Internal Marketing Definition

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

Internal marketing is an activity which is viewed as critical and fundamental so as to create a customer- focused organizational culture, with aim to establish the internal and external awareness of customers by removing obstacles for the effectiveness of the organization (Christopher, Payne and Ballantyne, 1991). The concept of internal marketing is more acceptable in service sector such as banks or insurance companies where employees have a direct contact with the customers thus managers should find ways to manage their employees to increase the market orientation (Hartline and Ferell, 1996; Donavan, Brown and Mowen, 2004).Internal marketing helps in maintaining

Promotion is seen as an effective tool to increase employees awareness from what should they do, when and how exactly do that (Smirich and Turner, 1986).

2.2.3 Price

According to Ahmed and Rafiq, (1995) the element of price in the internal context of the organization can be seen as employees receiving values from the firm instead of their payed costs. For instance, creating change in programs for the organization however, employees can be forced to perform more difficult tasks and different activities than before. Thus, new tasks provide an opportunity to increase salary, increase reward or provide job promotion.

2.2.4 Place

Place could indicate visible and tangible and invisible and intangible aspects of the work and working environment. Therefore, this is a factor that shows the environment where exchanges among employees and the organization occurs. Internal marketing is equivalent to the workplace and the environment of the firm which includes culture, symbolic and metaphorical aspects of the organization. In these environment, employees learn loyalty in these organization (Smirich,1983 and Turner

Data was collected on 12 commercial banks of Pakistan where quantitative approach has been used to collect data from 500 banks employees and these data have been analysed by spss. As results, young employees might be more committed to work than the old employees and males might be more committed because female used to have home related tasks. Commitment of employees is achieved when the firm provides strategic rewards, effective training and shared vision