presentation on Analysis of internal marketing tactics employed by Mobilink and Telenor (case study of Bahawalpur)

2. Analysis of internal marketing
tactics employed by Mobilink
and Telenor
(case study of Bahawalpur)
M Farhan Ali
M Salman Aslam
The Islamia University of Bahawalpur
Department of Commerce
Supervised By
Dr. Ayesha
Shaukat
Assistant Professor

3. Introduction
● Internal marketing is when organization think of their employees as their first
market-their internal customer
Internal marketing create motivated and customer-oriented employees who
deliver external customer satisfaction
the best planned strategy in the world cannot succeed if the employees responsible for its
implementation have a commitment to it

4. PURPOSE OF STUDY
The objective of this study is to gain insight to the existing research and to apply this
concept in Pakistan 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 the comparison of the practices with the
contemporary techniques undertaken in the west

5. 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.
PROBLEM STATEMENT

6. 1. What are the factors that affect the existing internal marketing practices in
organization turnover and job satisfaction?
2. How is it difficult for the middle management to pursue anything without the
continuous support from the top management?
3. How do situational variable (search as organizational culture, politics) influence
internal marketing practices in Employee satisfaction and motivation?
Research Question

7. Literature review
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)
Internal Marketing (IM)n
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

8. Literature Review
“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 customers͙ 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

9. Research Methodology
The initial step was to brainstorm 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.
Type of research methodology
The research that we have conducted on the topic is mainly quantitative the
variables chosen are shown in the schematic diagram

10. Schematic diagram-research variables

11. Theoreticalframework

12. limitations
The research was only limited to employees of Telenor and Mobilink in Bahawalpur.
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.
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
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.

13. 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)

14. Management of both the organizations involved the concerned manager in the hiring process͘ in more
than 60% of the cases, manager’s opinion is elicited͘ 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)

15. Analysis
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.
Result: hence the hypothesis is true.
Hypothesis ii: turnover is reduced in organizations where bosses frequently communicate with their
employees
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)

16. 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)

17. Analysis
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

18. 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.

19. Question related to career development at Mobilink and Telenor asked employees about the
probability of receiving higher education financed by their firm. 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)

20. Analysis
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

21. Conclusion
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
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.
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

22. Conclusion
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.

23. Recommendation
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 .This will encourage the employees to work dedicatedly for the
firm.
Recognition through rewards is extremely essential for employee motivation. This
Should be a regular process instead of being a one time activity .The company can make use of
non monetary rewards to satisfy this desire of individuals.
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

24. Recommendation
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.