Marketing in professional services: a cross-sectional exploration into the application of internal marketing

This study provides empirical evidence which suggests that professional services organisations within Australia do not readily identify or understand internal marketing (IM). This is despite IM’s 20 year evolvement and its seemingly close conceptual alignment to marketing and human resources management. The findings indicate that IM is practised, albeit with varying degrees of sophistication, in order to execute wide ranging projects related to marketing and human resources (HR). Multiple cases were used to allow for rich theory building, with seven organisations including management consulting, accounting, law and financial services. A total of 19 in-depth interviews were conducted with internal users (client-facing personnel) and enabling (marketing and HR) practitioners. It was found that IM is not a readily identified term and its application is predominantly within functional boundaries, despite a philosophical appreciation of its potential organisation-wide benefit and importance for the organisation. Introduction and Purpose Discourse on internal marketing has increased over the past two decades, reflecting a growing level of sophistication and interest amongst academics and practitioners. Although early IM literature draws principally on the microeconomic paradigm including economics, learning theory, cognitive and social psychology, largely within the context of marketing services (Fullerton and West, 1996; Gronroos, 1982; Lings, 2004; Webster, 1992), recent constructs have broadened the term to include organisation theory, political science and sociology, with particular emphasis on the services sector (Arndt, 1983; Gronroos, 2000; Rushton and Carson, 1989; Tansuhaj et al ., 1988; Webster, 1992). The IM concept is socially constructed and is context-specific (Ahmed et al ., 2003) who rationalise this claim by suggesting that given its holistic nature, IM “cannot be understood without relating the concept to the company, organisation or person who gives meaning to it” (p.1186). This contextual conceptualisation immediately presents a number of challenges related to the particular perspective one assumes. IM can be seen to operate at a strategic organisational level or a tactical, functional perspective. The current debate on IM suggests it should work on an integrated level (Ahmed and Rafiq, 2003; Ballantyne, 2003; Varey and Lewis, 1999; Webster, 1992). Although several recent studies attempt to explain how this is achieved, the findings suggest there is still a gap between current IM conceptualisations and application (Ashill et al ., 2003; Karantinou and Hogg, 2001; Papasolomou-Doukakis and Kitchen, 2004). A single study into the conceptual legitimacy of IM which focuses on understanding current implementation practices and rationale by a range of practitioners including marketing professionals, client-facing and other enabling professionals including human resources, has yet to be conducted across a number of different professions within the professional services industry in Australia. The aim of the present research is to address this gap.