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EMPLOYEE MOTIVATION AS A TOOL TO

IMPLEMENT INTERNAL MARKETING

A SEMINAR REPORT

Submitted by

RAJ KUMAR ADHIKARI

PU Regd. No.: 066-2-3-00123-2014

Kantipur International College

MBA Fourth Semester

A seminar report Submitted to Purbanchal University

Faculty of Management

In partial fulfillment for the degree of

Master of Business Administration (MBA)

August 27, 2016

Kathmandu

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DECLARATION

I declare that to the best of my knowledge that this work contains no material which has

been accepted for the award to the candidate of any other degree or diploma, in any

university or other institution and the report contains no material previously published or

written by another person, except where due reference has been made in the text.

I wish myself not to be held responsible or liable, against the result and consequent

decisions or findings in this report.

I shall be ready to bear any of the charges or panelty if find any guilt or fraud in this

report.

----------------------------------

Rajkumar Adhikari

August 27, 2016

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ACKNOWLEDGEMENTS

I express my gratitude to Purbanchal University for providing me the opportunity to

conduct a study on Service Marketing. This Study has been carried as a study based

report for the seminar series, Master of Business Administration (MBA), according to the

course offered by Purbanchal University. This study has been made with a view to

explain the employee motivation as a tool to implement service marketing.

Firstly I would like to express my sincere gratitude to our Principal cum seminar course

facilitator, Mr. Narendra Kumar Shrestha for his continuous support and guidance

throughout the duration of the project.

Outside of academia, I would like to thank my parents and my brother for all the

emotional support and care they provided.

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TABLE OF CONTENTS

Declaration …………………………………………………………… . i

Viva- Voce Sheet..………………………………………………………ii

Acknowledgement …………………………………………………….iii

Table of Contents ……………………………………………………….iv

List of Figures……………………………………………………………v

List of Abbreviation ……………………………………………………..vi

Abstract…………………………………………………………………..vii

1. Introduction ………………………………………………………… 1-9

1.1 Background of Study …………………………………………..1

1.2 Problem Statement …………………………………………….8

1.3 Objectives of Study …………………………………………….8

1.4 Limitation of study …………………………………………….9

2. Literature Review ………………………………………………… 10-20

2.1 Employees‟ Motivation ………………………………………10

2.2 Internal marketing and employee Motivation:.…….…………..11

3. Research Methodology …………………………………………… 21

3.1 Research Design ……………………………………………… 21

4. Conclusions and Recommendation ………………………………..22

4.1 Conclusion ……………………………………………………….22

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4.2 Discussion…………………………………………………………22

4.3 Recommendations …………………………………………………22

4.4 Limitation and future Research……………………………………..23

References ……………………………………………………………...24-26

LIST OF FIGURES

Service Marketing Triangle……………………………………………………...1

Creating Incentive…………………………………………………………….....6

Segmentation……………………………………………………………………15

Research Proposed Model……………………………………………………….19

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LIST OF ABBREVIATIONS

MK Marketing

IM Internal Marketing

LVCVA Las Vegas Convention and Visitors Authority

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Abstract

Implementation of strategies in the organization is the major problem. For the happening

of marketing motivation plays an important role. Without motivation of employees, it is

difficult to implement internal marketing. In the external marketing, we are using

motivational marketing concept so that customer buy the product repeatedly.

Motivational marketing brings customer loyalty. Internal marketing is the growing

concept in the organization. It is the buy-in process. Before doing external marketing, it

is essential to starts marketing inside the organization. Employee motivation is a tool

through which buy in process becomes easy. This study reveals what are the difficulties

organizations are facing in implementation of internal marketing. Motivation of

employees is prerequisite for success of internal marketing. To improve performance of

organization internal marketing is implementing in the internal market. Before

implementing marketing strategies, it is important to motivate employee first. However,

internal marketing concept under conceptualized. There is need to focus on its concept.

Many authors gave their own view about this concept.

Keywords- Employee motivation, internal marketing, implementation of internal

marketing, Service marketing

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1. INTRODUCTION

Service Marketing

In the United States, tourism is a trillion-dollar industry. However, selling an intangible

product is a challenging task for most cities in the country. How can you sell a product

that a consumer will never own? The most successful tourism campaigns don't sell

products, but experiences. Consider the “What Happens Here, Stays Here” campaign by

the Las Vegas Convention and Visitors Authority. The LVCVA is responsible for

bringing millions of people to the city every year and “What Happens Here” is its most

successful advertising campaign to date. Launched in 2004, it preceded a record-breaking

visitor rate of 37.4 million people to Las Vegas in just a single year. “The emotional bond

between Las Vegas and its customers was freedom,” noted marketing agency R&R

Partners after conducting extensive research. The campaign may not sell a good, but it

still promises consumers that they will get something they can take home with them: An

experience unique to the city of Las Vegas.

What is Service Marketing?

Services marketing are a broad category of marketing strategies focused on selling

anything that is not a physical product. This includes everything from personal services

like medical care and spa treatments, to the rental of vehicles and spaces, to experiences

like concerts and dance lessons. Any method that can communicate a service's appeal and

benefits to customers is a valid approach, including informational content, promotional

deals, advertisements, and many other kinds of marketing materials. In the case of the

“What Happens Here” camspaign, the LVCVA sold the experience of visiting Las Vegas

in an attempt to generate customers for hotels, restaurants, and other local businesses.

The campaign consisted of a wide variety of materials, like television commercials,

magazine ads, Internet ads, billboards, and others marketing materials that communicated

the campaign's message consistently.

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Services Marketing Triangle

Figure no: 1

Service marketing triangle–a dynamic model where there are three interlinked groups that

works together to develop, promote, and deliver services. These key players are labeled

on the points of the triangle – Company, Customer, Providers. Between these three points

on the triangle, there are three types of marketing that must be successfully carried out for

a service to succeed – external marketing, internal marketing, and interactive marketing.

All these activities revolve around making and keeping promises to customers. For

services, all three types of marketing activities are essential for building and maintaining

relationships with customers.

Points of the Triangle

Each side of the service marketing triangle represents a type of marketing, and the types

interact between the entities on the points where the sides meet. At the top of the triangle

sits your business organization. At each corner at the bottom of the triangle are your

customers and your employees who interact with and provide the services to your

customers.

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Internal Marketing

Internal marketing is the side of the triangle between your organization and your

employees who provide your services to customers. Marketing issues include adequate

training on the services to be delivered and customer satisfaction service techniques.

Internal marketing requires you to be involved with your employees and let them know

the goals and even problems facing the business. Internal marketing also can include a

performance rewards system for employees who deliver the highest level of customer

service.

External Marketing

External marketing goes from your business organization out to customers and

prospective customers. This is the traditional form of business marketing, showing

customers how the services provided by your business benefit them. External marketing

includes advertising, your website and your company's social media efforts. The purpose

of external marketing is to fill the business pipeline with future business.

Interactive Marketing

The side of the triangle between your employees and customers is called interactive

marketing. This form of marketing revolves around how your employees deliver the

services your company provides. The goal is to have highly satisfied customers who

become long-term, repeat customers. The effectiveness of the interactive marketing

relates back to the internal marketing efforts of your business. Interactive marketing is

also how your employees keep the promises made by your external marketing efforts.

According to Vary and Lewis (1998) depicted that internal Marketing first identified

within service literature in 1970. It is used as a solution to problem of delivering service

quality. In the organization, there was problem of how to improve service quality? Thus,

the aim of internal marketing is to develop customer conscious employee to improve

service quality [1]. According to (Ewing and Caruana, 1999) the main aim of internal

marketing is to have customer-oriented employees motivated in the organization. It is

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also focusing on acquiring and retaining customer oriented employees. By using internal

marketing approach, service quality of employees can be improved. In the organization,

employees are working to provide service to external customers for this it is important to

take care of employees because they are interacting with the external customers.

Organizations are facing problems that how to retain and motivate employees? Some

scholars researched on effect of internal marketing in employee retention and they found

that there is positive effect on it. Many researchers also worked to see impact of internal

marketing on employee job satisfaction and this proved that due to internal marketing

employee can be satisfied. Main intention here is that to make employees feel that

management considers the employees and their needs.

Internal marketing approach of customer orientation considers the attraction, retention,

and motivation of service-minded employees. In the view of Rafiq and Ahmed (2000)

motivation of employee is not only sufficient in itself. With this customer, orientation is

also important. According to Ballantyne (1997) many authors agreed that internal

customer satisfaction would ultimately effect the satisfaction of external customers. Thus,

motivation of customer-oriented employees is important to improve service quality that is

the function of internal marketing. Ravneet Kaur (2012) presented a model, which shows

that internal marketing aim is to improve service quality through employee satisfaction. If

the employee is providing better service due to making their image in front of customer

but may be, they are not motivated because of poor human resource system. De-

motivated employees are destructive for the organization. Internal marketing not only

provide better service to external customer but also cares to its employee. Lings and

Greenly (2005) recommended providing better service and customer satisfaction it is

necessary to encourage and motivate employees through the internal marketing. It

improves the service quality of organization. This means that to improve service quality

of organization, motivation of employee plays an important role. Organizational problem

is how to improve service quality. The answer lies in by motivating and satisfying

employees. Internal marketing is the practice through which employees can be motivated.

Motivation of employees is necessary for the implementation of marketing practices. It is

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well known fact for the happening of marketing motivation plays an important role.

Internal marketing is the buy-in process. Before doing marketing in the external market it

is necessary to do marketing first in the internal market. Marketing is not the one person

job. It involves all of the organizational people. Marketing is the exchange process.

According to Sasser organization is a market. In the organization all the employees, are

doing exchange with each other. Many researchers defined internal marketing differently.

There are the three views of meaning of internal marketing which are-

1) It is to motivate and satisfy employee.

2) It makes employee customer oriented.

3) It helps in change management

Simply we can say that internal marketing is the marketing inside the organizational

boundary. Giving motivation and satisfaction is the act of human resource management.

However, due to increasing competition motivation of customer is essential. Concept of

marketing changed due to fierce completion. Customer orientation is required to get

success in the market. The organization, which is not using the concept of change

management, is also lagging behind. To make the buy-in process motivation of

employees is first priority. It is necessary to know what gives satisfaction and motivation

to employees to implement internal marketing successfully. Many private companies are

giving opportunities to their employees. However, as we see today‟s internal market of

organization is full of boredom, stress, conflict, and tiredness etc. employee satisfaction

gives way to remove these problems of internal market.

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What is internal Marketing?

With an internal marketing strategy, employees are treated as “internal customers” who

must be convinced of a company's vision and worth just as aggressively as “external

customers.” The goal of internal marketing is to align every aspect of a company‟s

internal operations to ensure they are as capable as possible of providing value to

customers. If a company can operate in a coordinated and standardized way, that

company can provide a more consistent experience to their customers.

Internal marketing is based on the idea that customers‟ attitudes toward a company are

based on their entire experience with that company, and not just their experience with the

company‟s products. Any time a customer interacts with an employee, it affects their

overall satisfaction. Everyone from a sales clerk to an over-the-phone tech support

specialist helps to shape that customer's experience. Therefore, customer satisfaction is

deeply dependent on the performance of a company's staff.

For example, Apple has a unique organizational culture that emphasizes innovation,

creativity, and expertise. In order to promote this culture, they are highly selective when

they recruit employees and extremely thorough when they train them. Apple realizes that

the best way to promote the image of their brand is for every employee, particularly the

ones who work with customers, to accurately represent that image. Anyone who has been

to an Apple store knows that the employees are experts in the products they sell and are

willing to answer an endless number of questions. They are smart, accessible, and

knowledgeable, positively reflecting the company as a whole.

Human resources professionals typically spearhead internal marketing campaigns. Since

internal marketing focuses on leveraging the value of employees, strong communication

between the company and the employees is crucial. Their primary responsibility will be

to disseminate information about the company's goals and strategies, and to provide

training and support to help employees achieve those goals.

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Creating Incentives:

Most internal marketing efforts provide incentives for their employees to hit certain

targets. It is important that this incentive be something that actually motivates people. A

2011 survey by Harris Interactive asked respondents what bonuses they most wanted to

receive from their companies around the holiday season. The survey reveals that people

are best motivated by making more money and least motivated by company parties.

Information like this is important for companies trying to create an enthusiastic

workforce.

Figure no: 2

Who employs internal Marketing?

Strictly speaking, any company can implement an internal marketing campaign. Even the

smallest businesses will want to train employees to project the vision and goals of the

business. Think of a small bakery that trains its staff to greet customers with a smile and a

positive attitude when providing service. Aligning the attitudes of employees with the

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mission of the business is crucial for any company that wants to engage with their

customers.

It is typically larger firms, however, that are most invested in internal marketing

strategies. Because they have so many more employees, often working in disconnected

departments and offices, it is more challenging to enforce a company-wide culture. Firms

with thousands of employees working in R&D, sales, marketing, production, and

logistics must make a concerted effort to educate everyone about the company‟s

marketing objectives Retailers, restaurant chains, and other companies that interact with

large numbers of customers will be particularly interested in internal marketing. They

need to create an organizational culture that extends throughout the company and projects

outward to customers.

Internal Marketing Tactics

Identify every area where the organization comes into contact with the

marketplace

Allow top performers to provide feedback on internal marketing and HR issues

Use newsletters or in-house radio programs to spread information and reinforce

organizational culture

Make the marketing strategy a feature of employee training programs

Provide access to information as frequently as possible.

Create performance-based incentives

Provide comprehensive and ongoing training programs for employees at every

level

Position the brand as part of a narrative that employees can relate to and

participate in

Use technological tools like blogs, message boards, and wikis to spread

information

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Tailor internal marketing messages to each department. Messages to salespeople

will be different than messages aimed at IT staff.

Highlight success like new contracts awarded or sales targets met

Encourage collaboration between departments

Benefits of Internal Marketing

Encourages employees in every department of the company to perform better

Empowers employees by giving them accountability and responsibility

Creates a common understanding of organizational goals and strategies

Places value on the employees contribution to the company

Helps non marketing staff to do their jobs with a marketing focus in mind

Improves employee development and customer retention

Integrates the organizational culture with the employees personal and

professional needs

Allows different departments to coordinate and cooperate effectively

Information flows effectively between different departments

Employees understand the expectations placed on them

1.1 Background of Study

Internal marketing is directly related to the company profitability as the employees are the

resources of the organization, employees of any organization is the persons who directly

interact with customer. Thus the background of the study is to make clear about the

relation between employees motivation and internal marketing to implement service

quality. Every organization want to maintain quality service for their customer and that is

to be done through employees of that organization so to maintain service quality

employees‟ motivation is necessary.

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1.2 Problem Statement

A company cannot implement their service quality or maintain their service as per

customer requirement without motivating employees‟ and make them happy to do any

activities that help to promote business of any organization. So employees‟ motivation is

the major chapter to deal for any organization betterment. In this study, the authors

choose Siddhartha Group as a case company to study the employees‟ motivation to

implement internal marketing.

1.3 Objectives of the Study

This study aims to explain about the impact of employees‟ motivation to implement

internal marketing. The objectives of this study are:

To explore the relation between employees‟ Motivation and internal marketing

To explore about the effect of employees‟ motivation to maintain service quality

through internal marketing.

1.4 Limitations of the Study

This study will try to explore the idea about “How employees‟ motivation directly and

indirectly impact the service quality of any organization or the internal marketing ?”

However, the information presented in this report cannot explain the whole relation

between internal marketing and employees‟ motivation in detail because there were

certain limitations like limited time and budget, busy schedule of supervisors and limited

articles reviewed for the purpose of report writing. Similarly, the study lacks about the

quantitative analysis of financial contribution of the any organization in employees‟

motivation related activities regarding their overall profits. Every study has some

limitations even if the meticulous and scrupulous efforts have been made for drawing

fruitful conclusions from the study under investigations. Some limitations deserve

consideration in order to obtain reliable interpretation of the results. The major

limitations of the study have been jolted as follows:

This study has tried to know the role of employees‟ motivation to implement

internal marketing which help to maintain or enhance the service quality of

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organization Siddhartha Group. Therefore, its findings may not be representative

to the other context.

The results drawn from the study are of tentative nature and therefore,

generalization should be avoided for the entire organization.

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2. LITERATURE REVIEW

2.1 Employee motivation

Numerous attempts found in the literature to define the work motivation (Meyer et al.

2004). That‟s why there is no general definition of motivation and is not always used

appropriately. Latham and Pinder defined employee motivation as: “a set of active

services that derive both inside as well as outside of an individual’s being, to began

professional attitude and to check out its form, track, strength, and extent” (2005, p.

486). According to Beer et al, (1984) comprehensive and detailed co operation of

employees‟ motivation is required for organizations to undertake and complete prospect

of employees and organization. Motivation is a process in which people are encouraged

to move ahead for performing something extraordinary to accomplish their basic needs

and get fully satisfied (Butkus & Green, 1999). Motivation is defined by Baron (1983) as

“a set or sequence of actions involved in the push and pulls forces that reinforce the task

of the employees towards attainment of definite achievement”. Motivation corresponds to

“that psychosomatic processes which give rise to stimulation for achievement of desired

goals” (Kinicki and Kreitner, 2001). According to Cheng, (1995) the leading challenge

for management today is to inspire employees for sake of expert offer and improved

services according to customers‟ prospect. . The main controlling function of Human

Resource Managers‟ is to ensure the satisfactory organizational atmosphere for proper

working of employees. . The aim of maximum output through the general manager is to

satisfy the employees and to bind up their benefit with their work by providing the

inspiration causing acceleration and satisfaction. According to the study of Rutherford

(1990) motivation is the effectual driving force in an organization because; motivated

employees are constantly inventive in their jobs. Management must appreciate employees

and formulate the procedures to accomplish the set target. External motivation keeps a

person on job but internal motivation boost up the employees to perform their activities

more accurately (Minbaeva, 2008; Rizwan et al., 2013).

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2.2 Internal marketing and Employee motivation

Rudolf and Kleiner (1989) motivation means “the development of a desire within an

employee to perform a task to his/ her greatest ability based on that individuals own

initiative.” Motivation gives stimulus to perform task. It is the willingness to do work.

According to Jobber (1994), poorly motivated force will be costly due to-

1. Excessive staff turnover

2. Higher expenses

6. Negative morale

4. Increased use of management

5. Absenteeism

6. Sick leaves

7. Strikes

8. Grievances.

According to Berry et al internal marketing is the way to satisfy employees need. Needs are

never fulfilled. Motivational marketers satisfy want of a person. To satisfy the need there are

various choices in the market. Actually, you purchased what you want. This way

motivational marketing is effective. For example if a person need job then he would get it

anywhere. However, if he wants job in a particular company that is his want. Marketers ask

what you want not what you need. If marketers try to satisfy your need then it is not possible

for them.

According to Berry, internal marketing is the concept to treat employees as customer.

The reason behind this is that organization is a market and there is need to satisfy need of

the internal customer.

Aim of human resource management is to manage employees. With the aid of marketing

like activities, internally internal customer becomes satisfied and happier. People

purchase the thing because they want the feeling that comes with the product. They do

not need that product but they want to get feeling with that particular product. Most of the

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times we buy are not our need that is our want. Organizational success depends on how

effectively managers motivate their subordinates. It is not easy to motivate employees. It

is difficult to understand the reason of people behavior. According to Marshall (1998)

explained that internal marketing means how the company manages its employees.

Meaning of internal customer service is that they deal with how employees serve each

other. Internal customer is every employee of the organization. There is exchange of

products and services in the organization. Lings (2000) et al it is based on the assumption

that external service quality is dependent on internal service quality. Aydinalp studied on

5 star hotels to find out the effect of motivation on marketing communication. It is found

that internal and external factors both are important for motivation of employees. It

makes a positive impact on marketing communication.

What motivates employee is the biggest challenge in front of management. Motivation

criteria should be decided according to need of employees. Internal marketing is the best

option to find need of employees. Due to internal marketing practice, employees can be

motivated. It is found internal marketing plays an important role for motivation. Internal

marketing practice includes employee involvement, consultation, information and

awareness. Various studies revealed that there is positive impact of internal marketing on

job satisfaction, employee commitment, employee etc. An empirical study conducted by

Myriam on a sample of 116 banking customer advisors and three clients of each (348

client). They found that customer orientation has a mediating effect between internal

marketing and service quality perception. For this, they used measurement scale, which

has been established according to churchills paradigm. Onete Bogdan et al. examined that

“Employees motivation as a critical element of internal marketing Case study: The use of

non-financial motivation through sport activities.” This study carried on Romanian

companies. The aim of this study is to implementing sport activities in the internal

marketing program to motivate employees. A sport activity in the daily work schedule

gives employees satisfaction, trust and loyalty. Sport activities improve the health of the

employees thus; it is very effective non-financial motivation in the present scene. Many

problems are associated with employee during the working hours:-

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1. Sitting on the chair for long time.

2. Stressful environment.

3. Hectic schedule.

4. Conflict between employees.

5. Monotonous work

6. Some employees not fit mentally due to personal problems.

Solution of all the above problems is only one adding sport activities in internal

marketing programme. Kyriazopoulos et.al. (2007) researched on implementing internal

marketing through employee‟s motivation. They surveyed in 356 bank branches of

Greece and studied internal marketing influences on work commitment of employees.

They also suggest how internal marketing linked with market orientation concept. They

conclude that public sector banks failed to implement the concept of internal marketing.

Public sector banks are not following the performance appraisal and motivational

programs for their staff. Their employees are not motivated for to achieve goal but they

are committed to the organization. They are able to stay in the organization for long time

because there is job security. While in the private sector bank, employees are motivated.

Their commitment is low because they know there are many other opportunities in the

market for their career improvement. Ozretic Dosen internal marketing includes

marketing activities are-

(a) Internal Market Research

(b) Segmentation

(c) Communication

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(d) Internal Pricing

(e) Product Policy

Implementation of Internal marketing

According to Berry employees are customer and jobs are product. For the buy in process,

it is necessary to motivate employees. We call it internal marketing because it is in-house

marketing. Motivational marketing is the marketing that motivates customer. According

to Berry internal marketing is antecedent of external marketing. Due to intense

competition, it is difficult to motivate customer to buy products because they have

number of choices.

Implementation of internal marketing improves quality of human resource. According To

Done Et Al., IM programs included for employee development. Due to internal marketing

organization gain long-term growth and success.

According to Bailey and Clarke 2001 motivation is the best way to enhance knowledge

sharing among employees. Fang Rong-Shyh et al. empirically studied on employees of

banks and found positive effect of internal marketing mechanism on intrinsic knowledge

sharing motivation. According to them following is the internal marketing mechanism:-

1) Participative Decision

2) Training

3) Communication

4) Motivation

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Similarly, for improving extrinsic motivation also managers should conduct this

mechanism. To improve employee‟s intrinsic motivation there is need to carry

participative decision, training, communication, and motivation. Limitations of this study

are that they focus only banking sector.

5) Piercy and Morgan, Reardon and Enis, Gilmore and Carson, describes it as a

marketing approach internally. Using marketing as activities for internal Sales and

Distribution

6) Promotion

Implementation of internal marketing strategies is:-

a) Internal Market Research

Information plays an important role in marketing. To meet the needs of internal and

external customers information‟s are required. Internal market research is a tool by which

we collect, analyze, design and find relevant marketing situations facing the company.

Internal market research is a tool through which companies can get relevant information

about internal customers. Internal marketing rely on reports of employees e.g.

Performance reports, behavioral reports, career planning reports etc. This gives the result

data. Marketing intelligence system used to obtain everyday information about

development in the marketing environment. Internal marketing collect marketing

intelligence by

1) Reading journals – organizational people are reading journals in which they get

information about the policies, strategies, achievements, plans of different

organizations.

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2) Internal publications – Internal publication of organization has many benefits. It

gives overall information of organization. It gives vision and mission of the

company. It also gives strategies, policies of organization.

Meetings- Meeting helps to resolve problems. In the meeting, they get different

viewpoints and information from persons. It helps in the development of

marketing environment.

4) Talking to employees. - This is very important factor to resolve conflict. In the

working hours, there are many hurdles to achieve goal. It also helps to know

about market position.

b) Segmentation

To improve the market intelligence system it is important to train and motivate the

employees. To improve the not all employees are alike. Therefore, there is need of

segmentation. Segmentation is a group of similar choices. Market segmentation can

be demographic, psychographic and behavioral. In each target market firm develops

some central benefit in the mind of employees. That is market offering. By this, the

firm understands the need of the internal market. Companies are giving certain

benefits to the employee. Companies giving benefits to employees without knowing

their choices then it is wasting time of it. In comparison to external customers,

internal customers have not various choices. Jobber (2005) represents internal market

segmentation shown in figure.

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In the diagram (a), figure there are 3 fundamental internal market segments are-

1. Sympathizers- This segment support changes.

2. Neutral- In these segment employees have no opinion in respect to organizational

change.

3. Opponents – Those who have not interest in changes or who are against changes and

such employees would like to retain their identity. In this way, Jobber categorized 3

segments of internal marketing mix. Segmentation can be varying according to industry

types. We cannot use similar segmentation in every company.

c) Communication

Kalla (2005) depicts internal marketing as the formal and informal communication

happens at all levels in the organization. Through the communication, data about

employee needs and desire are collected. With the aid of proper communication, the

management can understand employee satisfaction level and loyalty. Stauss and Hoffman

(2000) depicts that the planned use of communication actions to systematically influence

the knowledge, attitude and behaviors of current employees.” Here focus is on

communication action of the organization. It influences the attitude and behavior of

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employees. Due to lack of communication many problems arises in the organization, e.g.

conflict between employees, lack of knowledge of products and services of organization,

poor image of organization, weakens human resource management.

There are many advantages of internal communications are-

1) It builds trust among employees.

2) It provides timely and reliable information

3) To make happy employees

4) It improves work environment

Now days some organizations are using informal communication, self managed teams to

improve organizational performance. Informal talk of employees improves the relation

between employees and reduces conflict. Internal communication is the strength of the

organization. Internal communication enhances teamwork. Flow of reliable information

builds trust between employees.

In the view of Argenti (1998) Goal of internal communications are-

1. Employees believes themselves that they are important asset to the

organization.

2. Builds image of the organization.

3. It is to inform employees about internal changes, products and services of the

organization.

4. To explain benefit plans to the employees.

5. It increases understanding of market.

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6. It is to encourage employee involvement and participation in internal

activities.

Communication must be freely in the organization. In the present scenario, major

problem of organization is lack of communication. Top management involvement is

necessary to improve internal communication. Promoting internal communication by top

management is very important.

d) Internal pricing-

This is the cost of internal activities. Internal marketing is an investment thus every

investment has its price. Before investing cost and benefit, analysis should have to done

by firms.

e) Product Policy-

In internal marketing jobs are products. Thus, product policies are programmes and

services through which management act on employees. Educating and informing

employees about the job product.

Sales and Distribution- In external marketing distribution relates to how product reaches

to the target customer. In the similar manner to accomplish task in the internal

organization proper distribution channel is required. Internal distribution channel such

that it save time, energy etc. of employee. g) Promotions: - Internal promotions are to

promote internal activities of the employees in the organization. Promoting employees

incentive plans, bonus plans job benefits, public relations etc. it helps to attract, retain and

motivate employees.

Promotion includes-

i) Internal sale- employees are selling products and services inside the organization.

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ii) Internal advertising –Internal advertising means to promote goods and services

internally. Employees who understand and like their product and services

promoted their products and services. Thus, advertising starts from inside the

organization.

iii) Internal incentive and disincentive-Incentives are for desirable action.

Disincentive prevents undesirable behavior. Organizational policies, rules,

procedures are such mechanism for disincentive. Incentives are best for

motivating employees.

iv) Internal websites-websites are improving knowledge of the employees about

product and services. Internal websites are promoting their employees to do

more better work. Technology is increasing day by day. It is fast and quick

method to transfer information from one place to another.

According to Kotler (2000) American Marketing Association (AMA) to improve the

efficiency of employee‟s internal marketing plays an important role (Jarvi 2009).

There are various internal marketing activities, are information to employees, training of

employees, creating togetherness, teamwork and motivation. Employees brand building

behavior includes courtesy, responsiveness reliability, helpfulness, & empathy among

others. These behaviors of employees make an impact on consumer‟s perception of

service quality. According to Krishnan & Hartline (2001) branding applied to tangible

product and intangible services as well. This traditional view originates the concept of

employee branding. It is also present in the internal marketing. In the service

organization, service experience is using as a motivator for customer that is delivered by

employees.According to Schultz (2004) there is lack of senior mgt support to implement

internal marketing. For the implementation of internal marketing top management,

support is first priority. Only top mgt can push any idea to whole organization. To make

the buy-in process of internal marketing top mgt support is vital. Lack of knowledge

about internal marketing is also one of the obstacles to implement it in practice.

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Research proposed model

There are limitations in existing literature is that in what way IM implemented to improve

employee motivation so that they act in a customer oriented manner. Internal marketing is

the marketing inside the organization. Employees treat as customers and jobs as product.

The focus is to identify the need of employee so that they became ready to purchase job

products. In the motivational marketing customers are motivated to purchase product.

They are motivated during the purchase and keep them motivated. In the similar way,

motivational marketing is also for organizational people. Here employees are motivated

to buy job products. After they buy job products, also they keep motivated. When

employee is not satisfying with the job products there is difficulty in implementing

internal marketing. Before implementing internal marketing Strategies, it is necessary to

motivate employees for job products. In diagram (B) shows the relation between

motivational marketing, internal marketing and organizational performance. This is a

theoretical research model that shows the importance of motivation of employees for job

products for success of internal marketing. Internal marketing is the buy in process.

According to Kelvin & Lorrie, there are two important aspects of buy-in process–

1) Intellectual buy-in-This involves understanding of business policies, goals,

mission etc. It gives all over understanding of organization.

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2. To build commitment and to engage people. Using emotions to engage people.

Researchers confirm the value of emotional capital.

For the success of marketing emotion and logical reason both are important. Men have

several emotions sad, angry, upset, and empowered and so on. According to Majumdar

“emotion stimulates the mind 3000 faster than rational thought”. To win heart of

consumer there is need to do marketing with emotions. They attract with the product that

makes them emotionally attached. It is important to understand emotions. The new model

came for this is called emotional marketing. Both play an important role in buy in

process. The biggest mistake organization is doing using only intellectual buy-in. they are

not doing any effort to win employee heart or to make them happy.

Marketing of Organizational product is first required in the internal market. It is based

on assumption that if the employee is not convinced about organizational product and

services then how they do marketing in external market. Second most important thing is

commitment of employees is building by winning employees heart. Internal marketing

process should starts with motivation of employees. It is well-known fact that employees

are strength of organization.

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3. RESEARCH METHODOLOGY:

Research methodology is an overall plan for activities to be undertaken during the course

of a research study. It provides a basic framework for the study, guiding the collection

and analysis of data, the research instruments to be utilized, and the sampling plan to be

followed. Thus, it becomes quite essential to describe the research methodology before

presenting the analysis and interpretation of data. In the absence of authentic

methodology, it is likely that the conclusions drawn may be misunderstood. This research

therefore explains the methodology employed in this study. It provides a description of

research design used in the study and deals with the nature and sources of data. It also

describes the population and sample along with the selection of enterprises for the

purpose of study. The methods and process applied in entire study have been described in

this research. Various steps have been adopted to solve the problem and fulfil the

objectives. It includes research design, nature and source of data, population and sample,

respondents' profile, method of analysis.

3.1 Research Design

This study has employed descriptive research designs to deal with the fundamental issues

associated with internal marketing. The descriptive research design has been adopted for

fact-finding and searching adequate information about employees‟ motivation to

implement internal marketing done by the organization. This study is a descriptive

research on the basis of secondary data. The research work is designed to obtain the

answers to all the research and develops models.

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4. CONCLUSION

To solve the problem of implementation of internal marketing motivation plays an

important role. Due to increasing competition internal marketing is necessary to improve

organizational performance. Identifying and satisfying the need or want of employee to

motivate them. To make employees customer oriented and make a change in the

organization internal marketing is required. To make the success of buy in process

motivation is very important. There is need of more theoretical and empirical studies on

implementation of internal marketing.

4.1 DISCUSSION

The most important resource of an organization to remain competitive in today‟s

competitive business world is human resource. One of the challenges faced by

organizations and their management is acquiring the right workforce and then retaining

that force. Human resource is the key factor of every organization. Acquiring the right

work force is very essential for an organization. The research results revealed that

employees‟ motivation is major a part of organization success.Extrinsic rewards also

positively influence employee motivation and positive relationship also exists between

employee motivation and organizational commitment. Quality Service activities are to

improve companies Image and reputation, the socially responsible behavior of a company

management may contribute to the corporate reputation enhancement; bring positive

effects related to its stakeholders and gain competitive advantage.

4.2 Recommendation:

As the employees are the major resources of the organization and service quality is major

factor that plays vital role in organization profitability. Thus the employees‟ should be

motivated for any organization success and helps the company to maintain service

quality. This report recommends every organization to motivate their employees‟ so that

they actively participate in quality management of the organization to provide quality

service to customer.

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4.3 Limitations and Future Research

This study is limited to one country, mainly two cities Bahawalpur and Rahimyar khan.

Sample size was small. Data was collected through questionnaires. Data collected

through other means like interviews may illustrate the relationships more clearly. In

future research, avoiding these limitations may provide additional insight into the under

investigation question.

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