Employee Motivation as a tool to implement internal Marketing.

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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.

33
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.

34
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.

36
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