Internal Marketing Practices And Employees Productivity In Public Institutions In Nigeria

Project and Seminar Material for Marketing

Internal Marketing Practices And Employees Productivity In Public Institutions In Nigeria


The importance of internal marketing in the achievement of strategic business objectives in the service industries. This study had major objectives to see the effect of internal marketing on employees’ productivity by taking public institutions of Nigeria akwaibom as case study. Data was collected structured questionnaires which was self-administered. The response rate was 93%. Data was analyzed by using a correlation and multiple regression presented in tables. The study found out that all of the surveyed public institutions of Nigeria akwaibom indicated that each independent variable has a significant relation on the employees’ productivity. From the result applying internal marketing in the bank has a positive effect in employees’ performance. It is recommended that Public institutions in akwaibomshould Appling internal marketing strategies as one strategies in order to have satisfied employees, customer oriented, good coordination with in the bank finally the strategies can have a positive result on productive employees. In return if employees are productive the bank can deliver a quality service and easily achieve organizational objective.

Chapter One

1.0 Introduction

1.1 Background of Study

Internal marketing strategy is a concept that is aimed at driving the internal firms product personified in the employees. Therefore, this concept shares similar ideology with the theory of management by objective, which is aimed at integrating the employees goals and objectives into the firms overall objective to meet a congruency as to achieve the corporate goal and objective. We therefore, argued that without the actualization of the personnel objectives a firm will not achieve its maximum goals, even when it seems the goal is been achieved, the employee will on the other hand devise its own strategy of achievement, which eventually leads to nepotism; fraud; insubordination to the ground norms of the system.

An overview of internal marketing conceptual evolution is provided in other to justify the tacit and explicit support internal marketing has enjoyed in literature over the years. Rafiq and Ahmed (2000) in their observation classified internal marketing development in three separate phases, they are: the employee satisfaction phase; the customer orientation phase; and the strategy implementation or what they otherwise called the change management phase. The early definition of internal marketing through the customer orientation stance was based on a total quality management concept which focused on the firms service delivery process (Perry, 2008). In other words organizations were more interested in producing quality goods for its target markets; rather than concentrating on the personnel’s who man this process. The underlying theory is that effective service delivery requires motivated and customer-conscious employees (Gronroos, 2002).

Berry and Parasuraman (2001) defined internal marketing as viewing employees as internal customers; viewing jobs as internal products that satisfy the needs and wants of these internal customers while addressing the objectives of the firm. This employee satisfaction phase recognizes the complex nature of services marketing and its potential impact on IM in maximizing quality services delivery during buyer-seller interactions.

Rafiq and Ahmed (2000) defined internal marketing as planned effort using a marketing-like approach to overcome organizational resistance to change; align motivate and inter functional co-ordinate as well as integrate employees towards the effective implementation of corporate and functional strategies in order to deliver customer satisfaction through a process of creating motivated and customer oriented employees. Despite the different definitions of the term, it is generally agreed that the firm must engage first in marketing its internal customers (employees) if marketing goals must be achieved on its external customers.

In other words, by fulfilling employee needs, the firm produces certain employee outcomes which would in turn lead to higher satisfaction and loyalty from customers. Self determination theory proposes two types of motivation, extrinsic and intrinsic. Extrinsic motivation refers to behaviors that are performed because of the externally administered rewards that would result from the system. An extrinsically motivated person carries out actions in other to gain material or social benefits (Bateman and Crant, 2005).

Intrinsic motivation refers to motivation that comes from within or from the activity itself. While the intrinsically motivated person carries out actions for its sake and for its own rewards than in the hope of external benefits. Examples of intrinsic factors include interesting work, recognition, growth and achievement (Shadare and Hammed, 2009). Organizational commitment reflects a psychological bond that an individual identifies with an organization (Joo, 2008). Organizational commitment according to Malhotra and Mukherjee (2003) quoting Greenberg and Baron(2007) state that organizational commitment is the extent to which an individual identifies and is involved with his or her organization and/or is willing to leave it.

Organizational commitment reflects the attitudes of the firm’s towards its employees (Malhotra and Mukherjee, 2003). Mowday, Steers and Porter (2002) identified three characteristics of organizational commitment: (a) a strong belief in and acceptance of the organization’s goals and values; (b) a willingness to exert considerable effort on behalf of the organization and; and (c) a strong desire to maintain membership in the organization. While employee performance is the measure of employees input in relation to his output aimed at meeting the firms overall goals and objectives.

Ivancevich and Matteson (2006) suggest that work performance is a function of three variables which includes: knowledge and skills; motivation and workload and tools and climate. Therefore an employee with the right knowledge and skills, who is motivated and has a work load that, is in congruence with his/her skills, and has the right tools as well as good organizational climate would perform well on the job. This view was supported by Cummings and Schwab (2003) who suggest that employee performance is a function of the influence of environmental variables via their influence on performance determinants like motivation and ability.

Employee work performance can therefore be said to be a product of two basic factors: employee competence and organizational factors Greene et al (2004). Therefore the purpose of this paper is to empirically validate the relationship between internal marketing orientation and affective organizational commitment on employees’ performance in the Nigerian aviation sector.

1.2 Statement of the Problem

Internal marketing practice is one powerful tool that is used in bringing out the best in the best in the public institution staff. But it is sometimes pathetic in the sense that there is lack of understanding about the ownership and the application of Internal Marketing practices, probably due to lack of competent hands in the institution; could also be that there are no funds to foster the practices in the institutions. Finally, several researches has been carried out on the impact of internal marketing strategies but not even a single research has been carried on internal marketing practices and employee’s productivity in public institutions in Nigeria.

1.3 Aims and Objectives of Study

The main aim of the study is to examine internal marketing practices and employees productivity in Nigeria. Other specific objectives of the study include;

  1. To determine the factors affecting internal marketing practices and its effect on employees productivity.
  2. To determine the effect of internal marketing practices on employees productivity.
  3. To determine the extent to which internal marketing practices affects employees productivity.
  4. To determine the factors affecting employees productivity in public institutions in Nigeria.
  5. To proffer possible solutions to the problems.

1.4 Research Questions

  1. What are the factors affecting internal marketing practices and its effect on employees productivity?
  2. What is the effect of internal marketing practices on employee’s productivity?
  3. What is the extent to which internal marketing practices affects employee’s productivity?
  4. What are the factors affecting employee’s productivity in public institutions in Nigeria?
  5. What are possible solutions to the problems?

1.5 Statement of Research Hypothesis

H0: Internal marketing practice has no significant effect on employee’s productivity.

H1 Internal marketing practice has a significant effect on employee’s productivity.

1.6 Significance of Study

The study on the internal marketing practices and employees productivity will be of immense benefit to the entire public institutions in Nigeria in the sense that it will educate the management of an organisation to give room for internal marketing practice where the employee’s competencies can be developed for the benefit of the organisation or institution. More so, it will enable the institution to put in more fund in other for the internal marketing practice to be a success; when funding of the practice is eluded, it tends to bring about poor performance in productivity of the institution. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.

1.7 Scope of Study

The study on internal marketing practices and employee’s productivity is limited to public institutions.

1.8 Limitation of Study

Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint

The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 Definition of Terms


Being within something

Marketing Practice

Is a process that involves a product or service’s attributes, pricing, distribution and promotion.


A person employed for wages or salary, especially at non-executive level.


This describes various measures of the efficiency of production. It measure is expressed as the ratio of output to inputs used in a production process

Public Institution

The name that is applied to a school, college, courthouse, library, hospital and other place that is run for the public to use.

Chapter Five

Conclusion and Recommendation

5.1 Conclusion

In the service industry, human resources are the only assets that need to be nurtured generously. Many organizations corroborate that their employees are their most valuable resource. For this reason, it is essential that the employee is motivated to consistently deliver a high quality service experience to the customer. The implementation of an internal marketing program ensures that motivation is at the forefront of managements’ priorities. Throughout this study, effort have been made to see the effect of internal marketing on employees’ productivity. The finding of the study answers the research objective as posed in chapter one. The commercial objective is the see the relation Motivation and satisfaction with employees’ productivity. Enhancing employees felling by applying different Motivational package that can help employees to do their best. But the management should confirm those different package reach the right employees at the right time. Because when employees are motivate and satisfied productive both variables have positive relation .The second objective is to see the relation customer oriented and customer satisfaction with employees’ productivity. Because of the intense computation in financial market of Nigeria employees has to be customer oriented. If employees are Customer oriented employees can satisfied external customer, this means if the service giver and service user have a good interaction it can create an opportunity for the employees to perform a good job for contribute to service user to come back. The third objective is to see the effect of Inter functional coordination and orientation have a positive relation on employee’s productivity. Coordination between front office with back office, coordination between management and employees have significant effect on employees productivity when employees are close to internal information and coordinate with their job they can easily deliver quality service. Because coordination and integration have a significant relation with employees’ productivity. The third objective was to find out the effect of internal marketing element on the service quality. From the respondents, internal marketing has a significant effect on bankers’ productivity. If the bank practices internal marketing element within the organization, it will have a positive effect on employees’ productivity. The last objective of the study is to see the role of internal marketing on employees’ productivity. From the correlation table, we can understand there is variation in the effect of internal marketing element on bankers’ productivity, and the empirical evidence in this research suggests that internal marketing elements have relations with performance of employees.

5.2 Recommendation

Based on the major findings, which are discussed in the previous sections. Internal marketing have a significant relation with employees’ productivity. And also each independent variable has a positive effect on the employees’ productivity. Having internal marketing strategies as key strategies in management process can has a positive effect on the employees’ performance. Based on the above finding the following recommendation is made. public institutions must develop and manage an effective internal communication system aimed at creating awareness, and enhancing understanding among staff regarding internal marketing. Public institutions in akwa ibom should convert internal marketing as a strategy into their core operations and systems to meet employees’ demands and achieve the bank goals. Their employees shall show their sincere organizational commitment and customer orientation. Effective internal marketing programs require that the bank is willing to invest in adjusting its culture and in adopting the concept.

In order to get high service quality

Provision of excellent service to customers is resulted from satisfied employees. When an organization uses internal marketing strategy, it will improve employee’s effort, commitment, involvement and job satisfaction and productivity. Additionally, employees’ superior performance contributes to bank performance and will influence external customer perception of service quality.

In order to develop inter functional coordination and market like approach

The management must consider internal environment as a commercial market. By deploying the marketing tools, the management has to try its best to minimize the gap that can bring challenge for employees to do their best. Especially from the statistics above, we can conclude that those two elements have main significance in employee’s productivity. Therefore, public institutions should develop and manage an effective internal communication and coordination system aimed at creating awareness and enhancing understanding among staff with regard to internal marketing. This also helps to build market like approach in organization. For this reason, applying internal marketing strategy within the organization can play significant role.

In order to achieve organizational goal and having competitive advantage

Public institutions has to apply marketing tools in both internal and external market. Internally, it starts from accepting employees as a customer. The practice of internal marketing in the banking sector can produce a meaning full result in the productivity of employees because internal marketing element and employees’ productivity have a positive relation. In order to increase the level of customer retention, organizations put more attention on satisfying employees’ demand, commitment and inspiration in executing their duties. By doing this, the bank can push the employees to change their attitude in providing quality of service to customers.

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