Internal Marketing of Commercial Banks

Topics: Regression analysis, Linear regression, Errors and residuals in statistics Pages: 24 (6760 words) Published: April 23, 2011
04. What is Internal Marketing:|

Internal Marketing means a marketing by a service firm to train & effectively motivate its customer contract employees& all the supporting service people to work as a team to provide customer satisfaction.

05. Importance of Internal Marketing:|

Think! Is it possible without people to serve customer. For service industry like Bank service means employee. Customer does not know the bank. They know the employee from whom they get services. So managing internal people is very important factor for bank. When internal services is good employee will be satisfied& retained. Satisfied employees provide good services as a result customer will be satisfied. Customer retention also increases. Greater customer satisfaction & retention will increase the firm profit. Now let see how good internal service increase a firm profit &good will. by showing service Profit chain

Internal service
Employee satisfaction
Employee retention
External service quality
Customer satisfaction
Customer retention

Graph-1(Service Profit Chain)

06. Internal Marketing Approach:|

As internal marketing deals with internal people so we have to analysis with three approaches. It includes employee recruiting, training &employee motivation.

a) Employee Recruiting:
Recruiting is the process of discovering potential candidates for actual or anticipated organizational vacancies. It is a linking activity that brings together those with jobs to fill and those seeking jobs. The basic decision depends partly on the type of occupation and its requirements, as well as the stage of national and cultural development of the overseas operations.

Recruiting sources:
Recruiting is more likely to achieve its objectives if recruiting sources reflect the type of position to be filled. Certain recruiting sources are more effective than others for filling certain types of jobs.

The internal search:
Many large organizations attempt to develop their own low-level employees for higher positions. These promotions can occur through an internal search of current employees who have bid for the job, been identified through the organization’s HRM system or even been referred by fellow employee.

This policy has some advantages:
* It is good public relations.
* It builds morale.
* It encourages good individuals who are ambitious.
* It improves the probability of a good selection.
* It is less costly than going outside to recruit.
* Those chosen internally already know the organization.

Employee referrals & recommendations:
Employee referrals are an excellent means of locating potential employees for hard-to-fill positions. A recommendation from a current employee regarding a job applicant is the employee referrals. Employees rarely recommend someone unless they believe the individual can perform adequately.

Graph-2 (Recruiting sources)

The recommender often gives the applicant more realistic information about the job than could be conveyed through employment agencies or newspaper advertisements. But this process also includes some disadvantages like biased consideration, nepotism etc.

External sources:
In addition to looking internally for candidates, organizations often open up recruiting efforts to the external communities. These are:

* Advertisements: When an organization wishes to tell the public it has a vacancy, advertisement is one of the most popular methods to use. The type of job often determines where the advertisement is placed. Advertisements of lower-level jobs usually appear in local daily newspapers, regional trade journals or on broad-based Internet job sites. Some organizations place a blind-box ad, one that includes no specific identification of the organization. Recently some banks are giving advertisement for recruitment &and they are...
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