THE EFFECT OF INTERNAL MARKETING ON EMPLOYEES’ CUSTOMER ORIENTATION IN THE CASE OF COMMRCAL BANK OF ETHIOPIA NEFASILK LAFTO - SUBCITY

Abstract

On the one hand the importance of internal marketing has become one of the main concerns for many organizations, especially in the service context. On the other hand, market orientation is popular due to its contributions to business performance and positive customer responses. Customer orientation plays a key role for any organization in the world to empower marketability of the firm. Now a day’s most of the organizations have started to consider internal marketing to encourage market orientation as an important part of their business success and internal marketing is taking employees as the most invaluable asset of an organization and treating them as internal customers because their result in gaining competitive advantage by the organization respected. Even though internal marketing and customer orientation are the master key of any organization to empower organizational performance limited research were conducted so far, so that is the case why this study was conducted. The main objective this study was to assess the effect of internal marketing on employees’ customer orientation in Addis Ababa, Nefas Silk sub city commercial bank of Ethiopia. To achieve the research objective the researcher used mixed research design and multistage sampling technique with stratified sampling technique were employed. From the total population140 respondents were taken and the collected data was analyzed by using ordered probit with the help of STATA software version 13.The finding confirmed that internal marketing and employees’ customer orientation have linear relationship. All the independent variables are positively and directly related to customer orientation particularly Nefas silk sub city CBE. Internal marketing (training and development, communication, motivation, Job satisfaction and organizational commitment) are significant. Therefore banks are recommended to consider internal marketing as it is the central part of the bank to achieve their organizational goal or productivity.