Effect of Internal Marketing Strategy on Employee Performance: Case of Nib Insurance Company

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In service providing industries, people play important role in achieving organizational goal and profitability of the company. However, these employees are affected by the existing internal marketing strategy an organization follows. As different scholars and literatures reveal, happy and satisfied employees would prefer to stay and work in a same organization for a longer time and are productive in what they do. The study target population was employees of Nib Insurance Company who worked there for more than one year. 80 samples of employees were selected based on their convenience and easiness to access. Questionnaire was distributed to selected respondents to obtain their evaluation of the company’s’ Internal Marketing strategy and to investigate the effect of this variables on employees performance. The collected questionnaires were analyzed using descriptive and inferential analyses with the help of SPSS version 20 statistical software program. The study revealed that all internal marketing variables significantly and positively affect employee performance. The regression analysis showed that, of all the independent variables, reward, significantly affect employee performance. Therefore, reward system must be reviewed and should be given attention to overcome the deteriorating income earning and the increasing employee turnover observed in the company for the past three years. Since the study took small sample size and considered only four internal marketing variables, generalizing the result for other service providing industries would be difficult. Therefore, the researcher suggest for further study to be conducted taking larger sample size from different service providing industries and considering other internal marketing elements in to account.



Internal marketing, Empowerment, Training