ABSTRACT
Internal marketing has been the subject of much discussion and debate for a number of years. From one perspective it seems quite straightforward and relatively simple to implement and many practical internal marketing plans and campaigns have been developed. Yet there seem to be a number of unanswered questions. This work, which takes a transaction cost perspective, tries to reach the fundamental issues that underpin internal marketing, and explores a number of issues that require further explanation. This means getting to grips with the appropriate economic framework for investigating internal marketing, for understanding the organisation as a marketplace, and for investigating the characteristics of the employer-employee interface. Accordingly, there is one fundamental question: ‘is internal marketing relevant in all employer-employee exchanges and in all organisations?’
