30th International Scientific Conference on Economic and Socia.docx

30th International Scientific Conference on Economic and
Social Development – Belgrade, 25-26 May 2018
383
INTERNAL MARKETING CONCEPT - THE CHALLENGE OF
MANAGEMENT IN THE NEW MILLENIUM
Zoran Ristic
Faculty of Contemporary Arts, Belgrade, College of
Entrepreneurship, Belgrade
[email protected]
Erol Mujanovic
Faculty of Business Studies, Megatrend University, Belgrade
[email protected]
Aleksandar Damnjanovic
College of Academic Studies „Dositej“, Belgrade
[email protected]
“Success does not depend on time, place or circumstances. It

depends on man
himself.“Charles Raus
ABSTRACT
Successful management was and remains the goal of every
company. What changed over time
are the ways in which it was accomplished. Technology was
once a key, former mode of
operation, but today it is the skill and management ability to
attract employees for their own
idea, vision, strategy. Processes of modernization of business
and management, abandoning
traditional, obsolete and introducing new, modern management
styles – are transition
processes as well. Many people are forgetting them, but without
them any other transformation
can hardly be successful. Therefore, the transformation and
training of a company for a high-
quality market entry must incorporate management
transformation (change in the
understanding of the role of management) and introduction of a
modern management concept.
It is necessary to enter new knowledge in this area into
companies and extend them all the way

to the operational levels. This paper seeks to emphasize the
importance of a good internal
marketing and communication in the company and to point out
that employees who perform
their business are the most valuable assets of each enterprise,
that the strength of the enterprise
is in the capacity of all employees, and that employees are those
who make the enterprise what
it is. They are the ones that give life to the enterprise and
enable it to function. The purpose of
the application is to apply the modern techniques and
knowledge of internal marketing and
advance the business performance of the company.
Keywords: internal marketing, communication, motivation,
integration, collaboration,
teamwork
1. INTRODUCTION
One of the most important tasks of management is to create an
environment and a climate that
motivates employees. Survival and success increasingly depend
on the day-to-day mobilization
of the intelligence of all employees, and the task of management

to continually create the
conditions for expressing and using their potentials is expected
to be increasingly important in
the future. The modern enterprise places a high quality
organizational climate and culture in the
center of attention, and the key precondition for the creation of
such a culture and climate are
satisfied and loyal employees. Employees are not an address for
sending appeals to work better,
to be disciplined, to engage more, or to threaten what will
happen if they do not. Management
has to lead employees and find ways to motivate them to give
their maximum.
384
The success of any organization represents the first internal
integration, and then comes the
external integration with the environment. These external
integrations do not exist if the interior
is "rotten". It is very difficult to influence people, they are not

driven by reason alone. Their
motives are much more diverse and complicated, they seek rest,
prestige, reputation, security,
respect ... that is why it is not easy to motivate and mobilize
them. Hence this business can not
be done amateurly. The manager must be able to penetrate the
consciousness of people and find
out what they are looking for, what they really want. Traditional
mental models of
understanding the role of managers, by which management
means deciding what and how to
work and how they will be controlled (Planning - Organizing -
Controlling) are becoming a
past, because this is no longer their primary (main) role.
Instead, employees should be provided
with the right "drive energy", empower them, support them in
what they do and let them work
(Manage - Enable - Follow - Support). Internal organizational
boundaries in companies become
increasingly vague, organizing and co-ordinating activities
through detailed planning has less
and less importance, and more importantly, management
develops "softer" skill (wisdom) to
get the best for the organization from each and every individual.

A "latticed", non-hierarchical
organization is created, which provides an uninterrupted flow of
information, encourages the
takeover of responsibility and interaction between "equal",
informal communication and
leadership leadership independently of the hierarchical level.
Today, companies dedicate most
of their time to planning marketing activities to customers of
their products on the external
market. Many of them, however, do not recognize that similar
activities can be tailored to the
internal market (within the enterprise) and the application to
their employees. 1Although people
are almost always the highlight of our greatest wealth, so far, a
little has been done to explore
their needs, motives, conflicts and frustrations, group research,
culture, communication. Many
of our companies still work on the Taylor model, with a
management whose task is to think
about the workers who are there to do and do not ask much.
What is more, many are deeply
confident that this is the right way to run the business. Time has
come for this understanding to
change and it will change, with all those who want to succeed in

the most demanding market.
2. INTERNAL MARKETING AND HUMAN RESOURCE
MANAGEMENT
In the modern management concept, people occupy a central
place. After all, it is often defined
as an effect on the behavior of employees in order to achieve
the goals of the organization. The
orientation towards people, as a dynamic element of the
organization and human resources
management, becomes the dominant task of management and
strategic orientation of modern
business. They become a key element (resource) that can mean
the difference between success
and failure. Encouraged by increased competition, rapid
technological change, globalization
and other factors, businesses have tried to understand how to
use human resources for
competitive advantage and to achieve organizational superior
performance.2 Over twenty-five
years ago, Leonard Berry first used the term internal marketing,
defining it as the application
of marketing theory and practice in serving external customers
in a way that implies: recruiting

and retaining the best employees and their willingness to do
their best work.3
Paliaga, Strunje and Pezo believe that internal marketing should
precede external marketing
activities because services and customer relationship are the
basis for creating satisfied
customers.4
1 https://www.posao.hr/clanci/karijera/na-radnom-
mjestu/interni-marketing-konkurentska-prednost-
poduzeca/218/ (date of access: 11.4.2018.)
2 Davoudi, S. M. M., Kaur, R., The link between internal
marketing and human resource management, Arth
Prabhand: A Journal of Economics and Management, 2012., p.
59.
3 Little, E., Marandi, E., Relationship Marketing management,
Thomson Learning, London, 2003., p. 114.
4 Paliaga, M., Strunje, Ž., Pezo, H., Application of internal
marketing in enterprises of the Republic of Croatia,
Economic thought and practice, 19, 2010., p. 212.
385

Internal marketing is a concept whose basic goals are to
motivate, attract and retain quality and
professional employees who are primarily oriented towards the
quality of the business portfolio
offered to customers, all in the function of improving the
profitability of the company.5 It
includes all those managerial actions that help employees
understand, accept and fulfill their
roles and tasks in order to achieve the goals of the company as a
whole. Therefore, the primary
goal of these activities is to create a positive work atmosphere
and satisfied and loyal
employees. The application of the philosophy of internal
marketing should in fact provide
greater motivation for employees. Internal marketing can also
be seen as a process of exchange
between management and employees: management has the task
of providing optimum working
conditions and meeting the needs of employees, while in return,
employees are optimally at
work, achieving and maximizing performance. A common goal
both of both others is profit.
Kotler believes that internal marketing should have priority
over external marketing, because

internal marketing begins with the organization of recruitment
of suitable people who are
willing to perform customer satisfaction by doing their job.6 If
adopted and applied in an
enterprise, internal marketing leads to long-term growth and
success, regardless of the activity
of the company. Internal marketing has significant touch points
in the field of human resources,
and the analysis of the concept of internal marketing and its
basic dimensions in the function of
improving human resources is a significant factor in creating a
competitive advantage in today's
dynamic business environment. Thus, Frank Bradley integrates
internal marketing closely with
human resources management and the way in which the
organization develops its business
culture.7 There is no internal marketing without the business
decision-making of strategic
management, which has the basic task of motivating team
members to work together to achieve
the business mission and goals of the company, in the short and
long term.8 Summarizing the
definitions of internal marketing encountered in literature, they
can be classified into four

groups, according to a dominant perspective that is displayed:9
• Internal marketing is a prerequisite for meeting external
consumers;
• Internal marketing is a source of competitive advantage;
• Internal marketing is a synonymous with Human resource
anagement
• Internal marketing is used to use marketing techniques in the
internal market.
The first step towards creating satisfied and loyal employees is
a mission statement that
integrates, directs and motivates employees. First of all, it
should emphasize the need for
recognizable identity, feeling of belonging, belief in all
employees to identify with the goals of
the company, to instruct all employees on the way to go and the
goals to strive for. It should
first acquire all employees, and then clients, suppliers and the
general public. Without it, there
is very little chance of being filled, no matter what owners and
managers are trying to do.
Employee satisfaction implies their emotional orientation and
attachment to work, while loyalty

implies a sense of belonging to employees of a company from
the point of view of their
activities and interests. Between satisfaction and loyalty there is
a cause-and-effect relationship
that does not always have to be linear.
5 Domazet, I., The role of internal marketing in improving the
quality of human resources, U: J. Zubović (ed.),
Active labor market measures and employment issues (p. 260–
280). Belgrade: Institute of Economic Sciences,
2011. (p. 260.).
6 Kotler, P., Marketing Management (11th ed.). Englewood
Cliffs: Prentice Hall, 2000.
7 Bradley, F., Strategic Marketing in the Customer driven
organization, John Wiley & Sons Inc.Chichester, 2005.,
p. 7.
8 http://savjetnik.ba/wp-
content/uploads/2013/04/interni%20marketing%20kao%20integr
acijska%20funkcija%20menadzmenta.pdf
(date of access: 12.4.2018.)
9 Davoudi, S. M. M., Kaur, R., The link between internal
marketing and human resource management, Arth
Prabhand: A Journal of Economics and Management, 2012., p.
60.

386
Certainly, the goal of the management is to have satisfied and
loyal employees, because only
then they achieve the best results and only then can one expect
a success. If there are no satisfied
employees, there will be neither satisfied customers nor
satisfied owners, and the activities of
internal marketing are often of crucial importance. People are
born with the need to have
relationships and connections with other people. Management
must have sufficient knowledge
and skills to make a "relationship" with employees, and the way
to do this is much. Some of
the most common are: more social programs for employees and
their families, more information
for employees, internal publications, audiovisual media
(internal radio, television...), intranet
and e-mail, organizing discussions on certain issues, internal
events that encourage the
socialization of employees (sports competitions, festivities,
various sections...), training and

specialization programs through seminars, lectures, creative
workshops, professional
excursions and study visits, organization of humanitarian
actions, meeting of pensioners,
literary evenings, joint excursions and trips, top management
visits to production facilities,
honors and awards for years of work and loyalty to the
company. If management, as Mary
Parker Follett emphasized, is the ability to do things through
people, then for superior business,
human resources have a multi-dimensional role, and successful
management of them becomes
the key to the success of each enterprise. The content of the
concept of internal marketing and
human resources management, above all, implies:10
• Employee competence, high level of their working ability,
skills, knowledge;
• Accepting the obligation of employees to fulfill their tasks,
loyalty to the organization and
high motivation;
• Matching opinions, wishes, sharing the vision, planning goals
of management and
employees at all levels of the organization.

Developing internal marketing strategies involves a three-phase
approach:11
• Creating a business environment that enhances employee
safety;
• Designing the organizational structure and communication
lines without functional barriers;
• A clear vision of the internal organization by the top
management.
Internal marketing should be a continuous process within the
company, because by treating
employees as consumers, the motivation of employees and their
focus on external consumers
increases. The role of internal marketing is to build the image,
help in the processes of
improving individual and business performance, develop
employee and consumer loyalty,
improve the motivation of employees and help in the process of
creating and using new
individual and organizational knowledge.12 Internal marketing
enables easier movement of
information between employees and managers, facilitating the
acceptance of market
orientation,13 improves the adoption of corporate values by
employees at different levels within

the enterprise (Wieseke, J., Ahearne, M., Lam, K. S., Dick, V.
R., 2009, page 126)14. Internal
marketing shows its results externally. The company can have
brilliant ideas, but if it fails to
realize them, they lose each sense in themselves. Time, effort
and money invested in product
promotion are wasted if no employee knows and is not informed
about the product itself and
10 Ristić, Z.: Internal relations - from loss to profit, collection
of papers: „Social work and social politics“, Faculty
of Political Sciences, Belgrade, 2002. (p. 87).
11 Egan, J., Relationship Marketing, Prentice Hall, Harlow,
2004., p. 164.
12 Gounaris, P., S., Internal market orientation and its
measurement, Journal of Business research, Vol. 59, 2006.,
p. 435.
13 Lings, N. I., Greenley, E. G., The impact of internal and
external market orientations on firm performance,
Journal of Strategic Marketing, Vol. 17, No. 1, 2009., p. 45.
14 Wieseke, J., Ahearne, M., Lam, K. S., Dick, V. R., The role
of leaders in internal marketing, Journal of
Marketing, Vol. 73, No. 2, p. 126.

387
its value. The essence of internal marketing is that employees
treat their colleagues who come
in the business process after them as users and that marketing
principles are applied within the
organization. If everyone in the company accepts marketing
principles, then each of the
employees tries to facilitate the work to others. The essence of
internal marketing is that the
key to satisfactory business results lies in creating satisfied,
motivated and outsourced clients
of highly-oriented employees. The company operates many
factors from an external
environment, to which it can not influence and can not be
changed, but must constantly monitor
them and have a good knowledge of them in order to adapt their
goals and achieve the planned
results. Unlike the external environment, in the internal
environment it is necessary to provide
the necessary conditions for the realization of the business
goals, the best possible combination

of the following elements:15
• people with their knowledge and skills;
• technologies and
• labor organization.
3. EFFICIENT INTERNAL COMMUNICATIONS - THE
PREMISE OF SUCCESSFUL
INTERNAL MARKETING
In an endeavor to establish and develop good relationships
among employees, the role of
internal communications is very significant. An adequate system
of internal communication
contributes to such interpersonal relationships that will create
the conditions for each individual
to show a sense of respect, strengthen and positively motivate
motives, encourage creative
enthusiasm and the will to do more and better. The awarding of
awards for company loyalty,
various parties, birthday parties, the presence of colleagues,
joint lunches, visits to sports and
cultural events are just some of the ways to encourage the
exchange of information, ideas and
mutual cooperation between employees. No one in the company

should have a monopoly on
information. However, since information means power, often
individuals hide the most
important information in order to preserve their status or protect
themselves and offer hundreds
of others confusing. This creates an apparent paradox that there
is a "flood" of information, and
employees are still insufficiently informed, just like when
floods occur, people are splashed
with water from all sides, yet they are thirsty because they can
not drink this water. Good
managers are trying to accumulate the knowledge that is
available to all employees and build
the strength of the company on this. Every individual is
expected to establish relationships of
mutual trust and communication with as many people as
possible in the enterprise itself.
Through the daily working activity of individuals in such an
atmosphere, a "network of trust"
is created, mostly unconscious, but motivated by the thoughtful
management policy.
Emphasizing the importance of internal communication Cy
Charney suggests management
what to do to get more employees, expand its aspects and gain

tighter ground under your feet:16
• Include people in the changes you make, ask them for an
opinion - so they feel more valued
and more open to take on obligations
• Listen to what they want to say to you, try to understand their
thoughts and feelings
(interests, goals, concerns);
• Take care that communication is open and objective, to
prevent possible doubts and
reprisals;
• You are dealing with issues that are not easy to "talk,"
otherwise the problem will become
more serious;
15 Zubović, J., Development of the economy based on
investments in human resources and foreign investments,
Institute of Economic Sciences, Belgrade, 2010. (p. 40.).
16 Customized to: Charney Cy, Efficient manager, Grmeč –
Economic review, Belgrade, 2006, (p. 40, 41 and 50).
388
• Listen, you must have hearing rumors in order to identify the

problem in time before it is
taken away;
• Encourage people to communicate with you, make it easy for
them to reach you, manage
walking, let them see you;
• Encourage the associates' ideas by accepting good
suggestions; thank them for suggestions,
even if you always disagree with them.
A good example of management based on the concept of
internal marketing, widely-established
communications and collaboration is the Japanese ringi system
(consensus management), which
provides employees with the opportunity to discuss and respond
to top management proposals,
focusing on group operations, harmony, open communications
and voluntary participation.
Management does not make decisions on its own, it is
collectively discussed, proposed and
decided. All employees are involved in decision making,
planning and execution of tasks.
Employee satisfaction means individual status and maximum
engagement, and effective
communication contributes to a better understanding of
organizational goals, with consideration

and satisfaction of personal contribution, because then everyone
is clear where the company is
going and what it is trying to do. In this case, internal
communication is not just a set of tools
and tools, but also the way in which the company communicates
with its employees in
accordance with its values. Its role is to transmit information in
a responsible manner in the
company, through different levels and functions, and to assist
other services in their
communication, and ultimately, by establishing a feedback
mechanism, it also has the role of
monitoring. Of course, planned and organized. For, as Bernard
Shaw once said, the biggest
problem in communication is the illusion that communication is
ultimately realized, which is
its ultimate goal. In essence, internal communication should
identify what employees are doing,
think and want, and align the needs and expectations of the
company and its employees, to be
the key to gaining support for company goals and employee
satisfaction. It is estimated that as
much as 60% of the management problem comes from weak, i.e.
poor communication.17

Research shows that 9% of customers are lost due to
competition, and even 68% due to lack of
interest.18
4. INTERNAL MARKETING, COMMUNICATION AND
ALIGNMENT OF
PERSONAL AND ORGANIZATIONAL GOALS
Communication is crucial for successful internal marketing. It
allows employees to understand
and accept business mission, strategy and tactics. The company
must provide adequate
communication to enable each individual to see themselves as
part of the whole. For what is
best for the organization as a whole does not mean at the same
time expressing the interests of
all those people from whom the organization consists and whose
co-operation is necessary to
ensure the efficiency of business. An organization becomes
effective only when its members
align their individual interests and goals with common interests
and goals.
Managers must have 3 goals towards employees:
• To enable them to fully understand and accept what the top
management proposes;

• To indicate that employees are behaving in a manner that he
requires;
• To achieve that employees are more closely identified with the
company, its achievements
and goals.
Adequate business relationships should reflect the harmony
between employees and proclaimed
business philosophy.
17 http://pr.org.rs/interne-komunikacije/ (date of access:
12.4.2018.)
18 http://www.drustvolobistasrbije.org/files/pdf/interna-
komunikacija.pdf (date of access: 12.4.2018.)
389
The basis of such relationships is the constant commitment of
management to employees.
Often, despite the undeniable intelligence and dedication, the
manager does not achieve
success, because he does not realize that his efforts are a

reflection of the efforts of the people
he works with and because he does not devote enough time to
talking to them, listening to their
problems, motives, desires, interests. It will miss management if
it thinks that good and regular
salaries are sufficient compensation for employees. They want a
challenging job, a job that
gives them satisfaction. Deming E. identifies an example of a
well-run enterprise with an
orchestra, in which each musician provides support to others.
Every musician must learn to play
as a soloist, but also by always remembering that he is a
necessary element of the team. The
integration of employees into the collective aims at its greater
homogenization and the
establishment of closer relations between employees, it should
promote harmony and create a
spirit of community, develop the feeling of each member that it
is needed for the company, but
also that the company needs it, which is not a bit simple task.19
The job of managers is to
mobilize and activate the energy of all employees and direct
individual efforts towards a
common goal, to create an environment that supports ethical

healthy behavior and inspires a
sense of shared responsibility, to create a conviction with
employees to work in a successful,
affirmative, significant and good company. This can only be
done by encouraging direct, direct
and open communication, demolishing the walls between the
services and creating a better
understanding of each other's activities, creating conditions for
informal conversations between
employees regardless of their status and position, continuous
learning, progression, effective
training programs, and motivation, encouraging participation,
developing self-control and self-
awareness among employees. The organization functions with
the collective action of groups,
it is made up of people who accomplish common tasks and
between which there is a direct
interaction and organizational coherence of their activities. The
people and organizations they
create, make their relationships based on reciprocal interests
and needs. Bringing individual
goals together with the objectives of the company as a whole is
the key task of modern personnel
management. This is not an easy task, since the individual's

actions are motivated by individual
reasons and can, sometimes, be contrary to the interests of the
company. That is why individual
goals and tasks must be maximally incorporated into the
company's collective goals and
strategy. Individual interests should not be above the general
interests of the company, but even
the goals of the company should not jeopardize the interests of
the individual.
Figure 1: Place of common interest
19 Ristić, Z.: How to create apostles?, Business politics,
Belgrade, November 2002. (p. 63.)
Individual Group
Organization
390
The dimmed surface represents a place of common interest. The
basic questions that are raised

are: How to increase the space of common interests and how to
act within it20? Like a sports
coach, a good manager searches for and finds the best in every
person, encourages employees
to work together in a team, take responsibility and participate in
decision making, is ready to
raise morale, always has an "open door", visits employees at
their workplaces , wants to know
their problems, does not close in the "fortress" of his office, he
is a good listener, he is ready to
hear everyone's opinion, honest and open to everyone, is
persistent, but tolerant, he does not
force his own opinion and he is ready to tolerate others
disagreeing with their attitudes, knowing
the names of their associates and trusting in them, is not
arrogant, open to communication and
does not block information, is honest and principled, never
works behind the back and does not
hurt associates, possible conflicts are resolved "face to face
"And not through papers, reports,
commissions or third parties, does not manipulate people and do
not just tell them what they
want to hear. Such a manager is characterized by the following
characteristics: intelligence,

inspiration, sincerity, honesty, courage, imagination, flexibility,
willingness to cooperate and
ability, ability to create and lead an effective team, energetic,
innovativeness, ability to create
a vision, charisma, democracy, education, creativity ,
competitive spirit, self-confidence, self-
control, cold-bloodedness, calmness, serenity, optimism...
Consistent relationships between
managers and employees are in the interests of both of them.
Cooperation, respect and trust,
should be the backbone of such relationships. This enables
teamwork, creativity and innovative
behavior of employees. Today, there are those who think that
their position allows them to be
solemn and to command, those who do not notice their
associates or notice only a few of their
closest associates. Nevertheless, the commandment may have
resembled the tribal leaders, but
not the business managers, and the days when it was believed
that the dignity was the same as
the firmness are behind us. Managers are not a privileged class;
they are members of teams
rather than bosses of subordinates, they increasingly take on the
role of adviser, instead of

threats and punishments they should promote initiative,
encourage, learn and inspire, not
discourage them, they sound negative and criticize; The
manager should create, not to ruin,
without impatience, without shouting, without hysteria.
Stimulating employees on more
engaged work is done by economic and non-economic
stimulants. Economic stimulants are
more effective in conditions of underdeveloped living
standards, but their importance gradually
decreases with raising the standard of living standards and they
give way to non-economic
stimuli (workplace atmosphere, advancement, social status ...).
There is no unique way to
motivate people, different people start different things,
everyone has their own way of thinking
and doing things. Motivation is not something that can be
provided by a simple "swinging of
carrots in front of a rabbit". There are many reasons why people
are working, and in seeking
the answer to this question, the biggest mistake that can be
made is to assume that all people
want the same. Motivated employees are primarily created:

• By respecting the basic wishes and individual reactions of
employees, by giving a greater
degree of personal responsibility,
• By participating in the formulation of objectives and their
realization; Providing incentives
in the form of prizes, travel, status;
• By establishing clear and acceptable objectives, which provide
a framework for a common
sense of intent;
• By providing an adequate training program for administration
and employees.
5. FINAL CONSIDERATIONS
For many years, success has been based on efficient
management, and the focus on the so-
called. hard organization dimensions, such as technology,
organizational structure, strategy.
20 Gruban, B., Verčić, D., Zavrl, F., Approach to Public
Relations, Pristop, Ljubljana, 2007. (p. 9.).
391

This approach to management gave good results until the 1980s
when it was necessary to create
conditions that would satisfy the new generation of employees
and their ways of looking at
work, values and beliefs, incentives and expectations. That is
why, in the organization and
management of successful companies, the focus is from the hard
to the soft governance
dimensions, such as culture, climate, satisfaction, leedership,
motivation, rewarding system,
communication. Employees are ready to take the initiative and
identify their goals with the
goals of the company if there is a concern for the company
about employees who are educated,
progressing and motivating in continuity. The ability of the
company to take care of employees
depends on recognizing the importance of the concept of
internal marketing, but at the same
time the degree of development of the emotional intelligence of
managers. Specifically, internal
marketing influences the development of organizational
competencies and the improvement of
business performance through the application of marketing as a
philosophy directed to both the

external business environment and human resources that are the
most important instrument for
implementing the strategy and achieving the goals of the
company. This concept implies a well-
built and implemented system of education, motivation and
stimulation of employees as a basis
of their loyalty, without which the management of the company
can not expect optimal results
after the implementation of the concept of internal marketing.
The premise of successful
implementation of the concept of internal marketing is its
putting into the core of the activities
of strategic marketing management, as well as the visible
support of senior management. It is
considered that internal marketing is a prerequisite for
successful external marketing.
Integration of internal and external marketing into a single
system assumes the effectiveness of
marketing as an organizational unit (business function) in an
enterprise. Internal marketing is
an important segment of organizational development and
change, so its non-implementation
can be faced by the management of human resources companies
that are resistant to process

changes and adaptation. Internal marketing strives to connect
and co-operate the employees of
different functional areas, accept the marketing approach by all
employees, motivate them and
satisfy them so that the quality of the provided services and the
delivered product is as good as
possible. The application of internal marketing in our
companies is still not systematically
explored, and occasional data collection on the level of its
application shows that there are many
activities that in their nature correspond to the activities of
internal marketing (e.g. employee
training, selection and rewarding of the best, prize incentive
travel etc.). These activities are
mostly planned and implemented without the existence of a
formal internal marketing plan and
most often form part of the human resources management
practice in the company. Perhaps, in
the wake of unfavorable circumstances, in this region, it is
forgotten how important these all
really are. The economic situation, obsolete system of values
and attitudes, slow penetration of
modern managerial knowledge, the quality of the existing
education program, poor interaction

between science and the economy are just some of the reasons
why this is how it is. The future
requires the provision of a whole set of prerequisites for
successful business, among which one
of the central points is certainly the question: How do
employees agree to work with their heart?
How to act on their perceptions, awareness, expectations,
aspirations...? How do they consent
to identify with the company, all its successes and failures?
There are too many examples in
our territories that talk that gossiping, harassment and plotting,
are used as a powerful weapons,
that the workers gathered in a hall with a boss or other authority
become very uncertain,
nervous, dumb and distrustful, that internal communications are
brought to determining what
an employee needs to say in order to accomplish his tasks, to
put people in responsible and
highly managerial positions according to criteria that cannot be
considered professional. It is
time to change the current perceptions and change, whether they
like it to someone or not. Those
who understand and accept this will be in a huge advantage. We
need to think more about the

future, to learn from those who are ahead of us, to rid ourselves
of political criteria and non-
professionalism in governance.
392
Instead of authoritarianism, intolerance, reliance on social
connections, our managers need to
adorn contemporary practical knowledge and skills, good
organization and business behavior -
that's what we need.
LITERATURE:
1. Bradley, F., Strategic Marketing in the Customer driven
organization, John Wiley & Sons
Inc.Chichester, 2005.
2. Charney Cy, Efficient Manager, Grmeč – Economic review,
Belgrade, 2006.
3. Davoudi, S. M. M., Kaur, R., The link between internal
marketing and human resource
management, Arth Prabhand: A Journal of Economics and

Management, 2012., p. 59.-72.
4. Domazet, I., The role of internal marketing in improving the
quality of human resources,
U: J. Zubović (ed.), Active labor market measures and
employment issues (p. 260–280).
Belgrade: Institute of Economic Sciences, 2011.
5. Gounaris, P., S., Internal market orientation and its
measurement, Journal of Business
research, Vol. 59, 2006., str. 432-448.
6. Egan, J., Relationship Marketing, Prentice Hall, Harlow,
2004.
7. Kotler, P., Marketing Management (11th ed.). Englewood
Cliffs: Prentice Hall, 2000.
8. Little, E., Marandi, E., Relationship Marketing management,
Thomson Learning, London,
2003.
9. Lings, N. I., Greenley, E. G., The impact of internal and
external market orientations on
firm performance, Journal of Strategic Marketing, Vol. 17, No.
1, 2009., p. 41-53
10. Rajkov, M., Sajfert, Z., Entrepreneurial management,
Faculty of Organizational Sciences,
Belgrade, 2002.
11. Gruban, B., Verčić, D., Zavrl, F., Approach to Public
Relations, Pristop, Ljubljana, 2007.
(p. 9.).
12. Paliaga, M., Strunje, Ž., Pezo, H., Application of internal

marketing in enterprises of the
Republic of Croatia, Economic thought and practice, 19, 2010.
13. Ristić, Z.: Internal relations - from loss to profit, collection
of papers: „Social work and
social politics“, Faculty of Political Sciences, Belgrade, 2002.
14. Ristić, Z.: How to create apostles?, Business politics,
Belgrade, November 2002.
15. Zubović, J., Development of the economy based on
investments in human resources and
foreign investments, Institute of Economic Sciences, Belgrade,
2010.
16. Wieseke, J., Ahearne, M., Lam, K. S., Dick, V. R., The role
of leaders in internal marketing,
Journal of Marketing, Vol. 73, No. 2, 2009., p. 123-145.
17. https://www.posao.hr/clanci/karijera/na-radnom-
mjestu/interni-marketing-konkurentska-
prednost-poduzeca/218/ (date of access: 11.4.2018.)
18. http://savjetnik.ba/wp-
content/uploads/2013/04/interni%20marketing%20kao%20integr
acijska%20funkcija%20
menadzmenta.pdf (date of access: 12. 4.2018.)
19. http://pr.org.rs/interne-komunikacije/ (date of access:
12.4.2018.)
20. http://www.drustvolobistasrbije.org/files/pdf/interna-
komunikacija.pdf (date of access:
12.4.2018.)

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