impact of internal marketing on external marketing

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<p>Table of Contents</p> <p>........................................................................................................................................i Abstract:- .............................................................................................................................i Introduction..........................................................................................................................ii Objective of research:-....................................................................................................iii Research Question:.........................................................................................................iv .......................................................................................................................................iv Research Design Detail:..................................................................................................iv Literature Review ........................................................................................................v Theoretical frame work:-..............................................................................................viii PROBLEM STATEMENT:..............................................................................................x Hypothesis of Study:-.....................................................................................................xi Methodology for Research:-...............................................................................................xi Data collection Methods:................................................................................................xi Population &amp; Sample:....................................................................................................xii Data collection:.............................................................................................................xiii Data Analysis: ......................................................................................................xiii Result and interpretation detail:-.......................................................................................xiv Regression Table...........................................................................................................xiv Hypothesis analysis:-....................................................................................................xiv Conclusion:......................................................................................................................xvii Recommendation:............................................................................................................xvii Acknowledgement:.........................................................................................................xviii Appendix............................................................................................................................19</p> <p>Abstract:Internal marketings main focuses is to acquire and retain customer-oriented employees. A development-oriented economy requires organizations to attract and retain customers to ensure a sustainable competitive advantage. To achieve this aim, organizations must</p> <p>focus their efforts on developing and sustaining an organizational culture that emphasizes internal customer well-being as a means to attract and retain external customer. This paper explores the relationship between internal marketing and external marketing. We propose that in order for firms to undertake successful marketing activities in dynamic business environments, employees must be willing to offer the required effort to adapt rapidly and fluently to external environmental change. Based on the literature in internal marketing and external marketing, we propose a model that relates five key internal marketing practices to external marketing that build customer satisfaction and loyalty. Key words: internal marketing practices, external marketing, customer satisfaction.</p> <p>IntroductionMarketing is the business function which identifies customer needs and wants, determines which target market the organization can serve the best and designs appropriate products, services and programs to serve these markets. So we can say that it</p> <p>is a philosophy that guides the entire organization. The goal of marketing is to create customer satisfaction by profitably. The marketing department can not accomplish this goal by itself, it must co-operate closely with other departments in company and partners with other organizations throughout its entire value delivery system to provide superior value to the customer. Organization gain market leadership by understanding customers through superior value. Marketing is not something to satisfy customer but also employees. Before going to explain the affect of internal marketing on external marketing first we would like to define these two terms. Internal marketing is a process which trains, motivates and empowers employees at all management levels to consistently deliver a satisfying customer experience. External marketing is the forces outside of an organization that control a market. So we can say that internal marketing is within the organization and external marketing is outside the organization. Internal marketing focuses on employees motivation to provide superior value to the customers. If customer is satisfied with the companys product, it means that companys marketing is good for making profitable relationship. If company is weak in internal marketing. It cannot achieve its major objectives that are profit maximization through sales marketing. The main aim of this study is to investigate which internal marketing practice effect external marketing. The research subjects consist of employees in banks at Blue Area Islamabad of management level.</p> <p>Objective of research:The core objectives of this study are given as follows;</p> <p>First objective of this study to get insight that "how internal marketing of any organization influence on externalities of that organization".</p> <p>Second to know how the employee job satisfaction effects on external marketing. Organizational commitment helps to improve externalities of an organization. Mostly external market is affected by organization's loyalty. Most of the external factors affect the trust on management issues.</p> <p>Research Question:We want to describe Which internal marketing factor effect strongly external marketing? People influenced and discarded any organization; we explore the underlying causes of these problems caused.</p> <p>Research Design Detail:In this research we use cause and effect study so regression analysis supports this study as research design. We calculate multiple regression coefficient to analysis our research in order to quantify the result for the purpose to estimate the assumptions. Multiple regressions allow examining the effect of factors effecting on outcomes. In this study, in order to test the mentioned hypothesis, all of the internal marketing factors selected in this research like job satisfaction, organizational commitment, organizational loyalty, trust on management and internal communication have been summed up and then</p> <p>multiple regressions has been run with these as independent variables and external marketing as dependent variable.</p> <p>Literature ReviewThis research is all about the marketing strategy of a company. This strategy is divided into two parts internal marketing and external marketing. Internal marketing is attracting, developing, motivating and retaining qualified employees through jobs that satisfy their needs. The satisfaction of employees strongly influences by the quality of services extended to external marketing that satisfy to customers. Both have direct impact on companys success. Those companies who run their programs more efficiently by providing different benefits to their employees are successful in external marketing. According to Berry (1981) Employees are internal customers in internal marketing are just like external customers. Internal customers would like to have their needs satisfied. The reason is that by satisfying the needs of internal customers, an organization will be in a better position to deliver the quality desired to satisfy external customers. By fulfilling the employee needs enhances employee motivation and retention and also employee satisfaction, the higher the employee satisfaction generates external satisfaction and loyalty. So we can say that internal marketing enhance employee motivation, creativity, innovation and performance. Internal marketing is often connected with customers and sales people as a goal to get as loyal customers. According to Cowell that Internal marketing is a management approach which enables and motivates all members of the organization to understand their role and to satisfy their customers by providing them high quality services</p> <p>The basic way to achieve employee satisfaction is treating employees as customers. The company should recruit those employee who are highly motivated, customer oriented and sales minded. Employees also need the right type and the level of training to perform their jobs. This can help to reduce uncertainty surrounding their role and help employees to meet the needs of customers more effectively. According to Bansal et all (2001) that internal marketing can improve the organizational commitment and job satisfaction when employee job satisfaction is enhanced, employees adopt a positive attitude when serving external customers, a situation that can help to enhance customer loyalty. So we can say that firms can use internal marketing activities to transmit organizational vision and goals to employees. Through the design and implementation of human resource management systems for internal marketing, internal marketing is available to enhance employees' job satisfaction, motivate employees to achieve organizational goals and promote employee perceptions regarding organizational commitment. Internal marketing is based on the considering that no single organization function is effective if it operate in individually. Multi operations and people with different skills have performed activities in creating and delivering products and services. These crossfunctional activities and the people who perform them have major influence upon the outcomes. In todays world, managers must ensure that all the workers are actively involved in the delivering high quality products. According to Barnes, (1989) that the loyalty of customer is based on the service satisfaction, however it requires the collaboration and commitment of employees. Employees commitment to the organization and their effort towards the achieving</p> <p>organizational goals or in other words we can say that employees loyalty build customer loyalty. Employee commitment affects the external marketing factors. Encouraging the employees to buy their own services and products, this can increase the sales and confidence for external customer.The key aims of internal marketing are the development of internal and external customer awareness and the removal of functional barriers to achieving organizational effectiveness. Employee motivation is also very important, and it can be done by giving incentives or rewards to them According to Heskett, Jones, Loveman, Sasser, and Schlesinger (1994, pp. 164165), Profit and growth are primarily achievable by customer loyalty. Loyalty has a direct relationship with customer satisfaction. It is largely influenced by the value of services provided to the customers. Satisfied, loyal and productive employees create value. Employee satisfaction, in turn, results primarily from high-quality HR practices that enable employees to deliver results to the customers. It is clear that the success of external marketing of a service organization is dependent on the success of how well it markets itself internally. According to Barnes &amp; Morris, (2000), Morrison, (1996). Internal marketing practices mean to retain the most qualified and skilled workers, because these are the assets of any organization. If the employees are satisfied they can better take care of the external customers and high quality customer satisfaction is derived by internal employees loyalty. If the internal structure of any organization is strong, it will defend the external factors. A successful internal marketing process produces highly motivated and well-trained customer-support employees, who always do the right things first in the right way, and</p> <p>perform the right behavior when treating their customers. Employees with flexible nature are the need of todays competitive environment. Marketers have to concentrate on the internal market as much as on the external market, if they want marketing plans and strategies to be successfully and effectively implement within their organization. Therefore, it is very important to build the right and appropriate internal environment to build strong customer relationship. If the internal structure of the organization is standing on strong bases, like employee satisfaction that organization can satisfy their external customers easily. After studying the articles, we seem that for the success of external marketing, internal marketing is very important. In internal marketing we found five independent variables like job satisfaction, organizational commitment, trust on management, organizational loyally and internal communication. Now we will see how these variables impact on external marketing.</p> <p>Theoretical frame work:-</p> <p>Dependent Variable: External marketing is the dependent variable. External Marketing: It represents the whole externalities of an organization like expectation for job or carrier or for services provided by the organization when people come to an organization in order to use its provided services and get satisfied. External marketing plays an important role in the success or failures of an organization. If a customer is satisfied from the organizational services then behaviors would be positive towards the organization.</p> <p>In dependent variables: Following are the key factors of internal marketing used in this research study Job Satisfaction: .We use the following question for job satisfaction .I always look ahead to go to work -5 .I enjoy doing my work -6 .I have natural inclination to my job -7 Overall I am satisfied with my job. 8Organizational commitment:</p> <p>We use the following question for Organizational commitment. .Our organization is sincere with employees -9 .This organization has a great deal of personal meaning for me -10 .I would be happy to spend the rest of my carrier in this organization -11 .For solving problem your organization likes to have discussions -12 Trust on Management: We use the following question for Trust on Management. .I trust on my organizations management -13 .Management generally solves my personal problem -14...</p>