hayton (1990) discusses the need for skills with an organization involving employees in the process and linking skills audit to the organization strategy. It highlights the simple need approach which can be understood by employee’s unions and management. He also identifies the potential issues in the organization.
Research by Hussey (1999), looking at the use of education and training as a strategic action found that only a third of firms surveyed applied training and development as management development programs to an organization to achieved organizational goals.
This portion reviews all the information gathered through various studies about internal marketing and authors of different books and journals to support our study. The above mentioned works collected the importance of internal marketing in all any organizations and objectives to its mission and vision. It also demonstrates the barriers that can affect in implementing internal marketing such as people, concept, and utility or cost, and different strategies which could lead to developments. The aforementioned stated the internal marketing variables that can be used as a conceptual framework, recommended by different authors and various studies.
To summarize the different meaning of internal marketing given by different authors and related studies, it highlights how you can market or promote your company objectives to your employee using the internal marketing to have a better performance and satisfaction in terms of excellence.
Putting together all the findings, results, and recommendations from the twenty-five (25) related studies about internal marketing. Internal marketing has competencies and strongest influence on employee satisfaction and excellent performance to external customers. The results demonstrate also that internal marketing is totally effective in an organization and shows that employees will remain loyal to the company even in difficult times, if the company is transparent about the challenges it is facing and about its strategic direction. One of the recommendations from the study of Vaseer and Shahzad from Higher Education Institution of Pakistan recommended to use internal marketing for the management of public and private universities. It could guide them in applying the internal marketing concept for their faculty members and as a result enhance job satisfaction and excellent service, ultimately leading to enhance employee performance and student satisfaction.
To differentiate the study from related studies, the researchers used internal marketing to educational institution to find out the level of satisfaction of SMU employees on internal marketing. Yet, other studies conducted by different researchers they used internal marketing to commercial banks, maritime transport, furniture manufacturers, medical, tourism industry and private sector. Based from the given studies they found out that internal marketing has an important role in an organization.
The similarity of our study is some studies use internal marketing also in university to identify the employee satisfaction and effect on organizational self-esteem.


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