In services and relationship marketing, what is meant by internal marketing?

Introduction / Context:
Internal marketing is especially important in services marketing and relationship based businesses, where employee behaviour strongly affects customer satisfaction. The idea is that a company must successfully market its vision and values to employees before it can effectively market to external customers. This question explores the definition of internal marketing and its role in achieving high service quality.

Given Data / Assumptions:

• Employees interact directly with customers and influence the customer experience.
• Motivated and well trained employees are more likely to deliver high quality service.
• Internal communication, training, and recognition programs can influence employee attitudes and performance.
• Internal marketing aligns employees with the brand promise made in external marketing.

Concept / Approach:
Internal marketing means viewing employees as internal customers and their jobs as internal products that should satisfy their needs and aspirations. Management must ensure that employees understand the company’s mission, feel valued, and have the skills and tools to serve customers effectively. This involves recruitment, training, internal communication, empowerment, and reward systems consistent with desired service behaviours. When internal marketing is strong, external marketing promises are more likely to be fulfilled in daily customer interactions.

Step-by-Step Solution:
Step 1: Recall that internal marketing is part of the broader concept of holistic marketing, which includes internal, integrated, relationship, and performance marketing. Step 2: Understand that employees must buy into the company’s goals and service standards for customers to experience consistent quality. Step 3: Recognise that internal marketing activities include training, internal branding campaigns, feedback systems, and incentive programs. Step 4: Compare the options and identify the one that describes employees as internal customers and jobs as internal products, supported by training and motivation. Step 5: Select that option as the correct definition of internal marketing.

Verification / Alternative check:
Imagine a hotel chain that spends heavily on external advertising promising friendly, responsive service but neglects staff training and treats employees poorly. Customers will quickly notice a gap between the promise and the reality. In contrast, a hotel that invests in staff training, empowerment, and recognition tends to deliver better service, matching its marketing claims. This example illustrates how internal marketing directly impacts external customer satisfaction.

Why Other Options Are Wrong:
Option b misinterprets internal marketing as using internal networks to reach external buyers, which reverses its meaning. Option c focuses on selling shares to employees, which is a financial practice (employee stock ownership) and not internal marketing. Option d equates internal marketing with internal accounting and budgeting, which do not directly address employee motivation or customer service.

Common Pitfalls:
Organisations sometimes focus heavily on external advertising while neglecting employees’ needs, resulting in inconsistent service and broken promises. Another pitfall is treating internal marketing as a one time orientation program rather than an ongoing culture building effort. For sustainable success, companies should view internal marketing as a continuous process of aligning people, culture, and systems with the brand promise.

Final Answer:
Internal marketing is the practice of treating employees as internal customers and jobs as internal products, and working to train, motivate, and support employees so that they can deliver better service to external customers.