EVOLUTION AND APPLICATION OF INTERNAL MARKETING AND ITS ROLE IN FINANCIAL SERVICE ORGANIZATIONS
DOI:
https://doi.org/10.61837/mbuir010123053mKeywords:
internal marketing, employees, customers, satisfaction, financial service organizationsAbstract
Internal marketing is one way to make employees and organizations different from others. In order to differentiate themselves from other actors in the financial sector, financial organizations face the need for competitive differentiation through the implementation of internal marketing. In this regard, previous empirical studies confirmed that the financial sector, especially the banking sector, is the most popular service sector in the context of internal marketing research. According to the above, the purpose of this paper was to present internal marketing, its evolution, application, and role in organizations operating in the financial sector. A preliminary analysis of previous empirical studies conducted in the financial sector showed that researchers used different internal marketing dimensions and tested internal marketing outcomes at different levels. In order to determine the dimensions and outcomes of internal marketing in the financial sector, an analysis of previous studies in this field published in the period from 2015 to the present and stored in Google Scholar base was conducted. The analysis in this paper showed that the most common testing of internal marketing outcomes is at the employee-level as well as the testing of internal marketing dimensions such as (internal) communication, training and development, rewards and other types of compensation, and empowerment of employees.
References
Ahaiwe, E.O., Okeke, F. A. Internal Marketing and Marketing Performance of Selected Commercial Banks in Umuahia, Abia State, Nigeria. RSU Journal of Strategic and Internet Business, Vol. 5, No. 1, 2020. pp. 1012–1026, ISSN – 2659-0816 (print) 2659-0832 (Online).
Ahmed, P. K., Rafiq, M.: (2003). Internal marketing issues and challenges. European Journal of Marketing, Vol. 37, No. 9, pp. 1177–1186, 2003. https://doi.org/10.1108/03090560310498813
Ahmed, P. K., Rafiq, M., & Saad, N. M.: Internal marketing and the mediating role of organisational competencies. European Journal of Marketing, Vol. 37, No. 9, 1221-1241. 2003. https://doi.org/10.1108/03090560310486960
Albassami, F. A., Al-Meshal, S. A., Bailey, A. A.: An investigation of internal marketing and its effects on employees in the banking sector in Saudi Arabia. Journal of Financial Services Marketing, Vol. 20, No. 3, pp. 176–190, 2015. doi 10.1057/FSM.2015.11
Bailey, A. A., Albassami, F., Al-Meshal, S.: The Roles of Employee Job Satisfaction and Organizational Commitment in the Internal Marketing-Employee Bank Identification Relationship. International Journal of Bank Marketing, Vol. 34, No. 6, pp. 821–840, 2016. doi 10.1108/IJBM-06-2015-0097
Ballantyne, D.: The strengths and weaknesses of internal marketing, In: Internal Marketing: Directions for Management, Varey, R. J., Lewis, B. R. (Eds.), pp. 43-60, Routledge, London, ISBN 9780415213189, 2000.
http://dx.doi.org/10.4324/9780203207352.ch3
Bell, S. J., Menguc, B., Stefani, S. L.: When Customers Disappoint: A Model of Relational Internal Marketing and Customer Complaints. Journal of the Academy of Marketing Science, Vol. 32, No. 2, pp. 112–126; 2004.
https://doi.org/10.1177/0092070303261467
Berry, L. L.: The Employee as a Customer. Journal of Retail Banking, Vol. 3, No. 2, pp. 33–44, 1981.
Berry, L. L., Hensel, J. S., Burke, M. C.: Improving retailer capability for effective consumerism response. Journal of Retailing, Vol. 52, No. 3, pp. 3–14, 1976.
Berry, L. L., Parasuraman A.: Marketing Services: Competing through Quality, Free Press, New York, ISBN 0-74326741-9, 1991.
Berry, L. L., Parasuraman, A: Services Marketing Starts from Within. Marketing Management, Vol. 1, No. 1, pp. 24–34, 1992.
Beyaz, R., Güngör, A. Y., Kiliçarslan, Ş.: The Effects of Banks’ Internal Marketing and Market Orientation Approaches on Performance. Süleyman Demirel Üniversitesi Vizyoner Dergisi, Vol. 12, No. 31, pp. 812–825, 2021.
Bhavani Devi, G., Geetha, S. N.: Role of internal marketing perception on customer orientation and mediating effect of job satisfaction among private bank employees in India. Research Journal of Commerce and Behavioural Science, Vol. 5, No. 11, pp. 17–24, 2016.
Bohnenberger, M. C., Schmidt, S., Damacena, C., Batle-Lorente, F. J.: Internal marketing: a model for implementation and development. Dimensión Empresarial, Vol. 17, No. 1, pp. 7–22, 2019.
Boukis, A., Kaminakis, K., Siampos, A., Kostopoulos, I.: Linking Internal Marketing with Customer Outcomes. Marketing Intelligence and Planning, Vol. 33, No. 3, pp. 394–413, 2015. doi 10.1108/MIP-02-2014-0024
Chami, A., Kaddeche, S.: The effect of internal marketing on knowledge sharing: a case study of Algerian National Bank BNA. Algerian Scientific Journal Platform, Vol. 7, No. 3, pp. 966–979, 2021.
Caruana, A., Calleya, P.: The effect of internal marketing on organizational commitment among retail bank managers. International Journal of Bank Marketing, Vol. 16, No. 2/3, pp. 108–116, 1998. doi 10.1108/02652329810213510
Chiu, W., Won, D., Bae, J. S.: Internal Marketing, Organizational Commitment, and Job Performance in Sport and Leisure Services. Sport, Business and Management: An International Journal, Vol. 10, No. 2, pp. 105–123, 2019. doi 10.1108/SBM-09-2018-0066
Collins, B., Payne, A.: Internal marketing: A new perspective for HRM. European Management Journal, Vol. 9. No. 3, pp. 261–270, 1991. doi 10.1016/0263-2373(91)90006-C.
Conduit, J., Mavondo, F. T.: How critical is internal customer orientation to market orientation? Journal of Business Research, Vol. 51, No. 1, pp. 11–24, 2001.
Crawford, J. C., Getty, J. M.: The marketing of services: A quality perspective. Journal of Professional Services Marketing, Vol. 8, No. 1, pp. 5–16, 1992.
Čavlin, M., Đokić, A., & Miletić, V.: Influence of liquidity and solvency on profitability of agroindustrial companies in the conditions of COVID-19. Economics of Agriculture, Vol. 69, No. 2, pp. ahead of print, 2022.
De Bruin, L., Roberts-Lombard, M., Meyer-Heydenrych, C.: Internal marketing, service quality and perceived customer satisfaction: An Islamic banking perspective. Journal of Islamic Marketing, Vol. 12, No. 1, pp. 199–224, 2020. https://doi.org/10.1108/JIMA-09-2019-0185
Donavan, D. T., Brown, T. J., Mowen, J. C.: Internal Benefits of Service Worker-Customer Orientation: Job Satisfaction, Commitment, and Organizational Citizenship Behaviors. Journal of Marketing, Vol. 68, No. 1, pp. 128–145, 2004. doi:10.1509/jmkg.68.1.128.24034
Ferdous, A. S., Polonsky, M.: The Impact of Frontline Employees' Perceptions of Internal Marketing on Employee Outcomes. Journal of Strategic Marketing, Vol. 22, No. 4, pp. 300–315, 2014. doi 10.1080/0965254X.2013.876077
Foreman, S., Money, A.: Internal Marketing: Concepts, Measurement and Application. Journal of Marketing Management, Vol. 11, No. 8, pp. 755–768, 1995. https://doi.org/10.1080/0267257X.1995.9964388
George, W. R.: The retailing of services: a challenging future. Journal of Retailing, Vol. 53, No, 3, pp. 85–98. 1977.
George, W. R.: Internal marketing and organizational behavior: a partnership in developing customer-conscious employees at every level. Journal of Business Research, Vol. 20, pp. 63–70, 1990. https://doi.org/10.1016/0148-2963(90)90043-D
Gounaris, S., Vassilikopoulou, A., Chatzipanagiotou, K. C.: Internal Market Orientation: a Misconceived Aspect of Marketing Theory. European Journal of Marketing, Vol. 44, No. 11/12, pp. 1667–1699, 2010. doi 10.1108/03090561011079837
Grönroos, C.: Internal marketing: An integral part of marketing theory, In: Marketing of Services, Donnelly, J. H., George, W. E. (Eds.), pp. 236–238, AMA, Chicago, ISBN 0877571481 9780877571483, 1981.
Grönroos, C.: Internal marketing – theory and practice, In: Services Marketing in a Changing Environment, Bloch, T. M., Upah, G. D., Zeithaml, V. A. (Eds.), pp. 41–47, AMA, Chicago, ISBN 9781613113134, 1985.
Grönroos, C.: Service management and marketing (Vol. 27), Lexington Books, Lexington, MA, ISBN-10: 0669200352; ISBN-13: 978-0669200355, 1990a.
Grönroos, C.: Service management: a management focus for service competition. International Journal of Service Industry Management, Vol. 1, No. 1, pp. 6–14, 1990b.
https://doi.org/10.1108/09564239010139125
Grönroos, C.: Service Management and Marketing: A Customer Relationship Management Approach, 2nd ed., Wiley, Chichester, ISBN-10:0471720348000, 2000.
Gummesson, E.: The New Marketing – Developing Long-Term Interactive Relationships. Long Range Planning, Vol. 20, No. 4, pp. 10–20, 1987a, https://doi.org/10.1016/0024-6301(87)90151-8
Gummesson, E.: Using Internal Marketing to create a New Culture–The Case of Ericsson Quality. Journal of Business and Industrial Marketing, Vol. 2, No. 3, pp. 23–28, 1987b, https://doi.org/10.1108/eb006032
Gummesson, E.: Service Design. The TQM Magazine, Vol. 2, No. 2, pp. n.d., 1990. https://doi.org/10.1108/EUM0000000003027
Haghighikhah, M., Khadang, M., Arabi, M.: Internal marketing: Employee satisfaction and word of mouth in Guilan’s Saderat bank. International Journal of Marketing Studies, Vol. 8, No. 2, pp. 147–158, 2016.
Hernández-Díaz, A., Calderon-Abreu, T., Amador-Dumois, M., Córdova-Claudio, M.: Internal Marketing and Customer-Contact Employees' Attitudinal Outcomes. Academia Revista Latinoamericana de Administración, Vol. 30, No. 1, pp. 124–143, 2017. https://doi.org/10.1108/ARLA-08-2015-0190
Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., Schlesinger, L. A.: Putting the Service-Profit Chain to Work. Harvard Business Review, Vol. 72, No. 2, pp. 164–174, 1994.
Hilal, M. I. M.: Internal marketing practices and employees work attitudes: an empirical examination in the banking industry in Sri Lanka. Towards Sustainable Future, pp. 122–n.d., National Centre for Advanced Studies in Humanities and Social Sciences Sri Lanka, Colombo, Sri Lanka, ISBN 978-955-4978-06-5, 2018. (Conference: Social Sciences & Humanities – IRSSSH, 20.12.2018). http://ir.lib.seu.ac.lk/handle/123456789/3737
Hwang, I. S., Chi, D. J.: Relationships Among Internal Marketing, Employee Job Satisfaction and International Hotel Performance: An Empirical Study. International Journal of Management, Vol. 22. No. 2, pp. 285–293, ISSN 0813-0183, 2005.
Ismail, W., Sheriff, N.: Validation of measurement model of internal marketing in banking sector in Yemen. International Academic Research Journal of Social Science, Vol. 1, No. 2, pp. 131–138, 2015.
Ismail, W., Sheriff, N.: Impact of Internal Marketing on Job Satisfaction among Bank Employees in Yemen. Journal of Marketing, Vol. 4, No. 2, pp. 210–227, 2016.
Kanyurhi, E. B., Akonkwa, D. B. M.: Internal marketing, employee job satisfaction, and perceived organizational performance in microfinance institutions. International Journal of Bank Marketing, Vol. 34, No. 5, pp. 773–796, 2016. https://doi.org/10.1108/ijbm-06-2015-0083
Kaur, J., Sharma, S. K.: Internal marketing: Scale development and validation. Vision, Vol. 19, No. 3, pp. 236–247, 2015. doi 10.1177/0972262915597088
Lings, I. N., Brooks, R. F.: Implementing and Measuring the Effectiveness of Internal Marketing. Journal of Marketing Management, Vol. 4, No. 14, pp. 325–351, 1998. doi 10.1362/026725798784959426
Lings, I. N.: Internal market orientation: construct and consequences, Journal of Business Research, Vol. 57, No. 4, pp. 405–413, 2004. https://doi.org/10.1016/S0148-2963(02)00274-6 https://eprints.qut.edu.au/31775/1/31775.pdf Accessed on: 2022- 07-2
Lings, I. N., Greenley G. E. Measuring Internal Market Orientation. Journal of Service Research. Vol. 7, No. 3, pp. 290–305. 2005. doi:10.1177/1094670504271154
Lings, I. N., Greenley, G. E.: The impact of internal and external market orientations on firm performance. Journal of Strategic Marketing, Vol. 17, No. 1, pp. 41–53, 2009.
https://doi.org/10.1080/09652540802619251
Maryono, M., Naili, F., Bulan, P.: Analysis of Internal and Relational Marketing Influences on Customer Loyalty through Customer Satisfaction in Bank Kalsel Sharia, Advances in Economics, Business and Management Research, Vol. 160, pp. 53–61, 2020 (The International Conference on Business and Management Research, iCBMR 2020). doi: 10.2991/aebmr.k.201222.008
Milanović, M. V.: Internal marketing as one of the factors of efficiency of the police organization, In: Thematic conference proceedings of international significance: Archibald Reiss Days, Đorđević, Đ. et al. (Eds.), Vol. I, pp. 431-439, Academy of criminalistic and police studies, Zemun, Belgrade, ISBN 978-86-7020-319-8, 2015.
Milanović, V., Radosavljević Njegić, K.: The impact of internal communication and employees’ identification with the organization on motivation, Matica Srpska Journal of Social Sciences, Vol. LXX, № 170, (2/2019), pp. 213–227, ISSN 0352-5732, 2019.
Miletić. V., Bingulac, Z.: Modern finance, Prometej, Belgrade, ISBN 978-86-515-0810-6, 2013 Savremene finansije. Prometej, Belgrade, ISBN 978-86-515-0810-6, 2013.
Musa, A., Ijaiya, M. A., Mustapha, Z. U.: The internal marketing in the last decade: A systematic review. IROCAMM-International Review of Communication and Marketing Mix, Vol. 2, No. 4, pp. 35–45, 2021.
Narteh, B.: Internal marketing and employee commitment: evidence from the Ghanaian banking industry. Journal of Financial Services Marketing, Vol. 17, No. 4, pp. 284–300, 2012. doi 10.1057/FSM.2012.22
Narteh, B., Odoom, R.: Does internal marketing influence employee loyalty? Evidence from the Ghanaian banking industry. Services Marketing Quarterly, Vol. 36, No. 2, 112–135, 2015.
Opoku, R. A., Atuobi-Yiadom, N., Chong, C. S., Abratt, R.: The impact of internal marketing on the perception of service quality in retail banking: A Ghanaian case. Journal of Financial Services Marketing, Vol. 13, No. 4, pp. 317–329, 2009.
doi 10.1057/fsm.2008.26
Parasuraman, A., Berry, L. L., Zeithaml, V. A.: Perceived service quality as a customer‐based performance measure: An empirical examination of organizational barriers using an extended service quality model. Human Resource Management, Vol. 30, No. 3, pp. 335–364, 1991.
Piercy, N. F., Morgan, N. A. Internal marketing: making marketing happen. Marketing Intelligence and Planning, Vol. 8, No. 1, pp. 4–6, 1990.
Piercy, N. F., Morgan, N. A.: Internal marketing – the missing half of the marketing program. Long Range Planning, Vol. 24, No. 2, pp. 82–93, 1991.
Piercy, N. F.: Customer satisfaction and the internal market: marketing our customers to our employees. Journal of Marketing Practice and Applied Marketing Science, Vol. 1, No. 1, pp. 22–44, 1995. http://dx.doi.org/10.1108/EUM0000000003878
Qaisar, F. S., Muhamad, N.: Internal marketing: a review and future research agenda. Asia Pacific Business Review, Vol. 27, No. 2, pp. 267-300, 2021. https://doi.org/10.1080/13602381.2021.1858590
Qiu, J., Boukis, A., Storey, C.: Internal marketing: a systematic review. Journal of Marketing Theory and Practice, Vol. 30, No. 1, pp. 53–67, 2022. https://doi.org/10.1080/10696679.2021.1886588
Rafiq, M., Ahmed, P. K.: The scope of internal marketing: defining the boundary between marketing and human resource management. Journal of Marketing Management, Vol. 9, No. 3, pp. 219–232, 1993.
Rafiq, M., Ahmed, P. K.: Advances in the Internal Marketing Concept: Definition, Synthesis and Extension. Journal of Services Marketing, Vol. 14, No. 6, pp. 449–462, 2000.
https://doi.org/10.1108/08876040010347589
Saha, A., Awal, M. R., Sadique, M. Z., Fouzder, H.: The Effects of Internal Marketing on Business Performance with Employee Relationship Quality as a Mediator: A Resource-Based Approach. International Journal of Asian Social Science, Vol. 12, No. (3), pp. 115–126, 2022.
Sarangal, K. R., Nargota, M.: Internal marketing, employee job satisfaction and employee engagement: a case of J&K bank. Pacific Business Review International Journal, Vol. 10, No. 4, pp. 80–89, 2017.
Sasser, W. E., Arbeit, S. F.: Selling jobs in the service sector. Business Horizons, Vol. 19, No. 3, pp. 61–65. 1976.
https://doi.org/10.1016/0007-6813(76)90053-7
Shiu, Y. M., Yu, T. W.: Internal Marketing, Organisational Culture, Job Satisfaction, and Organisational Performance in Non-Life Insurance. Service Industries Journal, Vol. 30, No. 6, pp. 793–809. 2010.
https://doi.org/10.1080/02642060701849840
Sohail, M. S., Jang, J. (2017). Understanding the Relationships among Internal Marketing Practices, Job Satisfaction, Service Quality and Customer Satisfaction: An Empirical Investigation of Saudi Arabia’s Service Employees. International Journal of Tourism Sciences, Vol. 17. No. 2, pp. 67–85, 2017. doi 10.1080/15980634.2017.1294343
Tansuhaj, P., Randall, D., McCullough, J.: A Services Marketing Management Model: Integrating Internal and External Marketing Functions. The Journal of Services Marketing, Vol. 2, No. 1, pp. 31–38, 1988. doi 10.1108/EB024714
Tortosa, V., Moliner, M. A., Sanchez, J.: Internal Market Orientation and its Influence on Organizational Performance. European Journal of Marketing, Vol. 43, No. 11-12, pp. 1435–1456, 2009.
https://doi.org/10.1002/hrm.3930300304
Varey, R. J.: A model of internal marketing for building and sustaining a competitive service advantage. Journal of Marketing Management, Vol. 11, No. 1–3, pp. 41–54, 1995. https://doi.org/10. 1080/0267257X.1995.9964328
Varey, R. J., Lewis, B.: A Broadened Conception of Internal Marketing. European Journal of Marketing, Vol. 33, No. 9, pp. 926-944, 1999. doi 10.1108/03090569910285869
Winter, J. P.: Getting your house in order with internal marketing: a marketing prerequisite. Health Marketing Quarterly, Vol. 3 No. 1, pp. 69–77, 1985.
Zdjelarić, P. P., Ćirić, M. R., Brkanlić, S.: Correlation between internal marketing and satisfaction of bank employees. Marketing, Vol. 48, No. (2), pp. 115–130, 2017.
Yusuf, G. O., Chin, T. A., Dawei, Z., Xiuli, H., Choon, T. L.: The Impact of Internal Marketing on Customer Orientation in the Banking Industry. Advanced Science Letters, Vol. 23, No. 9, pp. 9055–9059, 2017.
