Referred to as relational IM, it focuses on the creation of effective internal
relationships between people at all levels in the firm via the development of service
and customer-oriented individual mindsets, as opposed to transactional IM which is
‘product’ focused. The underlying principle is that if the firm implements effective
exchanges between itself and various groups of employees, this will eventually
lead to successful exchanges between the firm and its customers. Gronroos (2000)
argues strongly that without well-functioning internal relationships, external
relationships will not develop successfully. It is in this sense that one can argue that
Internal Marketing acts as a culture change programme which aims to transform the
organisation along the lines of service quality and customer focus. While the rhetoric
of Internal Marketing is all embracing, in reality, companies tend to focus merely on
those employees involved directly in service encounters – the front line or contact
staff – with the view to ensure that they improve their performance in the interaction
with customers. Support and technical staff are usually left out. This creates a ‘them
and us’ culture, which is often a source of conflict and dissatisfaction rather than
harmony.