ISSN 0798 1015

Vol. 40 (Issue 37) Year 2019. Page 28

Antecedents and Dimensions of Internal Branding: An Overview

Antecedentes y dimensiones de la marca interna: una visión general

SAHOO, Smruti Rekha 1 & MOHANTY, Sasmita 2

Received: 24/04/2019 • Approved: 22/10/2019 • Published 28/10/2019

Contents

1. Introduction

2. Literature Review

3. Methodology

4. Findings and Conclusion

Bibliographic references

1. Introduction

Nowadays, organizations exist in full ambiguity, changeable and dynamic environment. Due to advanced technology in workforce, organizational environment has become deeply dynamic. The most important feature of contemporary era is stable and amazing mutations which happen in environmental circumstances of organization. In this regard, for win the dynamic challenges, organization faces new direction in order to improve organizational performance to keep their long term brilliance. In this situation human resources are the main source of getting constant competitive advantage in organization (Yahyazadehfar, 2013). Properly maintain the existing employee and attract new talented employee to improve organizational performance through internal marketing ideas which measured the development of employees as an internal customer of an organization. The major reason is increasing awareness from internal customers and eliminating barriers for achieving organizational effectiveness. According to marketing point of view, every organization could focus on the internal customer’s needs because the total performance of organization depends on its internal customer’s effort (Foreman and Money, 1995).

2. Literature Review

2.1. Internal Branding

There is a maxim joyful employees can create happy customers (George, 1990) which indicates the connection among customer outcomes and role of internal customer. The main foundation of internal marketing is internal marketing orientation.

Internal marketing is a concept which in puerile stage is projected in the late 1970s and early 1980s. This concept is moved from external customers to focus on internal customers. Internal marketing is “The major thrust of the internal marketing concept is that by treating employees as internal customers, one can ensure higher employee satisfaction and, subsequently, the development of a more customer-conscious, market-oriented, and sales-minded work-force” (Gronroos, 1981). Internal marketing is the primary key to “the problem of delivering consistently high quality of service” (Berry qtd in Mishra, 2009, p.187, 188). This thought about internal marketing has been developed by Berry “because people were the most common form of service delivery, their actions probably had a major impact on customer acquisition, retention and migration and thus the definitive success of the firm”

From HRM point of view several authors pointed different definitions of internal marketing. Internal marketing holds the efforts of an organization in the form of recruitment, training, motivating, and giving reward to employees for their pleasing marketing behavior (Dunne and Barnes, 2000). Internal marketing is the job of recruiting, training and motivating the competent internal customers who desire to treat their customers well (Kotler, 2003 pp. 23). It starts training program to enhance the employees’ skills and knowledge and also improve the understanding level about market opportunities and upgrade their marketing skills about their services and abilities (Varey, 2001 pp. 217).

Internal marketing is a technique which is very useful in the internal marketplace. It is the application of persuasion strategies to convince internal customer that they are connected to the customer (Reardon and Enis, 1990, pp. 376). The main focus of internal marketing is the progress of marketing series in the internal marketplace, by using the common procedures used for external customers (Rafiq and Ahmed, 1993, pp. 84). Internal marketing holds several internal factors of a company such as internal product policy, pricing, sales and distribution, market segmentation and research, and lastly communication and sales promotion of product (Ozretic , 2004).

Internal marketing is the smartest strategy to challenge the attitudes and behavior of employees to understand the quality of the customer (Ballantyne , 2000, pp. 47). It can be seen as in the form of marketing orientation promotion (Varey, 2001, pp. 218). Internal marketing comes first before external marketing because it doesn’t make any brand promise to customer before the employee is ready to serve it (Kotler 2003, pp. 23).

Internal marketing is the source of competitive advantage in the internal as well as external market place. Internal marketing has the aim to attract, retain and motivate the employees on the basis of service oriented, caring attitude towards customer to help the perceived service quality and effectual external marketing of the firm as way to competitive advantage (Varey and Lewis, 1999). It is the figure of marketing in an organization which emphasizes on employees with internal actions that need to be changed or modified so as to enhance or improve the performance of external market place (Ballantyne ,2000).

Internal marketing is “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 organization” (Berry, 1981). “Internal marketing is the idea of treating the employees as internal customer, definitely ‘wooing’ employees” to create loyalty and desirability and also it is the strategy of determining job products which is healthy with human desires (Berry et al., 1991). Internal marketing is not only about the customer orientation roles but also an essential part of the organization’s success (Joseph, 1996). Internal marketing is a category of strategic management beliefs to attract, motivate, develop and retain leading employees by providing better quality work service and afford their needs (Denis, 1995 and Willson, 2003). Internal marketing is a method of hiring and maintaining employee motivation by which they provide better services to their customers (Kotler, 1991, p. 20). Internal marketing is a device which is very useful for changing the attitudes and behaviors of the employee (Gronoor, 1990; Varey, 1995). After Berry there is different definitions developed to clarify the concept in new version. The major conception behind the internal branding (IB) is there is an effect on internal customer, organizations and lastly on external customer satisfaction (Lings, 1999; Varey and Lewis, 1999; Rafiq and Ahmed, 2000; Ahmed et al., 2003; Ballantyne, 2003). Employees represent themselves as the brand for the external customers (Ahmed and Rafiq, 2003) and also they maintain and build the brand image to acquire organization’s success (Harris and de Chernatony, 2001). The main objective of internal branding is to achieve the configuration by promoting the brand inside the organization with the help of internal marketing practices (Drake et al., 2005). Internal branding mainly concentrates on improving the brand objectives, features and positioning of brand promise and providing unity between employees’ values and also designing a commitment behind the employees (Matanda and Ndubisi, 2013).

Internal branding has recently been identified to focus on the organization’s performance by fulfilling the customer’s expectations about brand by several functional activities. Currently, the concept of internal branding is captured by most of the researchers and practitioners. It is the element of internal marketing which straighten the responsibility of both marketing and HR managers and is used to goal the business’s internal market towards internal customer or employees (Speak, 2009; Mitchell, 2002; Mahnert, 2005).

Internal branding defines the actions functioning by a firm to make sure intellectual and emotional buy-in (Thomas et al., 1999) into not only the organizational culture, but also the brand personality inside organizational culture. A brand describes the features, attitudes, motivations, personality and emotions; not only for the internal customer but also for external customers that deals with the brand everyday and thus signify it in front of public in general and customers specially. The main aim of IB is the accomplishment of competitive driven through people, not through hub business practices and policies (Jacobs, 2003).

Internal branding defined as; “…the concerted, inter-departmental and multi-directional internal communications effort carried out in order to create and maintain an internal brand. Internal branding attempts to achieve consistency with the external brand and encourage brand commitment and the propensity for brand championship among employees. Internal branding is the reflection of the values and the realization of the promise of the brand internally and externally” (Mahnert and Torres, 2007, p. 56).

Sometimes it may be called as internal marketing (Miles & Mangold, 2004). In current literature internal marketing is defined as a concept that makes sure employees’ thoughts about the management’s care and concern about their desires (Abzari et al. 2011). Internal marketing is a strategic approach which attracts, motivate and maintain its employees and satisfying their needs by providing several job products (Dennis, 1995; cited by Azizi et al., 2012). Through internal branding Internal marketing expedites corporate strategy by making employees understand about organizational goal and objectives (Mahnert, 2005). Internal branding is a part of internal marketing which mainly focuses on the improvement and up gradation of the brand. Internal branding is a technically organized method, which helps to motivate and support employees’ satisfactory brand behavior activities in their regular work behaviors to help them convey a worth full message on the brand promise to customers (Matanda & Ndubisi, 2013). A holistic approach is needed for the success of internal branding and long term benefits (De Chernatony and Cottam, 2006; King and Grace, 2008). Holistic view approach includes the skills, knowledge and attitude of employee towards brand considerations for build the internal branding (Kings and Grace, 2008; Punjaisri et al., 2009). The skills and knowledge of employee about internal brand, affects brand attitude due to the psychological attachment of employee (ibid).

2.2. Dimensions of internal branding

There are several factors involved to enhance the knowledge of employees’ about the brand which will help appropriately to achieve the organization’s goals and objectives (Punjaisri and Wilson, 2011). The factors are proved that all are positively associated with internal branding named as: internal and external communication, training, leadership and both market and customer information, empowerment, reward system, perceived value congruence, HR involvement (Conduit & Mavondo, 2001; Aurand et al., 2005; Burmann and Zeplin, 2005; Punjaisri and Wilson, 2007, 2011; Lings et al. 2008; Punjaisri et al., 2009; Du Preez and Bendixen,2015; Chatman, 1991; Henkel et al., 2007).

Many authors have identified several attributes which is are directly measure the internal marketing concept such as inter-functional coordination and integration (Winter, 1985; Narver and Slater, 1990; Glassman and McAfee, 1992; Rafiq and Ahmed, 2000; Sincic and Vokic, 2007; Nahavandi et al., 2008), customer orientation (Gronroos, 1981; Hogg and Carter, 1996; Bansal et al., 2001; Naude et al., 2003), marketing-like approach (George, 1990; Hogg and Carter 1996), job satisfaction (George, 1990; Rafiq and Ahmed, 2000; Bansal et al., 2001; Nahavandi et al., 2008), empowerment (Gronroos, 1981; Berry and Parshuraman, 1991; Rafiq and Ahmed, 1998), employee motivation (Rafiq and Ahmed, 1998; Preston and Steel, 2002; Jaiswal and Saha, 2007; Nahavandi et al., 2008), quality of service (Berry and Parshuraman, 1991; Preston and Steel, 2002), employee development (Foreman and Money, 1995; Piercy and Morgan, 1989), organization’s vision (Foreman and Money, 1995), strategic reward (Ahmed and Rafiq, 2003; Jaiswal and Saha, 2007), internal communication (Ahmed and Rafiq, 2003; Sincic and Vokic, 2007), leadership (Ahmed and Rafiq, 2003; Jaiswal and Saha, 2007), training and development (Rafiq and Ahmed, 2000; Preston and Steel, 2002; Jaiswal and Saha, 2007; Nahavandi et al., 2008)

Table 1
Dimensions of Internal Marketing

2.2.1. Inter functional co-ordination and integration

It is defined as the different departments work together as one and it creates a smooth flow of communication without any confusion. This concept is defined that proper utilization of organization’s resources and creates a greater value for fulfilling the target of organization with the help of the staffs’ coordination (Narver and Slater, 1990). If an organization uses its resources effectively it will ensure that internal marketing integrates both personnel and marketing functions in which an employee becomes a main source of that marketing function (Glassman and Mcfee, 1992).

2.2.2. Customer orientation

Market and customer information is less used in the conception of internal branding. Employee and customer communication is especially important for service firms. Market and customer information refers to the information regarding employee-relevant brand information and also it can be stated as the offer of organizations to customer and market information (King and Grace, 2008). Employees’ skill and knowledge about the brand reflects both market and customer information which is observed through information by organizations. Employees’ brand promise exposed to market with a combination of good work environment and market and customer information (King and Grace, 2008).

2.2.3. Marketing-like approach

Marketing-like approach is basically depend on customer orientation, recognition of marketing function and profit orientation to communicate or aware the needs of the market to main corporate departments. A dynamic marketing approach helps to motivate the employees for service and customer oriented (George, 1990). Thus, the adaptation of marketing behavior retain at the core part of internal marketing.

2.2.4. Job satisfaction

It is nothing but what the employee feels about their work environment? As all the dimensions if completely do their role perfectly then automatically one employee feel satisfied with their job it means the extent to which the employee like or dislike in the job.

2.2.5. Empowerment

It is an important factor in an organizations, there is a true supports and encouragement to get a job and able to understand organizational goal. Empowerment gives certain autonomy to employees and responsibility to make own decisions when giving the service to customers (Murari, 2015). By allowing employees empowerment can make faster decisions as a result it increases organizations’ productivity and improve performance (Berry and Parasuraman , 1991).

2.2.6. Quality of Service

It is the form of an attitude but not similar with satisfaction but its consequences come on or after the contrast of expectation with performance. In internal marketing service quality is a major component because high service quality will form it easier and ensure intended for employees to spot them as ready to sell their product to target customer.

2.2.7. Employee training and development

Training is other factors which develop the employees’ skills and knowledge about brand (Punjaisri and Wilson, 2011). It is a systematic structured that help in the development of employees’ skills, knowledge and attitude to perform better in a given task. Training is improved the employees’ brand promise contradiction with the brand values, orientation and development (Punjaisri and Wilson, 2007, 2011; King & Grace, 2008; Punjaisri et al., 2009). For fulfilling the brand promise, training is mainly provided by organization to ensure that their employees gain appropriate skills and knowledge (King & Grace, 2008). Training and education play a vital role in the internal branding practices. Training is the most important human resource management practice to develop and strengthen brand supporting behaviors (Punjaisri and Wilson, 2007). If the internal marketing is appropriately functioning in company, employee must be perfectly trained and to accomplish its services and expectations towards customer (Piersy and Morgan ,1991).

After getting the training the employees are very clearly understood that what the expectations of organizations from them are. If the employees are working in good environment then it is an additional benefit for organization for increasing the productivity of employee (King and Grace, 2008). Work environment is a factor which helps to an employee how to properly execute their job? Here this socialization process helps to a new employee to become an effective or productive employee (King and Grace, 2008). If the employees are satisfied with work environment then there is stronger effect of internal branding on employees’ brand attitude if employee are not satisfied with the work environment then the organization should make stronger internal branding (King and Grace, 2008; Punjaisri and Wilson, 2011). Work environment is only affected by interpersonal relationship of employees with their colleagues and leaders, acknowledgment for their job with liberty of preference their job (Punjaisri and Wilson, 2011).

2.2.8. Employee Motivation

It is the movement attribute that moves an individual to do or not to do something. It is the act of workers to do in desired manner. Understanding and differentiation give importance on how the organization distinguish each employee is unique than other and pay attention to what the employees should have to say and how treat them individually. Internal marketing is required to boost the level of motivation by offering the job as in the form of product and try to sell it to the internal customers’ benefit.

2.2.9. Organization’s vision

Organization’s vision is the major component to attract the internal customer to build internal branding. The internal branding reflects in the firm’s vision. Firstly the internal customer understands and properly interacts with the management regarding mission and vision of the organization and through this vision employees can fulfill the brand promise as well as external customer expectations.

2.2.10. Strategic reward

It is a motivational factor through an employee can achieve beyond expectations whether it is motivated by internal or external factors and involved in uninterrupted improvement that help to grow the organization towards definite business goals. By implementing the strategic reward in internal marketing that will help in acquiring the objectives of organizations such as employees’ satisfaction and motivation of employees (Rafiq and Ahmed (2003).

2.2.11. Internal and External communication

Internal brand communication is regarding the brand information communicated with employees and informing them the core aspects of brand (Punjaisri and Wilson, 2011). It authorizes the creation of employees with a greater sense of ownership, accountability and responsibility. Internal communication plays an important role in internal marketing function. Internal communication is the key factor to understand all the information or knowledge among employees. Employees’ brand attitude is affected by external communication which is the information regarding brand to the external constituencies (Du Preez and Bendixen, 2015).

2.2.12. Leadership

Work environment is need to be considered by leader although it maintained by HR department (Liu et al., 2015). In the organization, the main responsibility of leader is to create and maintain good work culture that will help the employees to easily incorporate and know the brand values (ibid). Leader has the duties of brand promises and put into proceedings and to provide information, knowledge and network (Chapleo, 2013). The leader should motivate the employees to live the brand values (Vallaster and De Chernatony, 2005).   

2.2.13. Human resource involvement:

It is the main instrument for delivery of brand promise through internal customers. External customer expects from the organization on such internal factors like internal service quality, employee retention and employee satisfaction. By fixing the effective systems inside the organization, the management must engage its employees in its strategic and operational plan. The positive engagement of employees in the brand, represents the brand qualities to external customer is frequently referred to internal branding (Keller, 2003; D’ Innocenzo, 2002; Mitchell, 2002).

2.2.14. Perceived value congruence:

It is the value congruence refers to how an individual’s value counterpart with their organization’s value which builds the internal brand. Brand supporting attitude and behaviors are moderated by individual’s personal factors or the working environment due to the effect of internal branding. (Ahmed et al. 2003; Punjaisri and Wilson, 2011). Employees are more consensuses with organizational values as well as brand values at the time of delivering service value to external customers (Aurand et al., 2005; Foster et al. 2010). Subsequently, perceived value congruence between organizational and personal values leads to job satisfaction, intention to stay, and person organization fit in the employment (Zimmennan and Johnson, 2005; Edwards and Cable, 2009).

3. Methodology

A set of previous literatures are collected from secondary sources i.e from articles, magazines and journals etc. The study is totally conceptual which is based on the antecedents and different dimensions of internal branding given by different researchers.

3.1. Limitation of the study

The study only focuses on research studies past literatures on internal marketing or internal branding. Therefore, the results are limited in their generalizations. However, considering the minimality of such studies and only the antecedents and limited dimensions are studied.

4. Findings and Conclusion

This paper provides a comprehensive idea of IB from the notion of internal marketing. This study also shows the determinants of internal branding namely human resource involvement, reward and motivation, internal communication, value congruence, leadership, empowerment, training, work environment and job satisfaction are. High involvement of employee, high motivation, proper communication, empowerment and training has positive consequences to build stronger internal branding.

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1. Research Scholar, Institute of Business and Computer Studies, Siksha O Anusandhan (Deemed to be University), Bhubaneswar, Odisha-751030, India, Email: smrutirekha001@gmail.com

2. Associate Professor, Institute of Business and Computer Studies, Siksha O Anusandhan (Deemed to be University), Bhubaneswar, Odisha-751030, India, Email: sasmitamoh@gmail.com