Abstract—Businesses in 21st century operate in ultra-competitive, dynamic and effervescent economies enabled by powerful machines & technology gadgets. The very existence of organizations in this digital maze depends on translating incredible amounts of data into powerful knowledge for decision making through scientific methods & statistical innovations. The job of advanced statistical techniques such as Multivariate Analysis is to illuminate, organize and interpret complex data with relative ease & luxury. This research uses the concept of Internal marketing to understand application of Principal Component Analysis (PCA). The study empirically tests data collected of 322 respondents through structured survey in 60 branches of 8 leading commercial banks in the region. The questionnaire was developed using 20 items based on extensive literature review. The results confirm the performance of proposed framework which can be utilized as statistical & managerial tool for employee development & organizational effectiveness. The components extracted are; motivation, understanding & differentiation, dissemination of information, strategic reward, training and inter-functional coordination.

Index Terms—factor analysis, principal component analysis, internal marketing, employee development, statistical package for social sciences (SPSS)

Cite: Usman Ali Warraich, Muhammad Awais, Rakesh Parkash, and Basheer Ahmad, "Internal Marketing: An Application of Principal Component Analysis," Journal of Advanced Management Science, Vol. 2, No. 1, pp. 55-60, March 2014. doi: 10.12720/joams.2.1.55-60