Brand Success: Luxuriance of Internal vs External Customers

Brand Success: Luxuriance of Internal vs External Customers

“Customer is the Only One Boss”

By,

?Mehboob Ahmad

Sr. Regional Manager Martin Dow Marker.

Ph.D. MGT (Marketing), MS-Marketing, MBA-Marketing, B. Sc. (Zoology), AKU-MERCK-ABMTC, OSHA, NEBOSH-IGC

?The success of any organization is determined by the success of its brands & customer satisfaction is the key to developing brand equity. Customer satisfaction remains the main-stay of every Organization. For improving the interaction with customers, the firms focus on relationship marketing. This concept was first launched by Berry (1983) & was only concerned with customer relationships.

???Relationship marketing is meant to identify and establish, maintain and enhance relationships with customers, and other stakeholders, at a profit so that the objectives of all parties involved are met. This is done by a mutual exchange and fulfillment of promises. According to Bendapudi and Berry, "the customer continues to be at the center of all conceptualizations of relationship marketing."

???Moving forward with the discussion, when we talk about customers, these are not only external customers who exchange money for goods or services rather, everyone from the board of directors of the company to the supervisors and team members is the Internal customers of that product/service. Customers either can be internal or external, which one needs the prime focus, internal or external?

??Internal customers are those colleagues and departments within their own organization i.e. internal customers will be everyone from the board of directors of the company, to the supervisors and team members that serve product/service at the customer interface while external customers are more likely to be customers & consumers.

???Recent research has revealed that the success of an organization depends mainly relies upon good care of its internal market - its employees. Internal service quality affects job satisfaction and, ultimately, customer satisfaction. There is empirical evidence for the existence of a positive relationship between the satisfaction and loyalty of boundary-spanning employees and of customers. However, internal relationship marketing should extend to all employees, not only to those who are in contact with external customers. It is in the company's interest to reduce both customer and employee turnover through relationship marketing.

???High satisfaction, commitment, and perceived benefits are important for both customer and employee loyalty. Empirical evidence supports the existence of a positive relationship between the satisfaction and loyalty of boundary-spanning employees and that of customers (Schneider & Bowen 1993). Thus, the organization needs to develop good relationships not only with its external customers but also with its own internal customers, including all its employees, not only those in customer contact positions. There are several reasons for this.

???One such reason is that having an attractive internal product makes it easier for the organization to attract the best people (employees); their individual needs will be met and they will become more committed to the organization, thus reducing labor turnover. A lower turnover, in turn, will lead to cost reductions in hiring and educating new employees. Satisfied employees may also spread positive word of mouth to other prospective employees and customers. In addition, employees who are not in boundary-spanning roles still serve other employees within the organization.

???Concluding the discussion, as employees play a valuable role in the strengthening of corporate brands and organizations have to maintain a greater emphasis on internal marketing (IM). As documented by contemporary research, IM places people (internal customers) on center stage in the effort for organizational success. The fast & Furious competition in Pakistan’s Pharmaceutical sector has created challenges that highlight the need to establish strong corporate brands in order to achieve differentiation. The development of successful corporate brands depends on the effective participation of employees whose attitudes and behavior are fundamental to the manufacturing & marketing of a high-quality product leading to customer satisfaction. IM through its emphasis on “internal customers” creates a people-oriented culture that sets the foundation for building a strong corporate brand & eventually organizational leadership in the industry.