The Effect of Internal Marketing on Internal Branding : An Empirical Research on Participation Banks in Turkey1

Abstract

In today’s geography where competition is increasing with globalization, businesses have to maintain their activities with different methods and models than ever before. Two essential factors that will make a business different from others are ensuring the employee satisfaction and branding. The concepts of internal marketing and internal branding offer a significant competition advantage to businesses in this context. The purpose of this paper is to evaluate the effects of internal marketing practices on internal branding practices in the participation banking sector in Turkey. The study employs data collected from a survey involving 524 participants. In the analysis part of this study, exploratory factor analysis, confirmatory factor analysis and structural equation model were used. According to the results of the study, it was determined that internal marketing practices affect internal branding practices. An other important result of the research is that employees who are motivated and trained with internal marketing practices are quite important factor in the success of the branding process of their affiliated business or organization.