Relevance of Internal Marketing of an Organization

Topics: Marketing, Maslow's hierarchy of needs, Motivation Pages: 13 (3755 words) Published: July 1, 2013
CHAPTER 1

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In this 21st century of accelerated product lifestyles, the easy flow of information and rapid globalization, it is easier for every company to enter the market and competition between companies has increased. As a result, the products and services are delivered according to customer needs and wants. The role of marketing managements in organizations is to identify and measure the needs and wants of customers whereas customer-orientation is the foundation of successful marketing.

Marketing is a term reserved for the process of marketing a product, service or idea to the final consumer outside the firm but marketing also takes place within an organization. Therefore, the market is not only the ultimate customer but also an individual or group of individuals, within the organization.

These internal customers are potentially as important as the external customers. Internal marketing is also beneficial to both internal customers (employees) and organization which attracts and retains employees as a resource of surviving growth and profitability and tries to pave way for partnership of employees in promoting quality of products and services for external customers.

According to Day and Wensley (1983), employees are the organization's internal customers. This regards to internal marketing implies that through internal marketing, organizations offer employees products that satisfy their needs while they contribute toward attaining the objectives of the organization. Products can be identified as jobs, attitudes, behaviours’ or values of the organization (Quester and Kelly, 1999: online).

The relevance of internal marketing to the success of an organization rest in the increased emphasis on service quality in customer oriented organizations. Although external marketing remains the most vital business development task; it is important to sell inwardly towards a company’s people, when employees understand and commit to the value proposition of the organization and its brands, external marketing becomes more effective.

1.2 STATEMENT OF THE PROBLEM

Customers no longer simply purchase products; they co-produce in service organizations (Prehalad & Ramaswamy, 2000). The co-production occurs through the front-line employees and the customer at the time of transaction, therefore, the customer purchasing experience must be comprehended from the organization and customer perspective (Lacobucci & Nordhielm, 2000). This places greater emphasis on the process where each member must feel responsible for the outcome (Manville & Ober, 2003). Berry (1981) pioneered the term internal marketing and originally defined it as “Viewing employees as internal customers, viewing jobs as internal products that satisfy the needs and wants of these internal customers while addressing the objectives of the organization” (p. 25). Internal marketing exists through employees, organizations, external customer satisfaction and cross-functional units, which all require communication for success (Ahmed et al, 2002; Ballantyne, 2003, Berry, 1981; Cahill, 1995). In the view of this, internal marketing is suggested as a solution to the problem of inconsistent service delivery in any service organization.

1.3 OBJECTIVE OF THE STUDY
The following are some of the objectives of the research:

1. To find out the employees' perceptions of internal marketing and its effects on the organization. 2. To ascertain whether, there exists an internal marketing in the organization to facilitate effective management. 3. To know the effectiveness of internal marketing in the organization.

1.4 SIGNIFICANCE OF THE STUDY

The study's significance is as follows:
a. Is a requirement for the award of Higher National Diploma certificate. b. The study will help students, researchers and companies know the purpose of internal marketing in an organization. c. The study will also help...
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