Abstract:
Internal marketing stress the importance of the Marketing concept, internally, within the firm, by
focusing on the employees and providing a source of competitive advantage. Empowered and
satisfied employees will provide excellent service and highly contribute for the success of a
business. This research examined the effects of internal marketing on organizational
performance at Ethio telecom at Addis Ababa. To achieve the objectives of this study descriptive
survey and explanatory research design was used. Data was collected through questionnaire from
a sample of 293 employees that were selected using simple random sampling method. The data
collected from the questionnaire were analyzed using statistical tools such as mean, standard
deviation, correlation, and multiple regression analysis. The results of this study indicate that,
internal marketing practice dimensions such as (motivation, training, empowerment, and
communication) have positive and significant relationship with organizational performance. The
finding of the study indicates also that employees were moderately satisfied with the internal
marketing dimension and organizational performance. The results also indicate that, the four
internal marketing dimensions (motivation, training, empowerment, and communication) have
positive and significant effect on organizational performance. Furthermore, the aforementioned
internal marketing dimensions significantly contribute 49.2% to organizational performance.
Based on the findings of the study, the researcher forwards sound recommendations which have
to be done before, during and after assessment of internal marketing.
