American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 96 | P a g e INTERNAL MARKETING IN TRAVEL AND TOURISM COMPANIES AND ITS IMPACT ON ENHANCING MARKETING EFFICIENCY 1Asst. Prof. Dr. Alaa Abd Al Hussein Radhi, 2Aymen Qasim Hamzah Mihyawi 1-Iraq-University of Kerbala- College of Tourist Science Department of Tourism studies. 2-Directorate of Education Karbala / Department of Vocational Education / Karbala Institute of Tourism and Hospitality 1dr.alaa.rahdi@uokerbala.edu.iq 2aymankasim9988@gmail.com Abstract The study aims to show the impact of internal marketing in tourism companies in terms of enhancing their marketing efficiency, A random sample of 70 managers working in these tourism companies was chosen, and the study relied on a set of statistical methods in presenting, analyzing and interpreting the study information, The study concluded with a set of conclusions, the most important of which was The study demonstrated the lack of interest of the travel agencies surveyed in the marketing activity in general and the lack of interest of senior management in marketing management in particular by not observing the scientific principles in this activity. Keywords: Internal Marketing, Marketing Efficiency, Tourism Companies. Introduction Traditional marketing trends have always focused on the relationship between the organization and the external customer, and this is called (external marketing), but in the recent period, many researchers have been interested in the concept of internal marketing, especially with regard to service business organizations, as they considered it an essential element for the success of those organizations, because it considers all employees The employees within the organization are internal customers who depend on them in achieving the goals of the organization, as it depends on the interest in human resources and their development represented by employees and workers as a strategic goal for it in order to obtain high-quality services that achieve customer satisfaction and are consistent with their desires. As successful business organizations are organizations that are not concerned with providing products to customers only, but rather care about their employees and see them as internal products that must be taken care of because attention to workers will result in obtaining products and American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 97 | P a g e services of high quality that are consistent with the desires and requirements of customers. This study comes to find a solution to a problem that tourism organizations suffer from, which is the lack of awareness of the importance of internal marketing and its reflection on marketing efficiency and the quality of service provided to customers, and then not achieving their satisfaction. The importance of this study is evident in its attempt to make tourism organizations able to use internal marketing in a beneficial way in order to provide quality services that achieve customer satisfaction . The study aims to know the extent to which internal marketing is applied in tourism organizations and agencies, and to highlight its role in marketing efficiency, achieving the quality of service provided to the customer, and the possibility of achieving customer satisfaction. Section (1) The Methodology 1.1 The Problem The problem of the study can be determined by asking the following questions: 1. Is there a clear perception by the management of the researched travel agency about internal marketing? 2. Can employee satisfaction be achieved by adopting internal marketing, and does it reflect positively on marketing efficiency, on the quality of service provided to customers, and on their level of satisfaction ? 3. Does internal marketing aim to attract distinguished employees and put them in direct contact with customers? 4. Does the travel agency management seek to adopt internal marketing? 1.2 The Importance of the Study The importance of the study stems from the importance of internal marketing as one of the solutions that can be adopted to enhance the marketing efficiency and competitive position of travel agencies, which is a critical indicator in enhancing the success of the agency or not, and the importance of this study expands to include a field dimension that is added to the theoretical dimension through field analysis of marketing efficiency indicators. in travel agencies. 1.3 Aims of the Study 1. This study aims to highlight the essential role of internal marketing in enhancing the marketing efficiency of travel agencies . 2. This study attempted to explore the relationship between internal marketing and marketing efficiency in the research community. American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 98 | P a g e 3. This study modestly contributes to enriching marketing and administrative thought with two main dimensions: marketing efficiency and internal marketing. 1.4 The Hypotheses 1. The first main hypothesis: There is a statistically significant correlation between internal marketing and marketing efficiency. 2. The second main hypothesis: There is an effect relationship for the elements of internal marketing and marketing efficiency. 1.5 The Sample of the Study The study community consists of travel and tourism companies operating in the cities of Baghdad, Erbil and Basra, while the study sample consisted of 70 managers of these companies. 1.6 Statistical Methods The study relied on a set of statistical methods, as follows:- 1. Arithmetic mean 2. standard deviation 3. Relative importance 4. Simple correlation coefficient 5. Simple regression 6. Coefficient of determination (R2) 7. F-Test: It was used to test the extent of the influence of the independent variables on the dependent variable. If the calculated (F) is greater than the tabular (F), this indicates that there is a significant effect. And the Researchers relied on the five-point Likert scale in the questionnaire. Section (2) Internal Marketing 2.1 The concept of Internal Marketing The concept of internal marketing appeared officially at the end of the seventies to constitute one of the tools that contribute to improving quality and quality in service institutions, and the most important base on which this concept is based is counting employees as an internal market, or internal customers and jobs as internal products, and applying various marketing techniques and methods This market is based on marketing study, market segmentation, marketing mix development, and other well- known marketing activities . Scientific sources indicate that there are a number of competing concepts and activities that address internal marketing. In order to verify the validity of these competing concepts, there must be a set of criteria on the basis of which each concept is evaluated . American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 99 | P a g e Figure No. (1) Internal Marketing In 2000, Rafiq & Ahmed, 2000: 450 identified the main elements of internal marketing: 1. Motivating and satisfying employees . 2. Customer guidance and satisfaction. 3. Coordination and integration between common functions. 4. Execute the organization's specific strategy or strategic functions. Table No. (1) Some researchers contributions to the concept of internal marketing Researcher name concept Kotler,2006:83 The process of training and motivating employees in order to serve customers in the best possible way. Zeithaml &Bithor,2006:89 The process of selecting, training, employing, encouraging and rewarding qualified workers and providing equipment and technology in order to deliver service with the required quality. Kenneth&baack,2004: 287 An organization's integrated internal marketing communications efforts are directed toward overseas customers. Source: Prepared by the Researchers American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 100 | P a g e 2.2 The Importance of the Internal Marketing Internal marketing derives its importance for the organization based on three axes: (Paul, 2000, 21). A. Change Management: The organization adopts making major changes, or introducing new systems in the performance of its work, such as deciding to raise the level of profits or use advanced technology, or other major changes that are usually inappropriate, meaning that they contain a kind of surprise and impulse. Or imposed by certain circumstances, and here internal marketing has an important role in accepting and making these changes a success . B. Building the public image: The image of the organization is one of the basic elements in the management system of the service organization, and the image is a media tool that the organization uses to influence (employees, the employment market, customers, etc...) with the aim of -: 1. strategic location . 2. Entering the market effectively. 3. Facilitating access to various resources, or at least at the lowest cost. 4. directing the behavior of individuals to increase motivation and productivity . Here, internal marketing plays an important role through internal communication and introducing points of distinction, The organization, with the individuals working in it, and through them is trying to position themselves in the minds of the market, or the target sector, so it is said that all employees are potential ambassadors for the organization . C. The organization's strategy: the implementation of any strategy requires cooperation and coordination between the various individuals and functions, and internal marketing efforts work to reduce the intensity of overlap and functional conflict, and to build the required commitment to implement these strategies in the best way (Al-Akhdar, 2010: 17-18). And (Rafiaq, & ahmad, 2000:453) emphasize the importance of internal marketing through the following points: 1. Creating a stimulating work environment that achieves customer satisfaction. 2. Directing employees to reach the required level of job satisfaction . 3. Achieving consistency and integration in the activities related to the organization's internal staff . 4. Participate in applying the marketing strategy internally, as is the case in applying it externally. 5. Applying the organization's strategy in a comprehensive and specific manner in order to achieve the employees' long-term goals American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 101 | P a g e 2.3 The Objectives of the Internal Marketing Internal marketing generally aims to achieve the following (Al-Akhdar, 2010: 19):- 1. It helps workers to understand and assimilate the organization's mission, objectives, and work system and methods In which . 2. Motivating workers and stimulating their motivation towards accomplishing their jobs efficiently, and changing their attitudes and behaviors towards customers (especially those in direct contact with customers). 3. Obtaining employees' commitment to the organization's plans, strategies, and culture . 4. Managing changes to move from the usual way of doing things to working in the desired way to achieve success . 5. It contributes to building an organizational culture based on providing service to the customer and its quality in a way that leads to maintaining quality standards in service delivery. Section (3) Marketing Efficiency 3.1 The concept of Marketing Efficiency Many writers and studyers have shown that efficiency is viewed from the perspective of providing benefits capable of creating a balance in the performance of the organization, meaning that efficiency in the organization represents the criterion of rationality in the use of resources, both tangible and intangible, as the organization that aims for growth and development must secure the possibility of continuing the flow of its resources In order to operate effectively and continuously, this is especially so since the reality of the contemporary environment is characterized by limited available resources, which makes the organization suffer from a scarcity of access to resources in the quantities and qualities necessary to perform its activities, so the organization must adopt the rational method in heading towards optimization in the use of available resources (Idris and Al-Ghalibi , 2009, 46), since efficiency means the achievement of specific results (outputs) with the least use of resources (inputs) and focuses on maximizing the use of available resources at the lowest costs (Thompson, 1994, 164). Table No. (2) The concept of marketing efficiency according to the opinions of some writers and researchers Researcher name Concept Hooley & et al 1998, 32 Do things right Stair & Reynol 2000 , 10 Achieving as many outputs as possible with as few inputs as possible Horngr & et al 2002 , 895 The relationship between the amount of inputs used to achieve a given level of output Source: Prepared by the Researchers American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 102 | P a g e In general, efficiency, according to what (Kiggundu), (Abell & Hammond), (Narayannan & Nath), Steers, Ungson & Mowday), is related to doing things correctly, and it aims to make the best use of resources (Abu Fara, 2001, 256). When implementing their marketing strategies and plans, organizations seek to obtain customer satisfaction by meeting their needs and desires better than competitors and at a lower cost, and this is done through efficient marketing performance and through integrated services accompanying the process (Al-Bakri, 2008, 394). It may seem to some of them that simply increasing the product’s share of the price is marketing efficiency, or that simply getting customers to get their needs of goods and services at cheap prices is efficiency in itself, although such beliefs are often shrouded in doubt or ambiguity and may be inaccurate in most cases (tanners , 2007, 185) Therefore, marketing efficiency can be defined as improving marketing outputs by improving inputs, or optimizing the use of marketing activity inputs to obtain the best marketing outputs. (Rawi and Al-Sanad, 2001, 32), or is the relationship between the amount of marketing inputs used to achieve a certain level of marketing outputs (Horngren, et al, 2000, 229). 3.2 Indicators of Marketing Efficiency (Hicks & Gullet) and (Al-Salami) identified the most important indicators of marketing efficiency as follows (Abu Fara, 258, 2001): - 1. Efficiency Through Costs: The level of efficiency increases if costs can be reduced without affecting the quality of the outputs, and attention should be paid to all types of marketing costs and their multiple divisions (direct costs, indirect costs, variable costs, and non-variable costs). 2. Efficiency through employee satisfaction: The satisfaction of users (marketing workers) who perform various activities is an indicator of high efficiency, as these users are the ones who perform activities that achieve contact with the surrounding environment and contribute directly to achievement within the established standards. As for (Al-Diwa J, 2000, 35) and (Al-Dabbagh, 2007, 195), they identified indicators of marketing efficiency by dividing them into (operational efficiency and price efficiency): 1. Operational (technological) efficiency: It is mainly limited to reducing costs as a result of improving the means and services of marketing functions (refrigerated and frozen storage, means of transport, machinery related to gradual packaging, sorting, and other operations). (Al-Dabbagh, 2007, 195). That is, operational efficiency is related to most marketing activities, such as price movements, how products are distributed and coordinated, which works to reduce inputs (marketing costs). (Khalil, 1980, 61). It is also represented between inputs and outputs, and it mainly focuses on reducing the costs of achieving marketing American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 103 | P a g e activities with the stability of the outputs of those activities (Al-Hadithi and Al- Shammari, 2002, 123). That is, operational efficiency is summarized in the assumption that the basic nature of the outputs of goods and services remains unchanged, and that the focus is mainly on reducing the costs of the inputs that perform the function (Al-Diwaji, 2000, 34). 2. Price efficiency (economic): It specializes in improving the processes related to buying and selling and price considerations for marketing procedures, so it will remain according to considerations of customer response to it, and perhaps the best measure in the conviction of production officials for marketing procedures is what customers will pay in the market (Al-Duah Ji, 2000, 35). 3.3 Methods for Measuring Marketing Efficiency Previous studies and research provide us with many approaches and methods through which marketing efficiency measures can be determined, and this is done through two types of measures-: • First - Quality Measures These measures are based on the extent of customer satisfaction with the organization's products compared to other competitors, and customers can realize the quality of the products offered to them by distinguishing between a number of different levels of the product, which are as follows (Al-Bakri, 2008, 200-201(. 1. The expected quality It is that degree of quality that the customer believes should be present in the product. This is often difficult to achieve because of the discrepancy between the characteristics, needs and desires of customers. 2. Perceived Quality It is that degree of quality that the customer discovers when he purchases or obtains the product, and it may be more or less than what he expected, which is reflected in the degree of his satisfaction or not. 3. Standard Quality It is that level of quality provided by the organization that matches the basic specifications previously defined and planned by it. • Second - quantitative measures It is mainly related to the financial performance of organizations in the market, and it is one of the most reliable measures by researchers and writers in the field of marketing and about how to measure marketing efficiency and the indicators used in that. The indicators of marketing efficiency take into account the inputs and outputs of marketing activity and the forms of the relationship between them. They refer to the relationship between the outputs of marketing activities and the sources required to produce them. They are used when making decisions about allocating sources for activities and products (Gram, 1993, 15). American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 104 | P a g e Section (4) Statistical Analysis of the Study The research relied on the questionnaire mainly in the research. Likert pentagonal scale was used to measure the paragraphs of the scale distributed over five paragraphs and for each paragraph weighed strongly agreed (5 degrees), agreed (4 degrees), neutral (3 degrees), disagreed (2 degrees), and did not agree severity (1 degree), and the following is an analysis of the axes of the resolution:- 4.1 The Results of The Descriptive Statistical Analysis of the Characteristics of the Vocabulary of the Research Sample This section aims to describe and diagnose the opinions of the researched sample about the research variables, which are the Internal marketing as an independent variable and the enhancing marketing as a dependent variable, within the following paragraphs: Table No. (3) Distribution of sample vocabulary according to demographic Elements By Gender By Age By academic qualification By years of experience gender R. % age R. % academic qualification R. % years of experience R. % male 47 67% 21-30 7 10% B.Sc. 27 53% less than 5 years 11 20% female 23 33% 31-40 21 30% master 33 33% From 6 - 10 15 27% 41-50 15 21% PhD 10 14% From 11 - 15 22 30% 51-60 22 31% From 16 - 20 12 13% 61 over 5 8% 21 or more 10 10% Total 70 100 Total 70 100 Total 70 100 Total 30 100 Source: Prepared by the Researchers 4.2 The Results of the statistical analysis of the response of the research sample towards the research variables. In this part, the arithmetic mean, standard deviation, and the relative importance of the research variables will be extracted. NO Questionnaire paragraphs average values standard deviation Importance 1 The travel agency seeks to create a good organizational climate for employees through the selection and appointment process. 4.35 0.98 %12 2 The travel agency seeks through the process of selection and appointment to attract workers with experience and competence in a manner that ensures the achievement of a competitive advantage. 4.69 0.75 %11 3 The travel agency uses various methods in implementing training programmers 4.76 0.27 %13 4 The travel agency prepares training programs capable of developing the capabilities and skills of the employees. 4.86 0.63 %12 5 The system of incentives and rewards contributes to improving the level of employee performance and their loyalty to the travel agency. 4.78 0.81 %14 American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 105 | P a g e Table No. (4) Results of the statistical analysis of the independent variable Internal marketing. Source: Prepared by the Researchers The results of the descriptive statistical analysis of the paragraphs of the questionnaire related to the first variable (Internal Marketing) in Table No. (4) show that the trends of the research sample were positive towards all paragraphs, because the arithmetic averages for the performance of the study samples are greater than the average measurement performance (the hypothetical arithmetic mean equal to 3 for the scale Likert quintuple), and the standard deviation is less than half of the arithmetic mean, and the relative importance was close and high, where the average response to the Internal marketing variable was (4.541) and the standard deviation was (0.718). Table No. (5) Results of the descriptive statistical analysis of the dependent variable (Enhancing marketing) NO Questionnaire paragraphs average values standard deviation Importance 1 Our company focuses on developing its tourism services by adding special offers. 4.56 0.89 %13 2 Our company's offers are unique and distinct compared to similar offers in the market. 4.65 0.66 %12 3 Our company provides tourism offers that are characterized by lower prices compared to competitors. 4.81 0.56 %13 4 Our company supports research and development activity to develop its offers and provide new and unique tourism services compared to its competitors. 4.85 0.50 %12 5 Our company follows modern techniques in low-cost marketing, such as marketing tourism products through Internet sites (Facebook, Instagram, etc.). 4.71 0.63 %13 6 Our company seeks to satisfy customers by providing high quality tourism services and offers. 4.78 0.80 %12 7 Our company has obtained certificates of appreciation for its excellence in performance. 4.49 0.71 %13 8 Our company cares about customers' opinions in order to develop its tourism offerings compared to its competitors. 3.61 0.55 %12 Total 36.46 5.3 %100 Average response for all items 4.557 0.662 Source: Prepared by the Researchers The results of the descriptive statistical analysis of the paragraphs of the questionnaire related to the dependent variable (Enhancing Marketing) in Table No. (5) show that 6 The system of incentives and rewards includes all employees without exception. 4.83 0.87 %14 7 Workers are treated as the most important tool in disseminating information to customers 4.25 0.65 %11 8 The agency provides an updated and accurate database for its clients. 3.81 0.79 %13 Total 36.33 5.75 %100 Average response for all items 4.541 0.718 American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 106 | P a g e the trends of the research sample were positive towards all paragraphs, because the arithmetic averages for the performance of the study sample members are greater than the average of the measurement tool, and the standard deviation is less than half of the arithmetic mean, and the relative importance was close and high, where the average response to the enhancing marketing variable was (4.557) and the standard deviation (0.662). 4.3 Testing the Research Hypothesis In this paragraph, Simple Linear Regression was used for the purpose of testing the direct effect relationships between the dimensions of the main research variables, as well as using the coefficient of determination (R2) to explain the influence of the independent variable on the changes that occur on the dependent variable as well as the standard coefficient of regression (Beta). Which measures the response of the dependent variable when the independent variable changes with one standard degree. Table (6) shows the results of the impact Internal marketing (X) in Enhancing Marketing (Y). Table No. (6) Results of the impact Relationship between Internal marketing and Enhancing Marketing It also appears from Table (6) that the value of the interpretation coefficient (R2) amounted to (0.439), which means that the two variables, internal marketing, explain (43.9) percent of the changes in marketing efficiency, while the remaining percentage (56.1) is explained by other variables that are not included in the study plan. The foregoing shows the existence of a positive multiple correlation relationship between internal marketing with marketing efficiency, which means accepting the main hypothesis that states (there is a statistically significant multiple correlation relationship between internal marketing with marketing efficiency. Section (5) Conclusions and Recommendations 5.1 The Conclusions 1. The study proved the validity of the research hypothesis, and the existence of a significant correlation between the two variables of the study, which indicates that the travel agencies are the field of study, the more they rely on internal marketing, dependent variable independent variable Enhancing marketing (Y) value F degree of confidence 𝑹𝟐 R Computed Tabular Internal marketing (X) 72.4 40.615 4.889 0.99% 0.439 Relationship type A positive, statistically significant relationship at a significant level of 1% . American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 13, Feb., 2023 107 | P a g e this is reflected in the enhancement of marketing efficiency, as well as the confirmation of the first hypothesis. 2. The results of the analysis also showed that there is a significant effect relationship between internal marketing and marketing efficiency, which confirms the second hypothesis. 3. The study demonstrated the lack of interest of the travel agencies surveyed in the marketing activity in general and the lack of interest of senior management in marketing management in particular by not observing the scientific principles in this activity. 4. The absence of any activity in the field of tourism marketing research and what is related to tourism supply and demand, and if it exists, it focuses on historical data and does not take into account the opinions of tourists 5.2 Recommendations 1. Providing periodic training programs for the employees of the travel agencies in question because of its importance in qualifying them and enhancing their capabilities. 2. 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