The scope of internal marketing: defining the boundary between marketing and human resource management

The various extant formalizations of internal marketing appear to suggest that functions traditionally the preserve of the personnel function (such as attracting, developing and motivating staff) be subordinated to marketing. This paper attempts to define the boundaries between marketing and the personnel function. The paper further examines whether the marketing concepts and tools such as the marketing mix, segmentation and marketing research can be applied to the internal markets. For instance there are problems with the definition of product. What are internal customers buying? How are they paying? Can customers really be treated as customers? This is especially pertinent as the key difference between internal and external customers is that internal customers can be “coerced” into “buying”. This is because of the contractual nature of employment which gives the personnel function the coercive power to enforce compliance. It is suggested, therefore, that a clear understanding of the nature and scope of internal marketing is essential for its effective implementation.