The report focuses on the role of Internal Branding In Human Resources & Marketing Management. It specifically goes through the HRM practices that incorporate Internal Branding. It also shows the impact on Brand Performance and Brand Commitment.
A Report On The Role Of Internal Branding In Human Resources & Marketing Management
1. A REPORT ON
THE ROLE OF INTERNAL
BRANDING IN HUMAN
RESOURCES & MARKETING
MANAGEMENT
By
Navitha Pereira
2. ABSTRACT
Internal branding is believed to be a reasonably new method which support organizations to focus
on the organizational vision and values by concentrating on one proper brand message in order to
progress the corporate brand identity to every associate. Internal branding positively impacts
attitudinal and behavioral parts of employees. The acceptability of internal branding depends on
upon an understanding of the internal and external condition of the organization. The purpose
behind this paper is to have a better understanding of internal branding concept and to inspect the
dimensions of internal branding in the area of marketing and human recourses. Literature Review
is followed as the main methodology to review the existing knowledge. The review can help future
research to contribute to existing knowledge while organizations are benefited with the insights
shared on internal branding.
Keywords: Internal branding, Brand commitment, Brand performance, Human resources,
Marketing.
3. CONTENTS
Chapters Page No.
1. Introduction 1
1.1. Objectives 2
1.2. Scope of study 2
1.3. Methodology 3
1.4. Relevance of the study 3
1.5. Limitations of the study 3
2. Literature review 4
2.1. Internal branding 4
2.2. HRM practices for internal branding 5
2.2.1. Recruitment 5
2.2.2. Selection 6
2.2.3. Training & development 7
2.2.4. Internal communication 8
2.3. Consequences of internal branding 8
2.4. Impact on brand commitment 9
2.5. Impact on brand performance 10
3. Conclusion 11
References 12
4. 1
Chapter 1
Introduction
Brand image and status are the keys to achievement in any business. They are considerably
influenced by the nature of communications of the employees with customers. Therefore, it
becomes essential for organizations to clarify the brand image that employees are expected to
project to others and inspire them to deliver it to the customer. Internalization of brand image by
employees is essential, as it boosts their role performance and offers competitive advantage to the
brands.
Branding was originally used to separate just tangible products, however now it is utilized to
separate individuals, places and firms as well. A brand is the disguised total of all impressions
acquired by customers bringing about a particular position in their mind. Branding includes the
making of psychological structures that assist the intended interest group with organizing their
knowledge concerning a specific item/association. Branding is not just a chance to shape client's
recognitions as for the organization, it is additionally a chance to shape employees judgments too.
Internal branding is a preparation of vital procedures that organize the staff and give them the
opportunity to make a good business for the client. These procedures incorporate internal
communications, training support, Leadership activities, recognition and reward programs, and
recruitment activities.
There is increasing rivalry in businesses and unquestionably, in such conditions, holding the clients
and growing their dependability turn out to be more difficult step by step. Internal branding is
another way to deal with client loyalty through the channel of employees. Effective execution of
internal branding can make a huge difference. Employees are a basic segment of an organization's
image, particularly for service organizations, where they impact the client’s decisions.
The accomplishment of a brand is nearly connected with the behavior of the employees since they
speak for the brand in the collaboration with the client. The brand-related behavior of employees
which is the result of brand knowledge is fundamental to make a steadier and special brand
communication in the sector. With regards to services, since the customer see no difference
5. 2
amongst the individual conveying the service and the brand association, a deficient staff execution
regularly brings about gaps between customer desires and the brand promise.
To empower employees to convey the guaranteed customer desires they need further knowledge
about the brand value, trust it and follow up on it. However the initial step is to educate and make
employees comprehend the brand value.
The effective development of the internal branding might be as dependent on HR activities as on
those created in the marketing division. Adjusting marketing and HR capacities is not a simple
task as they are not coordinated and at times both the divisions don't talk. Internal branding offers
solution for this issue by blending best of marketing and HR. The effect of internal branding on
brand identification, brand commitment and brand performance has been investigated.
1.1. Objectives
This paper reviews the literature and different areas of internal branding by addressing the
following mentioned objectives:
1. To study the HRM practices followed for the application of internal branding.
2. To study the impact of internal branding on brand commitment and brand performance.
1.2. Scope of study
This study is only aimed towards identifying internal branding practices in HR and Marketing
domains. It is also focused more on the service sector. The main research papers reviewed are from
the year 2012 to 2016. 3 papers were reviewed for human resources perspective and 3 papers were
reviewed for the marketing perspective. The period of study was 2 months.
6. 3
1.3. Methodology
This paper used exploratory research design. Secondary data resources were used to generate this
report. The secondary data resources are journals, articles, research papers and websites. Through
a thorough review of the past papers on internal branding, the implications of internal branding
idea and its vastness has been checked. Further, special focus has been made to review the
consequences of the concept of internal branding and its behavioral connections with different
brand related concepts.
1.4. Relevance of the study
This study is aimed towards identifying how internal branding is integrated into the HR practices
of organizations. The benefit of the study is that it helped to gain knowledge about internal
branding and the impact of internal branding on brand commitment and brand performance.
1.5. Limitations of the study
Despite best efforts, this report has faced certain limitations. Only secondary data was used for this
study. The study was conducted within a short duration of time. Also this is just a review of the
internal branding and not an in depth research project.
7. 4
Chapter 2
Literature Review
Internal branding depends on the basic idea of being employee centered. Literature review starts
with a discussion of the concept of Internal branding, followed by an insight within the dimensions
of internal branding with respect to human resources and marketing, its consequences and impact
on brand commitment and brand performance.
2.1. Internal Branding
Internal branding (IB) is a division of internal marketing which focuses on the improvement,
strengthening, and maintenance of the brand. In 1976 it was suggested that employees are the same
as internal clients who should be happy with the organization. Punjaisri & Wilson (2007) trust that
internal marketing is operational through internal communication. Porricelli et al. (2014) say that
internal marketing exploration is the most essential dimension. King and Grace (2009) contend
that internal brand management is more vital than “internal communication with the brand” and
trust that a far reaching system of intellectual and passionate preparing is fundamental for the
acknowledgment of this demand.
According to Helm et al. (2016), emphasis on internal brand in recent marketing, needs to take
part in practices that consent to the brand. Internal brand management works as a possible method
in acquiring competitive advantages. It, through the production of a solid brand, makes it difficult
for the contenders to hinder and duplicate the brand's position. Although capable advertisers are
the fundamental players in making and keeping up strong brands, the defenders of internal brand
management trust that employees assume an important part in the creation of advantage through
branding. According to Burmann et al. (2009) although every employee has a different level of
commitment in “brand life”, the commitment of each of them in the development of a strong brand
is verifiable. Burmann & Zeplin (2005) contend that internal brand management comprises of three
levels. The main level is human recourses management which depends on the brand and
accentuates individual character of the brand through enrollment and advancement of the
employees. This refers to the hierarchical socialization of employees through introduction,
8. 5
education, and social and instructive projects to guarantee comprehension of brand identity. The
following influence is to strengthen the brand among employees through the making of awareness
and internal communication. The last use is the brand leadership which is empowered at all
hierarchical levels and refers to the employees who live with the brand. Burmann et al. (2009) and
Porricelli (2013) recommended another version of internal brand management in which three
influences have been anticipated: brand identity, brand communication and brand leadership.
These days organization's most accomplished methods for conveying a characterized brand
experience is just through the support and intermediation of its workers and by viably carrying on
the brand promise. This is the main way that business procedure can effectively be executed,
enabling strategies for success to be accomplished. Given that brand has moved towards being a
client encounter idea, the capacity of employees to express that experience has turned out to be
progressively remarkable. The significance of the part of employees in businesses is unchanging.
2.2. HRM Practices for Internal Branding
According to Miles & Mangold (2004), Internalization of brand values requires that a correct,
consistent, timely, and specific message about the brand is communicated effectively across the
organization. The HR department can play an active role in this context by implementing the
appropriate strategies, processes, and policies. According to Gotsi and Wilson (2001), HRM
practices, such as recruitment policies, performance appraisal, and training need to be aligned with
the brand values to avoid sending conflicting messages, which will have a significant impact on
the development, the implementation of strategic business initiatives, as well as on employee
behavior (e.g., commitment, satisfaction, productivity, engagement and other behaviors) in order
to deliver the brand promise.
2.2.1. Recruitment
Sending a consistent message to the internal stakeholders begins with the hiring or staffing
practices. The primary objective of hiring is to employ a new member who fits with the culture,
values, and belief system of the organization so that he or she can make a significant contribution
9. 6
to the organizational performance. Heneman et al. (2012) have said that for this to happen, the
recruitment efforts should send a clear message about the qualifications needed. It is at this stage
in the hiring process that a message about the brand values and propositions needs to be sent and
communicated clearly. By doing so, the potential applicants will be able to select themselves out
if they believe that they do not have what it takes to embrace and internalize the brand values. In
order to be effective in sending such message, the HR department needs to be careful about the
choice of language, the media used, and the scope of recruitment. Here, the marketing people
should also play an active role in giving feedback to the HR department in designing the
appropriate recruitment message.
2.2.2. Selection
The recruiting efforts are an attempt by the HR department to attract as many applicants as possible
to apply for a job. However, it is during the selection stage that the internal branding efforts become
more intense. This is when the candidates are screened carefully to identify the best and most
qualified ones for the job. While the person-job fit is obviously important for job performance,
internal branding stresses the match between the person and the organization. In order to identify
the person-organization fit, the selection tools should focus on organizational relevancy as opposed
to being solely job relevant, which is important to achieve the person-job fit. Burmann and Zeplin
(2005) went further by emphasizing the person-brand fit, that is, a strong congruence between
personal values and brand values. Here, Chiang et al. (2012) said that the selection tools used
should be able to differentiate and discriminate candidates who are likely to embrace and live the
brand value and subsequent brand-building behavior. Personality tests coupled with
situational/behavioral interviews and other selection tools should be used in combination for the
said purpose. At this stage, it is necessary that the marketing people are involved in selecting the
most qualified candidates.
10. 7
2.2.3. Training & Development
Training and education play a big role in the internal branding program. Punjaisri and Wilson
(2007) found that training was the most important HRM practice to develop and reinforce brand
supporting behaviors. Through such programs, employees can constantly be re-educated about the
value of the brand and why it is important to accept it, and, hence, deliver it by demonstrating the
appropriate brand behavior. In this context, the orientation of newcomers is important as it is the
first formal education by the HR department about the brand. In order to ensure that the brand is
alive in the organization, the career development program and training should also be tied to the
brand. So, those wishing to develop their career in the organization, they should demonstrate the
attitudes, behaviors, and values that reflect the brand. Providing a brand mentorship program is
another reinforcement measure the organization can undertake to promote brand supporting
behaviors and attitudes of employees. Through such program, the employees will be coached and
guided about behaviors and attitudes that are consistent with the brand. In this case, the marketing
department needs to interact actively with the HR department about what kinds of training
programs that are mostly needed for the employees to develop brand supporting behaviors. The
input from the marketing department is, therefore, essential in facilitating the HR department
toward implementing an integrated branding strategy. According to Schneider & Bowen (1985),
studies have shown that when the employees perceive that the organization is supportive of their
career development initiative, they are likely to be more committed to the organization and to their
job and hence, be willing to become a brand advocate to the outside constituents.
According to Burmann & Zeplin (2005), while training and development allows employees to
enhance their brand-related skills and knowledge in living the brand, brand supporting behaviors
and attitudes will be further reinforced when they are built in as part of the performance appraisal
system in which employees who demonstrate brand-related performance, such as brand citizenship
behavior and brand commitment, will be rewarded. Linking brand-related performance with
reward and compensation will motivate the employees to live the brand.
11. 8
2.2.4. Internal Communication
Internal communication and feedback system are also essential in the internal branding initiative.
While communicating the brand value can be reinforced through the internal communication
system of emails, company’s newsletter, internal broadcasts, brand books, storytelling, or
(external) advertising messages, etc. (Burmann & Zeplin, 2005) or informally, such as special
events or face-to-face meeting (Herstein et al., 2008), the feedback system can be effective as a
tool for quality improvement in the internal branding programs. As employees have to live by and
with the brand, their opinion in the brand matters. Therefore, a system where they can give their
constructive feedback about the brand or they can air their grievances about the brand should be
instituted. According to Chiang et al. (2012) when employees are allowed to give their input about
the internal branding initiatives, they are likely to feel that they psychologically own the brand
and, hence, will protect the brand by demonstrating the appropriate brand behaviors.
2.3. Consequences of Internal Branding
The investigation of Punjaisri and Wilson (2007) described the impact of the states of mind on the
connection between internal branding's tools and employees brand performance. Punjaisri et al.
(2009) has focused research to understand the results of internal branding on employees brand
supporting practices. They have highlighted the significance of an integrative internal branding
structure containing capacities, for example, HR and marketing. Boyd and Sutherland (2006) led
four distinguishing observational reviews in relations where employees recognized “living the
brand”. They demonstrated an employee branding model, a self-fortifying cycle which highlighted
the significance for organizations to urge their staff to “live the brand” so as to acquire employee
brand commitment.
Burmann and Zeplin (2005) contended that internal branding causes a mutual comprehension of a
brand over an association and a viable internal branding effort initiate’s employees brand
commitment. Employee engagement is an imperative apparatus for the maintenance of ability.
Numerous experts, for example, Baumruk (2004) have demonstrated the connection between work
environment variables and engagement.
12. 9
They perceive that organizational culture may play an important role in producing a picture to
outside partners. Aaker (2004) has led many reviews on the ideas of brand equity and brand
identity which demonstrated that brand equity is in the heart of branding research.
As per the review of de Chernatony et al. (2000), internal branding could shape employee's
behavior to a great extent in view of the presumption that when employees comprehend and are
committed on the brand values in the brand promise, they will perform in ways that satisfy client's
brand desires. As indicated by Zeithaml and Gremler (2006), to guarantee that their employees can
convey the brand promise, the organization needs to participate in any exercises that guide their
employees in their capacity to convey on brand promise, for example, training motivating,
rewarding, recruiting, fulfilling and providing equipment and innovation.
2.4. Impact on Brand Commitment
Brand commitment is an attachment feeling resulting from a previous satisfactory interaction with
a brand, which will drive the consumer to use the brand over time and withstand changes, creating
an important and valuable relationship with it.
According to Ng and Feldman (2011), sense of duty regarding the association mirrors employees'
inclusion and impedance with the organization's objectives and their enthusiasm to proceed with
their works in the association. Organizational commitment can be characterized as one's feeling of
having a place with the organization and their awareness of other's expectations towards the
organization's objectives. It additionally implies giving the social framework one's vitality and
fidelity. In connection to the attributes of employees, Podsakoff et al. (2000) contend that the
investigation of organizational commitment is notable in the territory of organizational citizenship
behavior. According to Porricelli et al. (2014), on account of corporate brand, brand commitment
is synonymous with organizational commitment. Brand commitment is a key component in
organizational accomplishment of numerous enterprises, for example, tourism and hotel industry
(Ahn et al., 2016). What is imperative in this exploration is the idea of employees' commitment
regarding the organization's brand. Brand commitment has been characterized as the mental and
passionate association with the brand. Punjaisri et al. (2009) say that creating a commitment to a
brand, one knows the brand as his/her identity and nature and experiences all the push to ensure
13. 10
the brand. Burmann and Zeplin (2005) characterize brand commitment as the mental connection
of employees to the brand, the inclination of employees for the brand, and endeavor to accomplish
the objectives and techniques of the brand. According to Ahn et al. (2016) the formation of the
idea of brand commitment is a critical component in fortifying and accomplishment of internal
brand.
2.5. Impact on Brand Performance
Brand performance refers to how profitable a brand is in the market. It means to quantify the vital
accomplishments of a brand. Subsequently, monetary measures are unsuitable for this develop.
Brand awareness, brand identity brand loyalty, brand citizenship behavior were proposed as
critical performance of a brand by Punjaisri and Wilson (2011). There is a positive and significant
connection between the internal branding and brand performance. These outcomes are predictable
with the discoveries of HadizadehMoghadam et al. (2012) and ZulfiqarNasab & ZulfiqarNasab
(2013). They contemplated the connection between the internal branding and brand performance
in their research.
14. 11
Chapter 3
Conclusion
The idea of internal branding is very much recognized in the service sector. The research finds
internal branding is presently basic for all forefront employees occupied with service sector. To
apply Internal Branding, a few tools and strategies must be connected, for example, Internal
Communication, Training and Support, Leadership Practices, Rewards and Recognition, and
Recruitment Practices so that Internal Branding is useful in conveying the brand guarantee to the
clients (Varun et al., 2015).
Internal branding is contended to be influential in impacting employees' states of mind and forming
their practices to be lined up with a brand, by making employees' comprehension of brand values
and connecting with them in living brand reality (Kotter and Heskett, 1992). Living the brand or
item is shown in brand supporting mentalities and behavior. When one disguises the brand value
he/ she will have the capacity to convey the brand guarantee and experience to the outside partners
adequately (Cushen, 2009). Internal branding is an intense instrument for attitudinal and
behavioral adjustment in the organizations essential for the brand survival and brand sustainability
over the long term (Burmann & Zeplin, 2005). Services sector is a highlighted notion to be
surveyed with branding perspectives.
As employees are a definitive brand ambassadors and brand advocates, the HRM practices ought
to be adjusted and facilitated well with the marketing exercises to advance brand supporting
practices that are vital to brand value delivery to outside parties (Burmann and Zeplin, 2005). A
decent HRM framework gives a workplace and a work condition that is helpful for the
advancement, support, and working of brand practices. At the point when the best possible
framework is set up, the employees live the brand and turn into the brand.
When this happens, the brand commitment of the employees is high, which leads them to deliver
their best to the customers which will in turn improve the brand performance. Internal Branding
improves the brand image of the company and also represents it as an employer of choice.
15. 12
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