Literature Review On Internal Marketing

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 organisational culture, with aim to establish the internal and external awareness of customers by removing obstacles for the effectiveness of the organisation (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

The study recommended that employees should be treated as internal customers so as to meet the business goals and objectives of the organisation (Nyasha, Rutendo and Vision, 2015). Stratified random sampling procedure was employed where the researcher divides the population into separate groups that is, selecting elements from managers and general employees. Questionnaires and interviews were also used in triangulation to collect these data. Questionnaires were considered as the appropriate research tool so as to reveal sensitive information which respondents would feel uncomfortable to talk compared to an interview. Case study has been used because of insufficient funds to carry a census on all hotels. The data was analysed using spss and the study revealed that IM leads to lower turn-over rates, increased performance, customer satisfaction and communication ( Nyasha et al,

For the accomplishment of the study , job satisfaction such as intrinsic satisfaction and extrinsic satisfaction were measured. Questionnaire was used to collect data from staff of the University Utara of Malaysia. Correlation and regression analysis were used to analyse the relationship between IM orientation and employee job satisfaction. According to the study, IM orientation was positively correlated to job satisfaction.However, the study showed that the organisation had no such significant influence on the staffs extrinsically or intrinsically when the tool of the IM research were implemented. The results revealed that there was a positive correlation between internal communication and employee’s job satisfaction.Moreover, there was a lack of communication synchronization between the levels of management .

Linges, (2004) stated that communication in the organisation was divided into two aspects , communication between managers and employees and communication from departments and hierarchical levels. According to Herzberg, (1966) the leading dissatisfaction were the company policy, supervision, relationship with the boss, work conditions, salary and relationship with peers. Achievement, recognition, the work itself and growth lead to