Abstract
A strong internal marketing strategy can be critical to achieving and sustaining a competitive advantage as well as driving organisational change and enhanced organisational performance. This study sought to determine the influence of internal marketing mix elements on the satisfaction levels of recently employed graduates (GradDPs) within the retail banking industry in South Africa. The study also identified links between the satisfaction of GradDPs and their affective commitment in this context. A census approach to generating data was applied in the study by using a person-administered and an electronic survey method. Regression analysis was used to test the relationships proposed in the study. The results indicated that internal marketing significantly influences GradDP employee satisfaction within retail banks in South Africa and that a positive relationship exists between GradDP employee satisfaction and their affective commitment. The study results allowed for recommendations that retail banks provide training and support programmes to assist managers in developing a more participative style of leading. Such programmes would assist leaders in consulting employees more often and ensuring that they have sufficient autonomy when executing their work. It would also help leaders to create a safer GradDP employee environment that fosters openness, risk-taking and idea generation.
Highlights
The growth of the service sector worldwide has led to services being considered as one of the most important sectors in the world (Global Services Forum, 2013; CIA, 2012; Global Entrepreneurship Monitor, 2011; Mishra, 2010)
It becomes increasingly important for organisations to develop an innovative approach in terms of their internal marketing strategy development that is built around mutual value creation, education, development, training, empowerment and continuous engagement to ensure greater graduate development programmes (GradDPs) employee satisfaction, and employee commitment
An internal stakeholder analysis will assist the bank in identifying and emphasising the most appropriate internal marketing mix elements that can assist in enhancing GradDP employee satisfaction, which can result in stronger affective commitment amongst this category of employees
Summary
The growth of the service sector worldwide has led to services being considered as one of the most important sectors in the world (Global Services Forum, 2013; CIA, 2012; Global Entrepreneurship Monitor, 2011; Mishra, 2010). For this reason a market-driven strategy that enables retail banks to deliver superior quality is essential as service quality is the only real differentiator and key to building a competitive advantage (Culiberg & Rojsek, 2010:152, Kotler et al, 2010) Since it is the bank’s employees who create the service experience, the employee as the internal customer becomes the organisation’s most valuable asset. For this reason, retail banks in South Africa have increasingly focused on recruiting at the graduate level, leading to the establishment of graduate development programmes (GradDPs) (Leonard & Murphy, 2013). An internal marketing programme aimed at employees and the use of the extended services internal marketing mix (internal product, internal price, internal distribution, internal promotion, internal people, internal process and internal physical evidence) could enhance employee satisfaction which in turn could enhance employee levels of affective commitment resulting in higher retention rates (Illiopoulos & Priporas, 2011; Calisir, Gumussoy & Iskin, 2011)
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