Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Analysis of the Internal Marketing Tactics Employed by Mobilink and Telenor
Zobia Khalid1, and *Dr Khalid Mughal2
1
MS Scholar, Preston University, Islamabad, 2Professor, Preston University, Islamabad,
*drkhalid0@gmail.com
Abstract
This paper examines the impact of internal marketing practices employed by two services
providing firms to build the internal environment required for sustain the internal branding
process. Top management, culture, politics and internal marketing practices are
independent, moderating, intervening and dependent variables respectively. The analysis is
based on primary data collected from Mobilink and Telenor Pakistan. The results show that
both the companies do not employ internal marketing practices intentionally; however, they
do involve rigorous recruitment process, internal communication which reduces the turnover.
They invest in people on training, recognition and rewarding. Employee participation leads
to job satisfaction and loyalty to the firm.
Keywords: Internal customer; internal marketing; internal communication; turn over; job
satisfaction
1. Introduction
The marketplace heavily depends upon involvement and contribution of employees who
play a vital role in long-term success in serving customers and achieving customers’
satisfaction (Dunne & Barnes, 2000). Customer-oriented employees in the organization
make a significant difference to its competitive position in the market (Varey, 2001).
Satisfied employees are integral part of an organization for satisfied customers.
(Rosenblunth & Peters 1992, George, 1977). Ewing & Caruana, (1999) go even further saying
that the needs of the customer should be placed second to those of employees. Both
academicians and practitioners agree to the concepts of internal marketing.
Purpose of Study:
The objective of this study is to gain insight to the existing research and to apply this
concept in the Pakistani companies. The project specifically focuses on the burgeoning
telecom market of Pakistan which comprises of two multinationals i.e. Mobilink and
Telenor.
The idea is to analyze the existing internal marketing techniques undertaken by these
companies. The recommendations come from a comparison of the practices with the
contemporary techniques undertaken in the west. This project could provide much needed
guidance to the other companies as to how to build the internal environment required
sustaining the internal branding process.
1.1. Problem Statement
The concept of internal marketing has gained wide acceptance in companies around the
world, however few scholars have examined the existence and implementation of this idea in
Pakistani organizations thus there is need to study this phenomenon further.
1
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
2.
Literature Review
2.1. History
The four P’s approach has limited application in services (Dunmore, 2002). During the last
few decades service oriented approach has emerged (Irons, 1997). Services industry attracts
direct interaction between customers, employees and delivery chain. The customers
compare services, not physical products. The service firms always do so, but today all firms
should follow, with few exceptions (Grönroos, 2000).
2.2 Internal Marketing (IM)
Mid 1970’s witnessed the concept of internal marketing as a tool for achieving consistent
service quality (Ahmed & Rafiq, 2002 .Presently, the concept is not limited to the service
industry only.
In a definition of internal marketing made by Berry and Parasuraman (1991, p. 151) this fact
gets illustrated:
“Internal marketing is attracting, developing, motivating, and retaining qualified employees
through job-products that satisfy their needs. Internal Marketing is the philosophy of
treating employees as customers…and it is the strategy of shaping job-products to fit human
needs”.
The overall purpose of internal marketing is explained by Grönroos (1983) in three steps:
 To place appropriate employees in management positions to contact customers.
 To retain good and appropriate employees.
 To motivate employees to be customer oriented, marketing oriented and interactive in
marketing process.
2.2.1 IM and HRM
As articulated by Glassman and McAfee (1992), Varey (2001), and Dunne and Barnes (2000),
propose that the concept of ‘human resource as customer’ reflects the common roots of
marketing management and human resource management within psychological theory” (p.
192). Internal marketing to some researchers is to enhance effectiveness of human resource
management (Ewing & Caruana, 1999), which implies the subordinate position of internal
marketing in relation to HRM.
2.2.2 IM and IC
Since internal marketing covers all contacts with internal stakeholders internal
communications plays key role as a subordinate concept of internal marketing (Dalton &
Croft, 2003, p. 65). Dortok (2005) explains that successful internal communications
strategically encourage employees to a ‘value adding attitude. Moss et al., (1997 and
Dolphin, 2005), consider that internal communications enable the front-line personnel to
deliver a quality product or service. This implies that the link between IM and IC exists.
2.2.3 Common characteristics and main differences between IM, IC & HRM
These three concepts have the following common characteristics: (1) they are all essential
to achieve corporate goals; (2) strategic to the business results; (3) aim and lead to more
satisfied, loyal and productive employees; (4) they are all based on a win-win paradigm; and
(5) oriented towards the same target group of employees
2
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
3. Research Methodology
The initial step was to brain storm ideas in order to come up with one topic for research.
From a number of options, I chose internal marketing as a broad area. Then after further
research, it was narrowed down to analysis of internal marketing practices of top telecom
companies of Pakistan.
3.1 Type of Research Methodology
The research that I have conducted on the topic is mainly quantitative. The variables chosen
are shown in the following schematic diagram.
Independent
Moderating
Intervening
Top
Management
Support
Dependent
Internal
marketing
practices
Organization
al culture
Organizational
Politics
Figure 1: Schematic diagram-Research Variables
3.1.1. Variable Description
Following is a brief description of the four variables:
 Top management support: Top management support is the key to successful
internal marketing. It is difficult for the middle management to pursue anything
without the continuous support from the top. The concept of internal marketing
revolves around employees. Especially in case of services, it is employees who create
the impact. Therefore, it is extremely important to focus on their well being in order
to transfer the healthy impact to external customers.
 Organizational culture: The organizational culture must be conducive for
implementing any internal marketing tactics. In order to bring any change to the
existing practices, it is extremely essential to make in a participative process where
employees pitch in their views so that the change results in employee satisfaction
and motivation.
 Organizational Politics: An intervening variable, organizational politics plays a crucial
role in the proper implementation of any internal marketing practice. No matter how
hard the top management tries, it is difficult to control the impact of organizational
politics on the employee’s morale and job satisfaction.
3
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013

Internal marketing practices: It is a dependent variable. Introducing anything new or
make changes to the existing practices requires approval from the top management.
These practices require considerable human and financial investment therefore if
the top management is willing to put in the effort, time and money into this process
only then can it be successfully pursued.
3.2. Limitations
The research was only limited to employees of Telenor and Mobilink in Islamabad. The research
could have been more comprehensive if it had been carried out in other cities too. Time
limitation, on the other hand, also constrained the research to some extent.
4. Findings & Analysis
Following is the analysis along with the findings. The questionnaire included questions on
various topics i.e. recruitment, retention, training, employee empowerment, organization
culture, performance management, rewards and recognition. An interview with the HR
executives was also conducted. Internal marketing techniques employed by both the
companies were discussed. Both companies have not intentionally employed internal
marketing practices; however they do consider their employees as their biggest assets. The
responses have been interpreted in the light of hypothesis.
Hypothesis I: If a company uses various means for recruiting and selecting employees then it
has a rigorous recruitment process.
Findings
Average number of selection steps in the recruitment process at Mobilink is four and at
Telenor is three. A meager 2% at both places said that average rounds were more than five.
36% believed that five was the average at Mobilink whereas only 2% percent at Telenor said
so (Exhibit: 1)
Management of both the organizations involved the concerned manager in the hiring
process. In more than 60% of the cases, manager’s opinion is elicited. In 17% cases in
Mobilink and 14% cases in Telenor, involvement of managers depends upon their own
availability and the type of the job for which the candidates are called. (Exhibit: 2)
Analysis
Five rounds are quite sufficient to gauge an applicant’s caliber. Four selection rounds after
preliminary assessment of application forms appears to be quite a reasonable number
especially for middle level management. The findings are in line with Berry and
Parasuraman (1991) theory that smart internal marketers attract potential candidates
through different sources and, interview them on multiple occasions. It is however
important to design the rounds in a manner that the candidate can be judged to the
maximum extent.
Result: Hence the hypothesis is true.
Hypothesis II: Turnover is reduced in organizations where bosses frequently communicate
with their employees.
4
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Findings
In both cases majority said yes. However at Telenor the percentage of people saying ‘no’
was quite alarming. 31% of the whole sample said they did not sit with their supervisors to
set their goals.(Exhibit:3)
Feedback from immediate supervisor was another question. Majority at Mobilink marked
once as number of times feedback is given by the supervisor. Almost 65% at Telenor
received feedback from supervisor once a year. (Exhibit: 4)
Informal interaction between employees at both places was also judged by a question. Most
of the respondents at Mobilink resorted to always and usually. Sometimes and usually was
the answer of most of the Telenor employees. The percentage of people at Telenor
choosing rarely and never was more than those at Mobilink(Exhibit:5).There is a possibility
that when supervisors set the annual goals for the employees without consulting them, it is
difficult for the person to achieve it. This combined with less feedback results in low job
satisfaction.
To check out the possible reasons for turnover, the employees were asked what would be
the most likely reason of leaving their job. The response from Mobilink was quite different
from Telenor. Majority at Mobilink said the reason would be stressful job followed by
relations with supervisors and personal reasons. Though the people at Telenor feel that
relations with supervisor were the most likely reason. Stressful job was the second reason
followed by low salary. (Exhibit:6)
Analysis
Telecom sector in Pakistan is burgeoning. Every now and then new players are coming and
the competition is leading to low average revenue per user (ARPU).The possible reasons for
turnover in all organizations vary according to the opportunities in the sector, the economic
environment, individual reasons, remuneration or the internal atmosphere of the company.
For a firm to stand out, it is essential to provide a conducive environment where employees
are communicated with the company goals and strategies. This would help them to bring in
new ideas, improve the workflows and help the firm compete in the market.
Result: The above hypothesis stands true because we can observe that communication at
Mobilink is better than Telenor therefore people are most likely to leave due to stress rather
than relations with supervisor.
Hypothesis III: Organizations with a long term focus on training, development and
performance invest in people.
Findings
Financial investment in employees through trainings not only improves their skills and
capabilities but also contributes to job satisfaction. 54% employees at Mobilink said they
received soft and hard skills training frequently whereas only 74% at Telenor said so. It is
quite evident that Telenor spends more on employee grooming (Exhibit:7).
No specific training evaluation measures are employed by both the organizations. it was
found out that job rotation was the maximum Mobilink did in this regard but Telenor
actually sends employees for foreign assignments. For these assignments, however
5
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
individuals have to resign from Telenor, Pakistan and upon their arrival after completion of
the assignment; they have to reapply for any positions open here. Informal mentoring to
some extent existed at both places however there was no concept of succession planning in
the companies.
Question related to career development at Mobilink and Telenor asked employees about
the probability of receiving higher education financed by their firm. The employees were not
very optimistic about this issue. More than 85% people in both cases believed that the
probability of being sent for higher education was not more than 20%.No more than 8%
people in both the cases said the probability is 40%.Only 2% people thought there were 80%
chances that this can happen (Exhibit:8)
Analysis
People at Telenor appeared slightly more optimistic probably because Telenor’s trainings
are very frequent. Both the companies do not do substantial investment on employee
training and development. Employees in 80% of the cases in both the companies found little
application of their trainings in their daily work.
Result: This means these firms do not have a long term focus. They train employees to
address their current needs. Therefore, this hypothesis is true.
Hypothesis IV: Continuous recognition of employees through rewards by the management
results in high levels of job satisfaction.
Findings
Recognition of employees through rewards either monetary or non monetary both takes
place at Mobilink and Telenor.91% at Mobilink and 82% at Telenor are monetary rewards
(Exhibit: 9). Monetary rewards at both the places are given annually in the form of bonuses
and incentives. Though most of the work occurs in teams, the rewards are usually individual.
The incentives are a once a year process at both the organizations.
at mobilink 68% and 42% at telenor feel that they are recognized as inidivduals.22.86% feel
employees are rarely recognied at Mobilink and 11.43% at Telenor think the same.8% at
Telenor also believe employees are never recognized. Almost 68% of Mobilink’s employees
are satisfied with the incentives they get whereas 57% at Telenor think their bonuses and
increments are sufficient.2% at Mobilink believe that system is unfair and inequitable.28%
people did not register any strong comment and resorted to a neutral opinion whereas 42%
at Telenor marked neutral as the rate of their satisfaction (Exhibit: 10)
Analysis
Employees’ recognition is not satisfactory. One possible reason for this is that most of the
incentives at these companies are individual despite working in teams. At times, employees
who work a lot in teams do not get their due share in such a system. Such type of
remuneration is actually problematic for the firm in the longer run because individuals tend
to pursue their own goals and the essence of teamwork is lost. In order to address this issue,
the companies should focus on procedural (the process used to decide how much) and
distributive fairness (based on how much they receive).
6
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Result
The hypothesis is false because recognition by rewards does not mean that employees would
be satisfied. Though individual recognition is also important for employee satisfaction,
recognition in teams should be done for team productivity. It is not only the continuity that
matters in fact it is the process of determining and giving rewards that determines employee
satisfaction.
Hypothesis V: Competition among telecom companies leads to better customer service.
Findings
Almost all of the employees agreed but few of the respondents at Telenor disagreed citing
that they would only perform up to what is expected of them (Exhibit:11)
According to the latest PTA statistics, Mobilink complaint share in 2007 stood at 27%
1
whereas Telenor’s complaint share stood at 15%.In the previous year, both the companies
had complaint rates of 32% and 13% respectively. Telenor’s complaint rate has increased in
the past one year. This means Mobilink’s service is getting better.
Analysis
Pakistan’s telecom market is very competitive with the presence of six players. Here service
actually determines where the company stands. The responses of employees were exactly in
conjunction with Irons (1997) theory that internal cultures govern external performances
and that strategic cohesion internally is an essential factor in the effective marketing of a
service.
Telenor is new in the market and is expanding rapidly therefore there are a few problems in
its service whereas Mobilink’s service has always been an issue. It has been fined twice by
PTA over bad service.
Now if we look at the broader picture, we can observe that due to aggressive competition
and high cellular penetration in the market, the average revenue per user (ARPU) has
reduced by almost 4 times the amount in the year 2002.
Result
The above hypothesis is true.We can see that Mobilink’s complaint share has dropped in
2007 whereas Telenor’s complaint rate has increased but Telenor is also expanding its
services.Compared to Mobilink telenor has a better service quality and fewer complaints.
Hypothesis VI: Employee participation in operational decision making leads to motivation
7
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Findings
Employee participation in decision making was judged by a question whether the company
asks for their suggestion regarding improvements in work processes etc. There were a total
of four options i.e. involves employees, takes the decision itself, benchmark with
competitors or depends upon the situation. Majority replied that the management involved
employees in its decisions.
However, 23.43% at Telenor and 11.43% at Mobilink said the company benchmarked its
processes with competitors. 28.57% at Telenor and 25.71% at Mobilink felt that such
decisions depend upon the situation (Exhibit: 12)
Department audit by employee’s means that they observe the working of the department
while working there and suggest some improvements (Exhibit: 13).
One question asked employees about their empowerment in entertaining customer
requests. Employees at both the companies felt that they could take the decision
themselves and that the management would definitely support them (Exhibit: 14)
Another question asked employees about one observation or suggestion that the company
incorporated in its working on their request. Three Mobilink employees said that place for
prayers was given, workflows and communication between departments was improved on
their request. Majority at Telenor said they never bothered to suggest anything. Only one
employee said that repositioning of Djuice was his suggestion.
Analysis
In both cases, employee involvement is medium. Telenor however, takes a lot of its
decisions after benchmarking with competitors. It is probably due to the fact that Telenor
entered into the market almost 10 years after Mobilink and 6 years after Ufone. The
improvement process is not continuous. The companies look for changes as and when
required. Their approach is reactive in this case.
The findings reaffirms theory by Bowen (1997, p. 342) that a lack of managerial support can
make it difficult to implement empowerment.
Result
The hypothesis stands true because if the management does not want employees to
participate they feel discouraged and they withdraw from any organizational activity. On the
other hand, if employee opinion is educed they are motivated, and only then tend to think
about improvements in their workplace.
5. Conclusion and Recommendations
Based on the finding and analysis, it can be concluded that both Mobilink and Telenor are
employing various tactics for internal marketing. However much needs to be done on
various fronts.
One important issue is that of top management’s realization and continuous support to
internal marketing efforts. It involves communication of the mission, vision and strategies to
the lowest level. It is the duty of the top management to inculcate the importance of
internal marketing and its impact on the business to its middle management. Ultimately it is
the management who builds the service oriented culture.
8
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Employee participation is a key element in internal marketing efforts. If employees do not
feel motivated enough to work in the company, no matter how much the rewards are, they
will still leave the firm.
A good recruitment process alone does not help. It has to be combined with other practices
for example training, career development, employee participation, open culture and
rewards in order to retain employees.
All the factors i.e. fair and equitable reward system, training and development, recruitment
and management support work together to establish strong internal marketing practices
which satisfy employees and result in less turnover.
5.1. Recommendations
Based on the above conclusion, following are the recommendations for both the companies:
1. Recruitment process must be combined with some retention techniques in order to
make the whole process better and financially viable. One of the retention practices
could be focusing more on A type employees whom the company cannot afford to
lose. Be as rigorous at branding your organization as an employer as you are at
marketing and branding your products and services to customers. 2Validity should be
an important part of the recruitment process. Generalizability however should not
there. Separate tests should be designed by each department to gauge the
candidate’s appropriateness for the job.
2. Companies with a long term focus on their performance invest in people. Though
both the companies spend their budgets on trainings but thorough developmental
initiatives are lacking. A bit of focus on development would help these firms retain
people and make their human capital a competitive advantage. Mentoring and
succession planning are two useful tools that need to be considered by both the
companies.
3. Top management support is extremely important for any internal marketing tactic to
be employed. It appears that the top management is quite supportive of the
employees and a open culture exists however the problem lies in the use of internal
marketing tools and their implementation.
4. Employee participation and recognition is also necessary for a progressive
organization. Though team based incentives are common everywhere, at times they
lead to dissatisfaction on individual front. Individuals especially ‘A’ type must to be
recognized for their efforts because the firm cannot afford to lose them. This will
encourage the employees to work dedicatedly for the firm.
5. Recognition through rewards is extremely essential for employee motivation. This
should be a regular process instead of being a one time activity. Furthermore,
individuals must also be recognized because individual recognition fulfils a man’s
desire of self esteem. The company can make use of non monetary rewards to
satisfy this desire of individuals.
9
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Reference
Berry, L.L. and Parasuraman, A. (1991), Marketing Services: Competing through Quality,
the Free Press, p. 151.
Dalton, J., Croft, S. (2003), Managing Corporate Reputation, Thorogood, London
Dolphin, R. R. (2005), Internal Communications: Today’s Strategic Imperative, Journal of
Marketing Communications, 11(3): 171-190
Dortok, A. (2006), A Managerial Look at the Interaction Between Internal
Communication and Corporate Reputation, Corporate Reputation Review, 8(4):
322-338
Dunne, P. A., Barnes, J. G. (2000), Internal Marketing – A relationships and valuecreation view, in:Varey, R. J., Lewis, B. R. (ed.), Internal Marketing: Directions for
Management, Routledge, London
Ewing, M. T., Caruana, A. (1999), An internal marketing approach to public sector
management, The International Journal of Public Sector Management, 12(1): 1726
George, W.R (1977), “The retailing of services – a challenging future”, Journal of
Retailing, Vol. 53 No. 3, Fall, pp. 85-98.
Glassman, M. and McAfee, B. (1992 ), “Integrating the personnel and marketing
functions: the challenge of the 1990s”, Business Horizons, Vol. 35 No. 3, pp. 52-9
Grönroos, C. (1983), Strategic Management and Marketing in the Service Sector,
Chartwell-Bratt Ltd, London.
http://www.pta.gov.pk/media/tqr_mar_07.pdf
Rafiq M., Ahmed P.K. (2000), “ Advances in the internal marketing concept: definition,
synthesis and extension“, Journal of Services Marketing, Vol 14 Issue 6
Rosenblunth, H. and Peters, D. (1992), The Customer Comes Second: and Other Secrets
of Exceptional Service, William Morrow and Co., New York, NY.
Varey, R. J. (2001), Internal marketing communication, in: Marketing communication,
Taylor & Francis Ltd., Abingdon
10
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Apendix
Exhibit : 1
Mobilink-Average Selection Rounds
2.54%
8.57%
Telenor-Average Selection Rounds
2.86%
22.86%
11.11%
2.86%
25.71%
36.11%
41.67%
45.71%
Two
Three
Four
Five
More than five
Two
Three
Four
Five
More than five
Exhibit:2
Mobilink-Involvement of managers in the
hiring process
Telenor-Involvement of managers in the
hiring process
14.29%
17.14%
8.57%
20.00%
65.71%
74.29%
Yes
No
Depends upon the situation
Yes
No
Depends upon the situation
Exhibit:3
Mobilink-Goal setting
Telenor-Goal setting
5.71%
31.43%
94.29%
Yes
No
68.57%
Yes
No
11
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Exhibit:4
Telenor-Feedback from supervisor
Mobilink-Feedback from supervisor
0
34.29%
25.71%
65.71%
74.29%
Once
Once
Twice
Twice
Exhibit:5
Telenor-Informal interaction
Mobilink-Informal interaction
5.71% 2.86%
31.43%
11.43%
2.86%
22.86%
48.57%
17.14%
31.43%
25.71%
Always
Usually
Sometimes
Rarely
Never
Always
Usually
Sometimes
Rarely
Never
Exhibit:6
Mobilink-Most likely reason for quitting the
organization
Telenor-Most likely reason for quitting the
organization
17.14%
17.14%
42.86%
11.43%
25.71%
34.29%
22.86%
27.03%
Stressful job
Relations with supervisor
Stressful job
Relations with supervisor
Low salary
Personal reasons
Low salary
Personal reasons
Exhibit:7
Mobilink-Trainings
Telenor-Trainings
12
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Exhibit: 8
Mobilink-Probability of higher education
Telenor-Probability of higher education
2.86%
5.71%
2.86%
2.86%
8.57%
85.71%
91.43%
20 percent
40 percent
60 percent
20 percent
40 percent
60 percent
80 percent
Exhibit: 9
Mobilink-Celebrate target completion
Telenor-Celebrate target completion
8.57%
17.14%
82.86%
91.63%
Monetary incentives
Monetary incentives
Non monetary incentives
Non monetary incentives
Exhibit: 10
Mobilink-Satisfaction with rewards
Telenor-Satisfaction with rewards
2.86%
2.86%
40.00%
42.86%
28.57%
54.29%
28.57%
Disagree
Neutral
Agree
Strongly agree
Neutral
Agree
Strongly agree
13
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Exhibit: 11
Mobilink-Fulfill customer needs
Telenor-Fulfill customer needs
2.86%
11.43%
14.29%
22.86%
34.29%
51.43%
62.86%
Neutral
Agree
Strongly agree
Disagree
Neutral
Agree
Strongly agree
Exhibit: 12
Mobilink-Business improvements
Telenor-Business improvements
25.71% 40.00%
28.57% 30.86%
11.43%
17.14%
23.43%
22.86%
Involves employees
Takes the decision itself
Involves employees
Takes the decision itself
Benchmark with competitors
Depends upon the situation
Benchmark with competitors
Depends upon the situation
Exhibit: 13
Mobilink-Department audit
Telenor-Department audit
8.57%
11.43%
57.14%
Yes
68.57%
No
Yes
No
14
Universal Journal of Management and Social Sciences
Vol. 3, No.3; March 2013
Exhibit: 14
Mobilink-Employee empowerment
Telenor-Employee empowerment
32.10%
27.00%
54.50%
58.71%
14.29%
13.40%
take decision
donot entertain
goto manager
take decision
donot entertain
goto manager
15