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MARMARA UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION PROJECT FOR MARKETING MANAGEMENTI to ASSOC.

PROFESSOR EMNE OBANOLU

METN DLMA - 135711080 NURGL SOYLU - 135709006 FURKAN BAKURT - 135710075

14.01.2013

UUR YILDIRIM - 135710089

Demographics of Turkey Religion and Secularity .3 Islam, Christians 4 Demographic Informations 5 Ethnic & Religious Minorities in Turkey, Recent Trends in Situation of Minorities........................6 Refugees and Asylumseekers.........................................................................................................7 Family Life and Structure in Turkey. 9 Population .11 Religion, Turks .12 Kurds, Arabs, Azerbaijanis, Cechens. 13 Circassians, Georgians, Laz. ...14 Economy of Turkey Macro-economic Trends ..15 Main Economic Sectors (Agricultural, Transport).. .16 Tourism Sector, Natural Resources.. 17 The Turkish Economy in 2005 2009.19 Period 20082009 Results, Limitations and Future Research. ..21

Natural Factors of Turkey.............................................................................................................2 2 Climate, Landforms ..23 Regions .24 Technology & Development in Turkey.26 Key Trends & Developments .28 Culture & Marketing in Turkey Culture. .29Fin dings of Cultural Impact on Marketing30 Cultural Marketing 31 Social and Cultural Environment in Turkey.32 Impact of Culture in Marketing, Marketing in Turkey.33 Conclusion ..34 Sources .35

Demographics of Turkey
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This article is about the demographic features of the population of Turkey, including population density, etnicity, education level, health of the populace, economic status, religious affiliations and other aspects of the population. Turkey's population doubled only 6 times through the 20th century, which is a low figure. The population was relatively high in 1900, but much of the explanation comes from the tragic events in the early years of Turkish republic, and the cleansings of Christians from the emerging Muslim state, when between 3 and 5 million Armenians and Greek were killed or driven out of their homelands. Parallel to this, there also was a substantial immigration of Turks from former Ottoman territory. At present the population growth is 1.3% per year, which is neither high nor low. The fertility rate is 2.2 children per mother, which is only marginally higher than the critical level of what is needed to keep a stable population. Birthrate is 3 times the death rate, but with a median age of 28, Turkey seems to close in on European countries and may well drop to zero growth relatively soon. Emigration used to be of great importance, but today the direction of migrations has turned, and Turkey now sees a net immigration of 45,000 people a year. Population projections stipulate more than 100 million inhabitants by the middle of the century, but the factors mentioned above may well make it stabilize at around 90 million.

Religion and Secularity


99% of the Turkish population is Moslem. The remaining is composed of Orthodox Christians, Gregorian Christians, Catholic, Suryani and Protestant Christians, and Jews. Although most of the population is Moslem, Turkey is a secular country and everyone has freedom of religion and beliefs. No one can be forced to participate in religious ceremonies or rites against their will and no blame can be attached to anyone because of their beliefs. The 600 years Islamic reigned Ottoman empire collapsed in the 1920's and after the independence war leaded by Mustafa Kemal Ataturk the principle of secularism introduced to the Turkish people. Turkey is the only country among the Islamic countries which has included secularism in her Constitution and practices it. With the abolition of the Caliphate and the Ministry of Shariah (Islamic Law) and Foundations, on 3 March 1924 during the Republic period, significant steps were taken on the course to secularism and by providing the unification of education and later the unification of the judiciary. These steps were followed by other steps such as the Hat Reform, closure of the Sects and Convents, changing the weekly holiday from Friday to Sunday and the adoption of the Latin alphabet and the Gregorian calendar. Finally, with an amendment put into practice with Law No. 3115 dated 5 February 1937, "secularism" became a constitutional principle. Although the concept of "secularism" was included in the Constitution of the Republic of Turkey in 1937, the principle of secularism had existed "de facto" since the foundation of the Republic. Islam The Islam religion mainly has three different styles ,in Turkey. The style where most of the

people (nearly %80) believe in is the "Sunni" belief which is a mild type of Islam. The second type is the "Alevi" belief. This style has different peculiarities in its self and the main difference from the Sunni belief is the special value of Caliph Ali and his followers. Nearly 18% percent of the Moslems are Alevis. The third main style is the "Sii" belief that is similar to the Alevi belief in many thoughts but could be seen as stricter style. Although it is not a style of belief but a sect, "Beltasilik" is also widely believed among the Moslems in Turkey. It could be seen as a similar style of Alevi belief. Islam... Christians According the current numbers the main Christian population in Turkey is the Armenian community. The Armenians do divide in three styles. The Catholic , Protestant and Gregorian Armenians. The main community is the Gregorian church which is directed by the Armenian Patriarch in Istanbul. The Patrick Mutafyan who is elected in 1998, is connected to the main Gregorian Church Echmiadzin in Armenia. The second Christian Population is the Greek Orthodox Community. There are five main Orthodox church communities in the world. They are Istanbul, Rome, skenderiye, Antioch, and Jerusalem. The Patriarch in Istanbul is seen as the major within these five and uses the "ecumenical" name which means home in Greek and covers the whole world. The Istanbul Greek Orthodox Patriarch is leading the Orthodox churches in the United States, South America, Australia, Crete and 12 island of Greece. The Patrick is Bartalemeos who is elected in 1991. In 1999, The president of the United States Bill Clinton and his family has visited the Patriarch. The third Christian Community is the Suryani Community. Their center is Syria and mostly they live in the areas of Mardin and Urfa which is near to the Syrian Border. They have many churches and monasteries in the area which is also very much worth to see in means of historical value. The fourth Christian Community is the Catholic Community. They are connected to Church in Istanbul leaded by apostolic Vikerya which is assigned by the Pope in Vatican. Additionally there are also some Protestants and missioner groups spread all over Turkey. In total there are about 300 hundred churches in Turkey that belong to these communities.

Population: 65,666,677 (July 2000 est.) Age structure:

0-14 years: 29% (male 9,722,217; female 9,375,920) 15-64 years: 65% (male 21,671,638; female 20,966,110) 65 years and over: 6% (male 1,811,599; female 2,119,193) (2000 est.) Population growth rate: 1.27% (2000 est.) Birth rate: 18.65 births/1,000 population (2000 est.) Death rate: 5.96 deaths/1,000 population (2000 est.) Net migration rate: 0 migrant(s)/1,000 population (2000 est.) Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1.03 male(s)/female 65 years and over: 0.85 male(s)/female total population: 1.02 male(s)/female (2000 est.) Infant mortality rate: 48.9 deaths/1,000 live births (2000 est.) Life expectancy at birth: total population: 70.97 years male: 68.63 years female: 73.41 years (2000 est.) Total fertility rate: 2.16 children born/woman (2000 est.) Nationality: noun: Turk(s) adjective: Turkish Ethnic groups: Turkish 85-90%, Kurdish 10-15% (note that these figures are not official) Religions: Muslim 99.8% (mostly Sunni), other 0.2% Literacy: definition: age 15 and over can read and write total population: 82.3% male: 91.7% female: 72.4% (1995 est.)

Ethnic & Religious Minorities in Turkey The question of ethnic groups living in Turkey is a highly debated and difficult issue. Figures published in several different references prove this difficulty by varying greatly.

The Oghuz tribes, which used to constitute the majority of the reigning fraction of Turkic people in Anatolia, gained dominance in the region not by their high populations but their superiority in warfare. So, initially Turkic people lived as a minority in many regions that they first captured. Anatolia, which was formerly a part of the Roman empires, was (and still is) especially an ethnically very mixed region. It is, therefore, impossible to speak about a pure Turkish race in the tangled ethnic mix of Anatolia. Moreover, many non-Turkic minorities have accepted the Turkish as their national identity and Turkish language as their native language in the past centuries. In Turkey, it is not surprising to notice blond and blue-eyed individuals within the dominant black-haired, Mediterraneanlooking mass. In this context, the genuinely Turkic people are individuals named as Central Asian Turks , most of whom have possibly come to the region by Mongol invasion long after the initial Oghuz tribes conquered and melted in the local population. Proving the difficulty of classifying ethnicities living in Turkey, there are as many classifications as the number of scientific attempts to make these classifications. Turkey is not a unique example for that and many European countries bear a great ethnic diversity. So, the immense diversity observed in the published figures for the percentages of Turkish people living in Turkey (ranging from 80 to 97%) totally depends on the method used to classify the ethnicities. Complicating the matter even more is the fact that the last official and country-wide classification of ethnical identities of Turkey was performed in 1965 and many of the figures published after that time are very loose estimates. It is necessary to take into account all these difficulties and be cautious while evaluating the ethnic groups. A possible list of ethnic groups living in Turkey could be as follows (based on the classification of P.A. Andrews , however this book is more like a review and depends on other people's publications).

Recent Trends in Situation of Minorities Modern Turkey was founded by Kemal Ataturk as a secular and thus non-religious state, without a state religion, nor discrimination of ethnic or religious minorities. Nevertheless there are many reports from very authoritative sources on persistent yet declining discriminations: Turkish imams get salaries from the state, whereas Turkish non-Islamic clerics are not paid at all; Imams can be trained freely at the numerous religious schools troughout the country; minority religions cannot re-open schools for training of their local clerics due to legislation and international treaties dating back to the end of Turkish war of inderpendence; The Turkish state sends out paid imams, working under authority from the Ministry of Religious Affairs (Diyanet) to other EU countries on demand from local populations;

The genocide of Armenians, Greeks, Syrians, and Assyrians during the 1915-1918 period and after is massively denied; (Turkish point is that as a period of civil war it should be left to historians to review.) Turkey has only recently recognised Kurdish as a minority language together with several other smaller ethnic group languages. However only a few private schools teaching Kurdish have recently opened; Kurdish language TV broadcasts are still limited to a few hours a week on government-owned stations while the private national channels show no interest; Non-Muslim minority numbers are said to be falling rapidly, mainly as a result of aging, (to Israel, Greece and United States) and an overall Islamic influence on society fueled by bordering countries such as Iran.

Refugees and Asylum-seekers According to figures provided by Ankara office of the Turkey, as of 2005 total of 32,832 people are recorded as having made a valid asylum application in Turkey since 1998. As of 2005, 3900 Iranians and 2200 Iraqis, 400 Somalians and 300 Afghans are still in the country, while an additional 1400 Chechens, who are in a "refugee-like situation", are deemed of concern. . These refugees are spread out to satellite cities with notable populations. Country specific groupings include Somalis in Konya, Iranis in Kayseri and Konya, Isparta, and Van, Iraqis in Istanbul, Corum, Amasaya, Sivas and Afghans in Van, and Agri. These numbers greatly increased in the following years especially in regards to Afghans and Iraqis. As of January 2010, 25, 580 refugees and asylum seekers remain in the country. Of these, 5090 Iranians, 8940 Iraqis, 3850 Afghan and 2700 "other" (including Somalians, Sri Lankans, Pakistanis, Chinese, Uzbeks, Palestinians and others) are still in the country. With the number expected to rise to 8710 Iranians, 9560 Afghans, 7860 other while the Iraqis are expected to decrease to 7890 by December 2011. Notable here is that Afghans are expected to make up the largest refugee population in Turkey in the near future. UNHCR has four offices in Turkey; namely Ankara, stanbul, Van and Silopi. The Van office up until 2009 handled all Applicants which enter through the Eastern border, which generally included all Iranians and Afghans who entered illegally. In 1923 more than half a million ethnic Turks arrived from Greece as part of the population exchange between Greece and Turkey. After 1925, Turkey continued to accept Turkic speaking Muslims as immigrants and did not discourage the emigration of members of non-Turkic minorities. More than 90 percent of all immigrants arrived from the Balkan countries. Between 1935 and 1940, for example, approximately 124,000 Bulgarians and Romanians of Turkish origin immigrated to Turkey, and between 1954 and 1956 about 35,000 Muslim Slavs immigrated from Yugoslavia. In the fifty-five-year period ending in 1980, Turkey admitted approximately 1.3 million immigrants; 36 percent came from Bulgaria, 25 percent from Greece, 22.1 percent from Yugoslavia, and 8.9 percent from Romania. These Balkan immigrants, as well as smaller numbers of Turkic immigrants from Cyprus and the Soviet Union, were granted full citizenship

upon their arrival in Turkey. The immigrants were settled primarily in the Marmara and Aegean regions (78 percent) and in central Anatolia (11.7 percent). The most recent immigration influx was that of Bulgarian Turks and Bosnian Muslims. In 1989 an estimated 320,000 Bulgarian Turks fled to Turkey to escape a campaign . Following the collapse of Bulgaria's communist government that same year, the number of Bulgarian Turks seeking refuge in Turkey declined to under 1,000 per month. In fact, the number of Bulgarian Turks who voluntarily repatriated -125,000- exceeded new arrivals. By March 1994, a total of 245,000 Bulgarian Turks had been granted Turkish citizenship. However, Turkey no longer regards Bulgarian Turks as refugees. Beginning in 1994, new entrants to Turkey have been detained and deported. As of December 31, 1994, an estimated 20,000 Bosnians were living in Turkey, mostly in the Istanbul area. About 2,600 were living in camps; the rest were dispersed in private residences. In 1994 the government claimed that as many as 2 million Iranians were living in Turkey, a figure that most international organizations consider to be grossly exaggerated. Turkey is one of the few countries that Iranians may enter without first obtaining a visa; authorities believe that the relative ease of travel from Iran to Turkey encourages many Iranians to visit Turkey as tourists, or to use Turkey as a way station to obtain visas for the countries of Europe and North America. Consequently, as many as 2 million Iranians actually may transit Turkey -including multiple reentries for many individuals- in a given year. Specialized agencies of the European Union and the United Nations that deal with issues of migrants and refugees believe a more realistic figure of the number of Iranians who live in Turkey, and do not have a residence in Iran or elsewhere, is closer to 50,000. Despite a negative public opinion in Armenia, by 2010, there were between 22,000 and 25,000 Armenian citizens living illegally in Istanbul alone, according to Turkish officials.

Family Life and Structure in Turkey:


Turkey has a young age structure: 10 percent of the population is under five years of age and 32 percent below the age of fifteen. The percentage of the population sixty-five and over, however, constitutes only 6 percent of the total. Life expectancy is sixty-six years for men and

seventy-one years for women. The literacy rate in 1998 was 94 percent for men, and 74 percent for women, but few adults have progressed beyond primary school.

Households; Households in Turkey hold an average of 4.3 persons. In urban areas, this figure drops to an average of four persons; in rural areas, it rises to 4.9. Only 5 percent of Turkish households are single-person households, while two in every five households have five or more members Today, about 70 percent of Turkish households are nuclear, with at least one child and both parents, and 20 percent of households are extended families, married couple living with other kin, mostly the parent(s) or other relatives of the husband. Even when a household is classified as nuclear, most often close extended family members will be living in very nearby. About 5 percent of households can be defined as dispersed families, in which single parents or some kinfolk living together. Polygamous households are statistically negligible, but remain despite their illegality.

Marriage; Since the enactment of the republic's 1926 Civil Code, municipal authorities perform marriages in a secular ceremony. Marriages carried out only by religious authorities are considered legally invalid, so people who want to be united in a religious marriage must do so after their official service. Nevertheless, despite this clear requirement, it is estimated that religious marriages (those not accompanied by civil ceremonies) often take place, especially in the eastern and southeastern parts of Anatolia. Therefore, the number of marriages appears lower than it actually is because religious marriages are not included in official statistics. Even taking only the official statistics into account, however, marriage is almost universal in Turkey. By the time women have reached their early thirties, 93 percent are or have been married, and by the end of their reproductive years, only 2 percent of women have never married. The 1998 Turkish Demographic and Health Survey found 15 percent of women aged fifteen to nineteen to be married/divorce rates are very low. The crude divorce rate of Turkey is less than one per thousand per year, quite low when compared to international divorce rates, and much lower than those of Europe. In 1999, the crude divorce rate was 0.49 per thousand. The diversity of marriage ceremonies and customs reflect the regional, urban, rural, ethnic, and socioeconomic differences within the country. In rural areas (35%) and small towns (30%), the girl's family receives a dowry from the groom's family. Newcomers to metropolitan areas (25%) are not always able to give a dowry to the bride's family. Among the established population in metropolitan areas (10%), many couples marry later, after they complete their education. Parents give their children substantial presents and may assist them financially, at least in early married life. There are many colorful varieties of weddings, but most couples marry with the bride wearing a white wedding dress, and the groom a dark suit. Fertility; Turkish families greatly value children, and the desire to have children is universal. Traditionally, families prefer boys over girls. Women at the start of the twenty-first century gave birth to an average of 2.6 children. Childbearing occurs often between the ages of fifteen and nineteen, with the highest fertility rate among women between twenty and twenty-four. There

are, however, wide variations in fertility levels among regions, with the highest rate in the east (4.2 children per woman) and lowest in the west (2.0 children). Women living in the east marry nearly two years earlier than those living in the west. Fertility also varies widely with urban and rural residence, with women living in rural areas having an average of almost one child more than those living in urban areas. Education levels affect fertility levels, with those lacking a primary education having an average of almost one child more than women who have primary education, and 2.2 children more than those with at least a secondary-level education Overall, when asked how many children they would choose to have if they could live their lives over, women gave an average ideal family size of 2.5 children, which is very close to actual fertility rates. Maternal and child health; For many years Turkey has been troubled by infant and child mortality rates that are higher than might be expected, given the economic and demographic figures of the country and other development criteria. The infant mortality rate (a reflection of overall child health in a society) is about forty per thousand, and among children under five, the mortality rate was about forth-eight per thousand in the late 1990s. Infant and child mortality rates declined in the past decade. However, the infant mortality rate in the rural areas is about 1.6 times higher than in urban areas. Infant mortality rates are lower than the national average in the western and southern regions, close to the national average in the central and northern regions, and nearly 1.5 times higher than the national average in the eastern region. Among other factors, children's chances of survival are closely related to the parent's levels of education Medical care is another important factor in the reduction of mortality rates, which drop significantly if the mother has received both antenatal and delivery care from health professionals. If she has received neither, under-five mortality can be as high as 116 per thousand and infant mortality as high as 95 per thousand. About three-fourths of births now occur in health facilities, although this figure varies from around 44 percent in the east to 87 percent in the west. About 80 percent of all births are assisted by either a doctor or a qualified midwife-nurse. Infants born less than two years after a sibling have a considerably higher chance of dying. For these children, mortality risks are 2.8 times higher than for children born after an interval of four years or more. Almost all babies are breastfed. The median duration of breastfeeding is twelve months. Most children are also given supplementary foods and liquids at an early age, which medical authorities consider not only unnecessary, but a potential source of infection. Twenty percent of children under age five are short for their age; this is more prevalent in rural areas, in the east, and among children of uneducated mothers.

Population
Date Dec. 31, 2007 Population 70,586,256 %

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Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Registered Births

71,517,100 72,561,312 73,722,988 74,724,269

+1.32% +1.46% +1.60% +1.36%

Birth statistics of Turkey have been started to get from The Central Population Administrative System (MERNIS) data base after MERNIS had on-line application in 2001. Birth statistics are updated continually because MERNIS has dynamic structure. In 2010 Turkey had a crude birth rate of 17.2 per 1000, in 2011 16.7, down from 20.3 in 2001. The total fertility rate (TFR) in 2010 was 2.05 children per woman, in 2011 2.02. Population (01.01.) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Religion There are no statistics of people's religious beliefs nor is it asked in the census. According to the government, 99.8% of the Turkish population is Muslim, mostly Sunni, some 10 to 15 million are Alevis. The remaining 0.2% is other - mostly Christians and Jews. The Poll 2005 reported that in a poll 96% of Turkish citizens answered that "they believe there is a God", while 1% responded that "they do not believe there is any sort of spirit, God, or life force". survey, 53% of Turkey's Muslims said that "religion is very important in their lives". Based on the Gallup Poll 2006-08, Turkey was defined as More religious, in which over 63 percent of people believe 70 586 256 71 517 100 72 561 312 73 722 988 Live births 1 323 195 1 229 417 1 198 763 1 222 242 1 243 513 1 254 157 1 287 784 1 292 839 1 261 299 1 253 309 1 237 172 Deaths 175 137 175 434 184 330 187 086 197 520 210 146 212 731 215 562 368 390 365 190 Crude Total birth rate fertility (per 1000) rate (TFR) 20.3 2.37 18.6 2.17 17.9 2.09 18.0 2.11 18.1 2.12 18.1 2.12 18.3 2.16 18.2 2.15 17.5 2.08 17.2 2.05 16.7 2.02

religion is important 62% of women wear the headscarf or hijab in Turkey. 33% of male Muslim citizens regularly attend Friday prayers. The word Turk or Turkish also has a wider meaning in a historical context because, at times, especially in the past, it has been used to refer to all Muslim inhabitants of the Ottoman Empire irrespective of their ethnicity. The question of etnicity in modern Turkey is a highly debated and difficult issue. Figures published in several different sources prove this difficulty by varying greatly. It is necessary to take into account all these difficulties and be cautious while evaluating the ethnic groups. A possible list of ethnic groups living in Turkey could be as follows: Turks Although numerous modern genetic studies have indicated that the historical Anatolian groups are the primary source of the present-day Turkish population that first lived in a Turkish people region extending from Central to Siberia and were palpable after the 6th Century BC.Seventh century Chinese sources preserve the origins of the Turks stating that they were a branch and living near the "West Sea", perhaps the Caspian sia. Modern sources tends to indicate that the Turks' ancestors lived within the state of the Hsiung-nu in the Transbaikal area and that they later, during the fifth century, migrated to the southern Altay. The word Trk was used only referring to Anatolian villagers back in the 19th century. The Ottoman elite identified themselves as Ottomans, not usually as Turks In the late 19th century, as European ideas of nationalism were adopted by the Ottoman elite, and as it became clear that the Turkish-speakers of Anatolia were the most loyal supporters of Ottoman rule, the term Trk took on a much more positive connotation. During Ottoman times, the millet system defined communities on a religious basis, and a residue of this remains in that Turkish villagers will commonly consider as Turks only those who profess the Sunni faith, and will consider Turkishspeaking Jews, Christians, or even Alevis to be non-Turks. On the other hand, Kurdish-speaking or Arabic-speaking Sunnis of eastern Anatolia are sometimes considered to be Turks. The imprecision of the appellation Trk can also be seen with other ethnic names, such as Krt (Kurd), which is often applied by western Anatolians to anyone east of Adana, even those who speak only Turkish. Thus, the category Trk, like other ethnic categories popularly used in Turkey, does not have a uniform usage. In recent years, centrist Turkish politicians have attempted to redefine this category in a more multi-cultural way, emphasizing that a Trk is anyone who is a citizen of the Republic of Turkey. Ethnic Turks are the majority in Turkey, numbering 55.5 to 60 million. Kurds The Kurdish identity remains the strongest of the many minorities in modern Turkey. This is perhaps due to the mountainous terrain of the south-east of the country, where they predominate and represent a majority. They inhabit all major towns and cities across Turkey, however. No accurate up-to-date figures are available for the Kurdish population, because the Turkish government has outlawed ethnic or racial censuses. An estimate by the CIA Workbook place their proportion of the population at approximately 18%. Another estimate, according to , an ethnic Turk, in his book The Environment of Insecurity in Turkey and the Emigration of Turkish

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Kurds to Germany, based on the 1990 Turkish Census and 1993 Turkish Demographic Health Survey, is 17.8%. Other estimates include 15.7% of the population according to the newspaper Milliyet, and 23% by Kurdologist David McDowall The Minority Rights Group report of 1985 (by Martin Short and Anthony McDermott) gave an estimate of 15% Kurds in the population of Turkey in 1980, i.e. 8,455,000 out of 44,500,000, with the preceding comment 'Nothing, apart from the actual 'borders' of Kurdistan, generates as much heat in the Kurdish question as the estimate of the Kurdish population. Kurdish nationalists are tempted to exaggerate it, and governments of the region to understate it. In Turkey only those Kurds who do not speak Turkish are officially counted for census purposes as Kurds, yielding a very low figure. Consequently, there are no reliable data on their total numbers. In 1995 estimates of the number of Kurds in Turkey is about 8.5 million out of 61.2 million, which means 13%. Kurdish national identity is far from being limited to the Kurmanji language community, as many Kurds whose parents migrated towards Istanbul or other large non-Kurdish cities mostly speak Turkish, which is one of the languages used by the Kurdish nationalist publications.

Arabs There are an estimated 800,000-1 million Arabs living near the border with Syria, particularly in the province of Hatay.

Azerbaijanis According to some sources, there are about 800,000; however, this figure may differ substantially from the real one. Up to 300,000 of Azeris who reside in Turkey are citizens of Azerbaijanis. They currently are the largest ethnic group in the city of Idr and second largest ethnic group in Kars.

Chechens Towards the end of the Russian war (17631864) many Chencesed fled their homelands in the caucasus and settled in the Ottoman Empire. Circassians Towards the end of the Russian (17631864) many Circassians fled their homelands in the Caucasus and settled in the Ottoman Empire. Georgians There are approximately 1 million people of Georgian ancestry in Turkey according to the newspaper Milliyet.

Laz Most Laz today live in Turkey but the Laz minority group has no official status in Turkey. Their number today is estimated to be around 250,000 and 500000. Only a minority are bilingual in Turkish and their native Laz language which belongs to the South group. The number of the Laz speakers is decreasing, and is now limited chiefly to the Rize and Artvin areas. The historical term Lazistan -formerly referring to a narrow tract of land along the Black sea inhabited by the Laz as well as by several other ethnic groups- has been banned from official use and replaced with Dou Karadeniz. The Muslim population of Russia near the war zones was subjected to ethnic cleansing; many Lazes living in Batum fled to the Ottoman Empire, settling along the southern Black Sea coast to the east of Samsun.

Economy of Turkey
The economy of Turkey is defined as an emerging market economy by the IMF and is largely developed, making Turkey one of the world's newly industrialized countries. The country is among the world's leading producers of agricultural products; textiles; motor vehicles, ships and other transportation equipment; construction materials; consumer electronics and home appliances. In recent years, Turkey had a rapidly growing private sector, yet the state still plays a major role in industry, banking, transport, and communications.

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Macro-economic trends Turkey has the world's 15th largest GDP-PPP and 17th largest Nominal GDP. The country is a founding member of the OECD (1961) and the G-20 major economies (1999). Since December 31, 1995, Turkey is also a part of the EU Customs Union. The CIA classifies Turkey as a developed country. Turkey is often classified as a newly industrialized country by economists and political scientists; while Merrill Lynch, the World Bank and The Economist magazine describe Turkey as an emerging market economy. The World Bank classifies Turkey as an upper-middle income country in terms of the country's per capita GDP in 2007. Mean graduate pay was $10.02 per manhour in 2010. According to a survey by Forbes magazine, Istanbul, Turkey's financial capital, had a total of 28 billionaires as of March 2010 (down from 34 in 2008), ranking 4th in the world behind New York City (60 billionaires), Moscow (50 billionaires), and London (32 billionaires). In 2009, the Turkish Government introduced various economic stimulus measures to reduce the impact of the 20072012 global financial crisis such as temporary tax cuts on automobiles, home appliances and housing. As a result, the production of durable consumer goods increased by 7.2%, despite a decrease in automotive production. The Turkish Stock Market and credit rating agencies have responded positively. According to The Economist, share prices in Turkey nearly doubled over the course of 2009. On 8 January 2010, International credit rating agency Moody's upgraded Turkey's rating with a notch. In 2012, Fitch upgraded Turkey's credit rating to investment grade (long-term foreign currency Issuer Default Rating (IDR) was upgraded to BBB- (from BB+) and long-term local currency IDR was upgraded to BBB (from BB+)) after an 18 year gap.

Main Economic Sectors


Agricultural sector Atatrk Dam is the largest of the 22 dams in the Southeastern Anatolia Project. The program includes 22 dams, 19 hydraulic power plants, and the irrigation of 1.82 million hectares of land. The total cost of the project is estimated at $32 billion. The total installed capacity of power

plants is 7476 MW and projected annual energy production reaches 27 TWh. As of March 2007, Turkey is the world's largest producer of hazelnut, cherry, fig, apricot, quince and pomegranate; the second largest producer of watermelon, cucumber and chickpea; the third largest producer of tomato, eggplant, green pepper, lentil and pistachio; the fourth largest producer of onion and olive; the fifth largest producer of sugar beet; the sixth largest producer of tobacco, tea and apple; the seventh largest producer of cotton and barley; the eighth largest producer of almond; the ninth largest producer of wheat, rye and grapefruit, and the tenth largest producer of lemon. Turkey has been self-sufficient in food production since the 1980s. In the year 1989, the total production of wheat was 16.2 million tonnes, and barley 3.44 million tonnes. The agricultural output has been growing at a respectable rate. However, since the 1980s, agriculture has been in a state of decline in terms of its share in the total economy. The country's large agricultural sector accounted for 29.5% of the employment in 2009. Historically, Turkey's farmers have been fairly fragmented. According to the 1990 Census, "85% of agricultural holdings were under 10 hectares and 57% of these were fragmented into four or more non-contiguous plots." Many old agricultural attitudes remain widespread, but these traditions are expected to change with the EU accession process. Turkey is dismantling the incentive system. Fertilizer and pesticide subsidies have been curtailed and remaining price supports have been gradually converted to floor prices. The government has also initiated many planned projects, such as the Southeastern Anatolia Project (G.A.P project). The program includes 22 dams, 19 hydraulic power plants, and the irrigation of 1.82 million hectares of land. The total cost of the project is estimated at $32 billion. The total installed capacity of power plants is 7476 MW and projected annual energy production reaches 27 billion kWh. The physical realization of G.A.P. was 72.6% as of 2010. The livestock industry, compared to the initial years of the Republic, showed little improvement in productivity, and the later years of the decade saw stagnation. However, livestock products, including meat, milk, wool, and eggs, contributed to more than of the value of agricultural output. Fishing is another important part of the economy; in 2005 Turkish fisheries harvested 545,673 tons of fish and aquaculture.

Transport As of 2009, there were 102 airports (90 with paved runways and 12 with unpaved runways) in Turkey, including the eight international airports in Istanbul, Ankara, zmir, Trabzon, Dalaman, Milas-Bodrum and Antalya. There were also 21 heliports in the country during the same year. In 2010, there were 102 million airline passengers in Turkey. The number of airline passengers is expected to reach 120 million in 2011. The rail network was 10,991 km in 2008, (22nd in the World) including 2,133 km of electrified track. The Turkish State Railways started building highspeed rail lines in 2003. The first line, which has a length of 533 km from Istanbul (Turkey's largest metropolis) via Eskiehir to Ankara (the capital) is under construction and will reduce the travelling time from 67 hours to 3 hours and 10 minutes. The Ankara-Eskiehir section of the line, which has a length of 245 km and a projected travel time of 65 minutes, is completed. Trials began on April 23, 2007, and revenue earning service began on March 13, 2009. The EskiehirIstanbul section of the line is scheduled to be completed by 2012, and includes the Marmaray tunnel which will enter service in 2013 and establish the first direct railway connection between

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Europe and Anatolia. Second high-speed rail line, which has length of 212 km between Ankara and Konya become operational in 2011. As of 2010, the country had a roadway network of 426,951 km, including 2,080 km of expressways and 16,784 km of divided highways. As of 2010, the Turkish merchant marine included 1199 ships (604 registered at home), ranking 7th in the world. Turkey's coastline has 1,200 km of navigable waterways. In 2008, 7,555 kilometers (4,694 mi) of natural gas pipelines and 3,636 kilometers (2,259 mi) of petroleum pipelines spanned the country's territory.

Tourism Sector Tourism is one of the most dynamic and fastest developing sectors in Turkey. According to travel agencies TUI AG and Thomas Cook, 11 of the 100 best hotels of the world are located in Turkey. In 2005, there were 24,124,501 visitors to the country, who contributed $18.2 billion to Turkey's revenues, with an average expenditure of $679 per tourist. In 2008, the number of visitors rose to 30,929,192, who contributed $21.9 billion to Turkey's revenues. Over the years, Turkey has emerged as a popular tourist destination for many Europeans, competing with Greece, Italy and Spain. Resorts in provinces such as Antalya and Mula (which are located on the Turkish Riviera) have become very popular among tourists.

Natural Resources Minerals; Turkey is the tenth ranked producer of minerals in the world in terms of diversity. Around 60 different minerals are currently produced in Turkey. The richest mineral deposits in the country are boron salts, Turkeys reserves amount to 72% of the world's total. According to the CIA World Factbook, other natural resources include coal, iron ore, copper, chromium, uranium, antimony, mercury, gold, barite, borate, celestine (strontium), emery, feldspar, limestone, magnesite, marble, perlite, pumice, pyrites (sulfur), clay, arable land, hydropower, and geothermal power.

Petroleum and natural gas; Turkey is an oil and natural gas producer, but the level of production by the state-owned TPAO isn't large enough to make the country self-sufficient, which makes Turkey a net importer of both oil and gas. However, the recent discovery of new oil and natural gas fields in the country, particularly off the Black Sea coast of northern Anatolia; as well as in Eastern Thrace, the Gulf of skenderun and in the provinces of the Southeastern Anatolia Region near the borders with Syria and Iraq; will help Turkey to reach a higher degree of self-sufficiency in energy production. The pipeline network in Turkey included 1,738 kilometers (1,080 mi) for crude oil, 2,321 kilometers (1,442 mi) for petroleum products, and 708 kilometers (440 mi) for natural gas in 1999. The Baku-Tbilisi-Ceyhan pipeline, the second longest oil pipeline in the world, was inaugurated on May 10, 2005. The pipeline delivers crude oil from the Caspian Sea basin to the port of Ceyhan on Turkey's Mediterranean coast, from where it is distributed with oil tankers to

the world's markets. The planned Nabucco Pipeline will also pass from Turkey and provide the European Union member states with natural gas from the Caspian Sea basin. The Blue Stream, a major trans-Black Sea gas pipeline, is operational since November 17, 2005, and delivers natural gas from Russia to Turkey. The TabrizAnkara pipeline is a 2,577 kilometers (1,601 mi) long natural gas pipeline, which runs from Tabriz in northwestern Iran to Ankara in Turkey. The pipeline was commissioned on July 26, 2001. In Erzurum, the South Caucasus Pipeline, which was commissioned on May 21, 2006, is linked to the Iran-Turkey pipeline. In the future, these two pipelines will be among the main supply routes for the planned Nabucco Pipeline from Turkey to Europe.

Nuclear Energy; To cover the increasing energy needs of its population and ensure the continued raising of its living standard, Turkey plans to build several nuclear power plants. Following the construction of experimental reactors, proposals to build large scale nuclear power plants were presented as early as in the 1950s by TAEK, but plans were repeatedly canceled even after bids were made by interested manufacturers because of high costs and safety concerns. Turkey has always chosen Candu nuclear reactors because they burn natural uranium which is cheap and available locally and because they can be refueled online. This has caused uneasy feelings among Turkey's neighbors because they are ideal for producing weapons-grade plutonium. Turkey's first nuclear power plants are expected to be built in Mersin's Akkuyu district on the Mediterranean coast; in Sinop's nceburun district on the Black Sea coast; and in Krklareli's neada district on the Black Sea coast.

Geothermal energy; Turkey has the fifth highest direct utilization and capacity of geothermal power in the world.

Energy security; Turkey is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.

Environment; With the establishment of the Turkish Environment Ministry on August 9, 1991 (which later merged with the Ministry of Forestry on May 1, 2003, and became the Ministry of Environment and Forestry) Turkey began to make significant progress addressing some of its most pressing environmental problems. The most dramatic improvements were significant reductions of air pollution in Istanbul and Ankara. The most pressing needs are for water treatment plants, waste water treatment facilities, solid waste management and conservation of biodiversity. And not that Turkey is the most forested country in the Middle East with about 30% of its lands being covered by forests.

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The Turkish Economy in 20052009 The global economic crisis beginning in the second quarter of 2007 affected the Turkish economy mainly through three channels. These channels can be summarized as a contraction in foreign trade, a tightness in the finance and liquidity conditions, and a deterioration in expectations. In addition to foreign demand, the global crisis also negatively affected domestic demand severely. Because EU countries, constituting nearly half of Turkish exports, felt the effects of crisis intensively, exports, and thus domestic production, declined significantly in real terms. Since over 90 percent of total Turkish export is composed of manufacturing goods, it can be seen that the rapid reduction in exports has an important share in high-rate production contraction recorded in industry sector-added value. With the effect of an accelerated increase in the import dependency of domestic production and export in the recent years, contraction in imports became deeper. Decline in prices of crude oil and commodities in international markets also reduced the value of Turkish imports during this crisis period. In 2009, as compared with the previous year, the foreign trade balance fell more than 50 percent, from 53 to 25 billion US dollars and the current account deficit fell to 14.2 billion US dollars from a record high of 42 billion US dollars in 2008. Another channel through which the global economic crisis affected Turkey is the increased pressure on the financing and liquidity conditions in both the domestic and global markets. During the 20022007 period, excessive/abundant global liquidity eased the credit conditions and consequently high growth rates were attained in the entire world.

The Turkish economy, structurally suffering from insufficient domestic savings (savings shortage), reached high growth rates by attracting significant foreign capital as a result of structural reforms, privatization of state economic enterprises (SEEs), macroeconomic and political stability, and fiscal discipline. In addition, the Turkish Lira, as other developing countries currencies, significantly appreciated relative to the US dollar parallel to increases in global asset prices as a result of loose monetary and financial policies in developed countries. These developments further increased the current account deficit by encouraging imports, and the Turkish private sector relied heavily on cheaper foreign debt and other foreign financing resources. Under these conditions, decreases in capital inflows to Turkey as a result of global crisis obstructed the finance of growth. Also in this period, because of the contraction in domestic loans, firms had difficulty in gaining access to financing.

The uncertain environment caused by the crisis, affected negatively the anticipatory expectations of economic units by damaging the confidence in markets, and this situation caused the adjournment of consumption and investment decisions and the significant deceleration of economic activity. As a result of these developments, the GDP growth rate realized as negative 4.7 percent in 2009. Economic contraction both in developed and developing countries, as well as in emerging markets, followed by the global crisis caused further increases in unemployment rates which were already high. The seasonally-adjusted unemployment rate of 10.8 percent in 2005 increased to 13.4 percent in 2008 and declined to 13.0 percent in 2009 as of each year end. Besides the existing structural problems in domestic labor markets, crisis-induced uncertainties hindered new job creation. In order to mitigate the negative effects of crisis on the economy, by taking into consideration the suggestions of private sector agents, some support packages were

put in place to stimulate domestic demand and to fight against the unemployment. With the effect of the support packages, an important deterioration in public finance occurred in 2009. This deterioration, to a large extent, arose from the reduction in tax and social security premium revenues caused by the rapid decline in consumption, imports, and employment.

These developments caused an increase in the ratio of EU-defined general government nominal debt stock-to-GDP, which decreased permanently from 73.7 percent in 2002 after the 2001 economic crisis to 39.5 percent in 2008 and then, due to the aforementioned measures to stimulate the economy after the global crisis, rose to 45.5 percent at the end of 2009. Besides the sharp decline in global demand and reduction in energy and commodity prices in the wake of global crisis, the contraction in domestic demand brought the reduction in inflation and inflationary expectations. This conjuncture established grounds for the Central Bank of the Republic of Turkey (CBRT) to lower policy interest rates rapidly. As a result, short-term market interest rates and government debt securities interest rates declined to their lowest levels.

The effect of global crisis on the Turkish banking system remained very limited. After structural and legal reforms put in effect following the 2001 economic crisis to establish a sound banking system, Turkish banks strengthened their capital bases, and by incorporating active risk measurement and management techniques, the asset quality of the sector steadily improved. Bank credits to the private sector, especially consumer and mortgage credits to households, have increased to 256 billion US dollars from 28 billion in 2001 and 114 billion in 2005. Total net credits account for 38 and 48 percent of the total banking sector assets in 2005 and 2009 respectively. The capital adequacy ratio for the banking system as a whole during the 20052009 period remained at 20 percent on average.

Expectations about the world economy have a critical importance for Turkey when the openness of its economy and the importance of foreign financing resources for the finance of growth are taken into consideration. A rapid recovery in the world economy and capital inflows in the next period will accelerate the recovery period of the Turkish economy from the global crisis.

In summary, the Turkish economy recorded a rapid growth performance until its slowdown started in the second quarter of 2007, accelerated downward from the second half of 2008 when the effects of the global crisis began to be perceived, and then gave way to contraction. While the average annual growth rate of the Turkish economy was 6.9 percent in the 20052007 period, the economy grew by 0.7 percent in 2008 and contracted by 4.7 percent in 2009. Thus, comparison of the performance of HPCs in 20052007 to that in 20082009 will effectively assess the ability of these companies to maintain performance in a period of financial crisis.

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Period 20082009 Results The second test period of 20082009 is a good test period of superior performance by HPCs because it represents a contrasting period of slight growth following a rapid decline in the Turkish market cycle from the 20052007 period. Our expectation was that the HPCs would continue to outperform the ISE ordinary companies in this period, given that the overall market conditions in Turkey have deteriorated. The following observations may be made:

1) For this period, the overall industry analysis shows similar results in favor of the HPCs, especially in the asset turnover and profit margin drivers and the growth in revenue, return on assets, return on equity, and cash flow return on total assets measures. Overall, 2 of the 4 drivers and 4 of the 5 measures have differences that are significant at least at the .069 level or better. The only exceptions are the drivers of debt to equity and cash flow yield where the differences are in favor of ordinary companies but not statistically significant at the .05 level. These results indicate that HPCs are maintaining their superior position with regard to performance measures and drivers with almost no variations.

2) HPCs continue to have higher debt to equity ratios and thus higher financial risk but continue to have superior return on equity. They also generate superior cash flow returns. These results strongly support the proposition that HPCs maintain superior performance with regard to asset management and profitability drivers through changing market conditions.

Limitations and Future Research This exploratory study, which we consider part of on-going research in the area of strategy and financial performance measurement, has several limitations, some of which we expect to study in future research. First, we were limited to the small sample size. This was due to our limiting our sample to ISE companies. If we expand our sample size sufficiently to non-public companies, we expect to find similar results to this study. Second, we were not able to expand this study to the industry level, because no industry had enough HPCs to produce significant results. If we expand the sample size, we expect to find similar results at the industry level as well. Future research may compare Turkish HPCs to other developing countries across all performance drivers and measures.

Natural Factors of Turkey


Turkey is situated in Anatolia and the Balkans, bordering the Black Sea, between Bulgaria and Georgia, and bordering the Aegean Sea and the Mediterranean Sea, between Greece and Syria. The geographic coordinates of the country lie at: 3900N 3500E The area of Turkey is 783,562 km2 (302,535 sq mi); land: 770,760 km2 (297,592 sq mi), water:

9,820 km2 (3,792 sq mi). Turkey extends more than 1,600 km (994 mi) from west to east but generally less than 800 km (497 mi) from north to south. Total land area is about 783,562 km2 (302,535 sq mi), of which 756,816 km2 (292,208 sq mi) are in Asia and 23,764 km2 (9,175 sq mi) in Europe (Thrace). Anatolia (Turkish: Anadolu) is a large, roughly rectangular peninsula situated bridge like between Europe and Asia. The Anatolian part of Turkey accounts for 97% of the country's area. It is also known as Asia Minor, Asiatic Turkey or the Anatolian Plateau. The term Anatolia is most frequently used in specific reference to the large, semiarid central plateau, which is rimmed by hills and mountains that in many places limit access to the fertile, densely settled coastal regions. The European portion of Turkey, known as Thrace (Turkish: Trakya), encompasses 3% of the total area but is home to more than 10% of the total population. Istanbul, the largest city of Europe and Turkey, has a population of 11,372,613. Thrace is separated from the Asian portion of Turkey by the Bosporus (Turkish: stanbul Boaz), the Sea of Marmara (Turkish: Marmara Denizi), and the Dardanelles (Turkish: anakkale Boaz). Bridging East and West, Turkey is a vast country with geographical importance. Below is an account of some of the stunning natural beauty and natural factors that continue to draw visitors to Turkey. The varied landscape of Turkey offers investors a wide choice of areas in which to put their money. Turkey is a present-day marvel while remnants of early civilizations with a modern, westward-looking republic. Turkey is known for its unique and very diverse natural features. Turquoise water laps the beaches of the Mediterranean and Aegean coasts as they bask in the hot summer sunshine. While the Black Sea coast is far less explored but wetter and richer in vegetation, at the moment this area is largely devoted to agriculture and is rarely explored by tourists.

Climate The coastal areas of Turkey bordering the Aegean Sea and the Mediterranean Sea have a temperate Mediterranean climate, with hot, dry summers and mild to cool, wet winters. The coastal areas of Turkey bordering the Black Sea have a temperate Oceanic climate with warm, wet summers and cool to cold, wet winters. The Turkish Black Sea coast receives the greatest amount of precipitation and is the only region of Turkey that receives high precipitation throughout the year. The eastern part of that coast averages 2,500 millimeters annually which is

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the highest precipitation in the country. The coastal areas of Turkey bordering the Sea of Marmara (including Istanbul), which connects the Aegean Sea and the Black Sea, have a transitional climate between a temperate Mediterranean climate and a temperate Oceanic climate with warm to hot, moderately dry summers and cool to cold, wet winters. Snow does occur on the coastal areas of the Sea of Marmara and the Black Sea almost every winter, but it usually lies no more than a few days. Snow on the other hand is rare in the coastal areas of the Aegean Sea and very rare in the coastal areas of the Mediterranean Sea. Conditions can be much harsher in the more arid interior. Mountains close to the coast prevent maritime influences from extending inland, giving the central Anatolian plateau of the interior of Turkey a continental climate with sharply contrasting seasons. Winters on the plateau are especially severe. Temperatures of 30 C to 40 C (22 F to 40 F) can occur in eastern Anatolia, and snow may lie on the ground at least 120 days of the year. In the west, winter temperatures average below 1 C (34 F). Summers are hot and dry, with temperatures generally above 30 C (86 F) in the day. Annual precipitation averages about 400 millimetres (15 in), with actual amounts determined by elevation. The driest regions are the Konya plain and the Malatya plain, where annual rainfall frequently is less than 300 millimetres (12 in). May is generally the wettest month, whereas July and August are the driest.[1 Landforms Turkey's terrain is structurally complex. A central massif composed of uplifted blocks and downfolded troughs, covered by recent deposits and giving the appearance of a plateau with rough terrain, is wedged between two folded mountain ranges that converge in the east. True lowland is confined to the Ergene Plain in Thrace, extending along rivers that discharge into the Aegean Sea or the Sea of Marmara, and to a few narrow coastal strips along the Black Sea and Mediterranean Sea coasts.[citation needed] Nearly 85% of the land is at an elevation of at least 450 meters; the average and median altitude of the country is 1,332 and 1,128 meters, respectively. In Asiatic Turkey, flat or gently sloping land is rare and largely confined to the deltas of the Kzl River, the coastal plains of Antalya and Adana, and the valley floors of the Gediz River and the Bykmenderes River, and some interior high plains in Anatolia, mainly around Tuz Gl (Salt Lake) and Konya Ovasi (Konya Basin). Moderately sloping terrain is limited almost entirely outside Thrace to the hills of the Arabian Platform along the border with Syria. More than 80% of the land surface is rough, broken, and mountainous, and therefore is of limited agricultural value (see Agriculture, ch. 3). The terrain's ruggedness is accentuated in the eastern part of the country, where the two mountain ranges converge into a lofty region with a median elevation of more than 1,500 meters, which reaches its highest point along the borders with Armenia, Azerbaijan, and Iran. Turkey's highest peak, Mount Ararat (Ar Da) 5,137 meters high is situated near the point where the boundaries of the four countries meet.

Regions

Black Sea Region; The Black Sea region has a steep, rocky coast with rivers that

cascade through the gorges of the coastal ranges. A few larger rivers, those cutting back through the Pontic Mountains (Dou Karadeniz Dalar), have tributaries that flow in broad, elevated basins. Access inland from the coast is limited to a few narrow valleys because mountain ridges, with elevations of 1,525 to 1,800 meters in the west and 3,000 to 4,000 meters in the east in Kakar Mountains, form an almost unbroken wall separating the coast from the interior. The higher slopes facing northwest tend to be densely forested. Because of these natural conditions, the Black Sea coast historically has been isolated from Anatolia.

Marmara Region; The European portion of Turkey consists mainly of rolling plateau country well suited to agriculture. It receives about 520 millimeters of rainfall annually. Densely populated, this area includes the cities of Istanbul and Edirne. The Bosphorus, which links the Sea of Marmara and the Black Sea, is about twenty-five kilometers long and averages 1.5 kilometers in width but narrows in places to less than 1000 meters. There are two suspension bridges over the Bosphorus, both its Asian and European banks rise steeply from the water and form a succession of cliffs, coves, and nearly landlocked bays. Most of the shores are densely wooded and are marked by numerous small towns and villages. The Dardanelles Strait, which links the Sea of Marmara and the Aegean Sea, is approximately forty kilometers long and increases in width toward the south. Unlike the Bosphorus, the Dardanelles has fewer settlements along its shores. The Saros Bay is located near the Gallipoli peninsula and is famous for its clean beaches. It is a favourite spot among scuba divers for the richness of its underwater fauna and is becoming increasingly popular due to its vicinity to Istanbul. Aegean Region; Located on the western side of Anatolia, the Aegean region has a fertile soil and a typically Mediterranean climate; with mild, wet winters and hot, dry summers. The broad, cultivated valley lowlands contain about half of the country's richest farmlands. The largest city in the Aegean Region of Turkey is zmir, which is also the country's third largest city and a major manufacturing center; as well as its second largest port after Istanbul. Mediterranean Region; Toward the east, the extensive plains around Adana (Cicillian
plains or Turkish: ukurova), Turkey's fifth most populous city, consist largely of reclaimed flood lands. In general, rivers have not cut valleys to the sea in the western part of the region. Historically, movement inland from the western Mediterranean coast was difficult. East of Adana, much of the coastal plain has limestone features such as collapsed caverns and sinkholes. Between Adana and Antalya, the Taurus Mountains rise sharply from the coast to high elevations. Other than Adana, Antalya, and Mersin, the Mediterranean coast has few major cities, although it has numerous farming villages. Central Anatolia Region; Stretching inland from the Aegean coastal plain, the Central Anatolian occupies the area between the two zones of the folded mountains, extending east to the point where the two ranges converge. The plateau-like, semiarid highlands of Anatolia are considered the heartland of the country. The region varies in elevation from 600 to 1,200 meters from west to east. The two largest basins on the plateau are the Konya Ovasi and the basin occupied by the large salt lake, Tuz Gl. Both basins are characterized by inland drainage. Wooded areas are confined to the northwest and northeast of the plateau. Rain-fed

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cultivation is widespread, with wheat being the principal crop. Irrigated agriculture is restricted to the areas surrounding rivers and wherever sufficient underground water is available. Important irrigated crops include barley, corn, cotton, various fruits, grapes, opium poppies, sugar beets, roses, and tobacco. There also is extensive grazing throughout the plateau.

Eastern and Southeastern Anatolia Regions; Eastern Anatolia, where the Pontus and Taurus mountain ranges converge, is rugged country with higher elevations, a more severe climate, and greater precipitation than are found on the Anatolian Plateau. The region is known as the AntiTaurus, and the average elevation of its peaks exceeds 3,000 meters. Mount Ararat, at 5,137 meters the highest point in Turkey, is located in the Anti-Taurus. Many of the Anti-Taurus peaks apparently are recently extinct volcanoes, to judge from extensive lava flows. Turkey's largest lake, Lake Van, is situated in the mountains at an elevation of 1,546 meters. The headwaters of three major rivers arise in the Anti-Taurus: the east-flowing Aras, which pours into the Caspian Sea; the south-flowing Euphrates; and the south-flowing Tigris, which eventually joins the Euphrates in Iraq before emptying into the Persian Gulf. Several small streams that empty into the Black Sea or landlocked Lake Van also originate in these mountains. In addition to its rugged mountains, the area is known for severe winters with heavy snowfalls. The few valleys and plains in these mountains tend to be fertile and to support diverse agriculture. The main basin is the Mus Valley, west of Lake Van. Narrow valleys also lie at the foot of the lofty peaks along river corridors. Southeast Anatolia is south of the Anti-Taurus Mountains. It is a region of rolling hills and a broad plateau surface that extends into Syria. Elevations decrease gradually, from about 800 meters in the north to about 500 meters in the south. Traditionally, wheat and barley were the main crops of the region, but the inauguration of major new irrigation projects in the 1980s has led to greater agricultural diversity and development.

Technology & Development in Turkey

Market Overview The size of the strategically located Turkish IT market is forecast to increase from US$7.9bn in 2012 to US$14.4bn by 2016, making it one of the fastest growing in emerging Europe. A cultural and geographical position as a hub between Europe and the Middle East only accentuates the significance of the country's large market size for IT vendors. Turkish demand for IT is forecast to expand by double digits in 2011, consolidating the recovery in 2010 from the impact of the global economic slowdown. Turkish IT spending is expected to strengthen throughout 2011, buoyed by a recovery in industrial production and domestic lending growth. The IT market will grow alongside other sectors as the government implements its programme of privatisation and reform. The Turkish IT market is projected to achieve a compound annual growth rate (CAGR) of 16% during 2012-2016. Computer penetration should pass 50% by 2016, while small- and medium-sized enterprises (SMEs) also represent a large potential market. In recent years, PC sales have received new momentum as the focus of demand shifts towards the Anatolia region and this is expected to continue as the rate of PC penetration rises. Industry Developments In 2011, a new initiative called FATIH (The Movement To Increase Opportunities in Technology,) was launched. The project is expected to cost up to TKL2.5bn and should reach 570,000 classrooms over the next five years. The focus of the project is networked notebooks, printers, cameras for every classroom, as well as educational content Healthcare should be a significant area of opportunity for IT vendors over the next few years as organisations seek efficiency improvements and better quality services. Government departments have continued to launch tenders, including a data warehouse for the Social Security Institute and an upgrade of the statistical system for the Ministry of Labour and Social Security. Competitive Landscape Vendors and services providers believe cloud computing is a promising way to target the huge SME segment. In 2011, leading Turkish internet service provider Koc.net launched an online CRM service for SMEs in partnership with Surado. Meanwhile, Turkcell has launched an internet-based platform for SMEs, which provides customer relationship management (CRM) and enterprise resource planning (ERP) applications, as well as basics such as email and website services. Business software leader Oracle reported strong results for the Turkish market in H111. The company reported a number of success stories with local clients such as Turkcell, Aegon, Tekstilbank, Yapi Kredi Bankasi, Petrol Ofisi, Enka and Hisar Scholl Kemerkoy. Hardware Turkey's computer hardware sales are projected at US$5.7bn in 2012 and are forecast to reach around US$10.6bn in 2016. The market is forecast to remain in positive growth territory in 2012, with revenue forecast to grow at a 17% CAGR in 2012-2016. The notebook segment was the main growth driver in 2010, while desktops sales declined as companies remained cautious about IT spending. The market fundamentals remain promising, with computer penetration low at about 10%.

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Until a few years ago, demand for computers was mainly confined to large cities such as Istanbul, Izmir and Ankara. Now, the fastest growth in sales is coming from Anatolia. Demand for laptops is expected to be the strongest growth area over our forecast period but desktops remain popular with businesses. Software The software market in Turkey is projected at US$933mn in 2012 and is forecast to reach US$1.5bn in 2016, with a CAGR of 13%. However, much will depend on the success in bringing down illegal software use, which at 65% is nearly twice the global average. The global economic crisis may have provided a boost to hosted software and outsourcing solutions, which have grown in popularity. There is considerable potential for software market growth but lack of access to credit limits Turkish SMEs' willingness to spend on applications and solutions that often must be financed from operational budgets. IT Services Turkish spending on all categories of IT services is projected at US$1.3bn in 2012. Banks and telcos were among organisations spending on new IT platforms in H111. An increased business focus on internal savings as a result of the economic situation could ultimately drive higher spending on external IT suppliers such as systems integrators and managed services providers. The Turkish IT services market is expected to grow at a 14% CAGR over 2012-2016. While support remains the largest services category, other groups, including outsourcing on non-core functions and training services, are growing particularly fast. A pick-up in large projects in key verticals such as telecoms, manufacturing and finance should provide new corporate sector opportunities in outsourcing, systems integration and application customisation. E-Readiness Data indicate that Turkey's e-commerce transactions level doubled in 2007 to 54.1mn transactions, up from 21.7mn the previous year. Although other operators in Turkey are providing ADSL services, they are reliant on the incumbent Trk Telekom's wholesale ADSL product. Wholesale connections are included in its reported total. The Telecommunications Authority is keen to foster the growth of alternative broadband operators by allowing them to co-locate on Trk Telekom's network, in addition to reselling Trk Telekom's wholesale ADSL product. Competing against Trk Telekom remains difficult, given that it owns the bulk of Turkey's fixed-line network infrastructure and is determined to compete aggressively on price. In 2007, the OECD called for more initiatives to increase public use of ICT, with research from Eurostat showing that Turkey is among the countries in which internet access is low. The research found that only 39% of Turks had computers at home and that Turkey was below the EU average in terms of computers per household and internet access.

Turkey lags behind its EU neighbours on many indicators but not e-government, where much progress has been made. In 2005, the Information Society Department, responsible for the overall coordination of ICT projects, was established within the State Planning Organisation. To increase participation and the level of success, an advisory board with 41 members has also been established. This consulting body gathers representatives from public institutions, nongovernmental organisations and universities. Risk/Reward Ratings; Turkey's score was 49.8 out of 100.0, unchanged from the previous quarter, with low Risks ratingsrestraining potentially high Rewards. BMI expects business and consumer IT spending to hold uprelatively well, although continued price erosion in the PC market will place pressure on margins. Despiteits static score, Turkey moved into tenth place in our latest RRR table and the country is in a favourableposition to continue to be a regional IT market outperformer. Key Trends & Developments The Fatih technology for schools programme will provide a significant boost to PC sales overthe next few years, with a goal to provide tablets to 15mn students with tablet PCs, as well asother devices such as digital cameras. The project is expected to cost up to US$7.5mn andshould reach 570,000 classrooms over the next five years. The focus of the project is networkedcomputers, printers and cameras for every classroom, as well as educational content. PC sales have received new momentum as the focus of demand shifts towards the Anatoliaregion and this is expected to continue as the rate of PC penetration rises. The government hasset itself a target of increasing computer ownership to 51% and internet usage to 48%. Whilethese targets may be ambitious, the computer penetration rate should increase to around 73% by2016. The household sector, as well as corporate spending, will drive IT market growth. The government will continue to advance its ambitious plan to build an information society. In2012, Science, the Industry and Technology Minister, Nihat Ergun, signed an agreement thatoffered major government incentives to domestic companies in the sector. As a result of theagreement, the IT sector will become one of the two industries that will receive the mostgovernment subsidies over the next ten years, along with the automotive industry.

Culture & Marketing in Turkey


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Culture
Culture is a wide topic its elements include everything of a nations day to day living. Major elements of culture are as follows: Language (Spoken/Written Language); Same language can provide difference meaning in different culture. One particular language can have several regional formats. For example, in Bangladesh & West Bengal we are speaking Bangla but it has a clear distinction. Not only that, inside Bangladesh the people of Chittagong, Sylhet and North Bangle all speaks Bangla but in different tone and with different special words. A marketer must have to know the local language and tone to do marketing well. Otherwise he will fail to communicate his product or service to the local communities. Translator can be used in this purpose but its costly and may not be such effective. Nonverbal communication; Not only verbally but sometimes people used nonverbal body language or other means of communications like, Proxemics, Postures, Orientations, Oculesics Chronemics Haptics Kinesics Paralinguistic Appearances, Olfactions. One particular body sign may carry different opposite meaning to the people of different language. For example we can say that, show thumb to some body means he is neglecting any effect or actions of the person to home it is shown on the person who show in Bangladeshi rural culture. Showing thumb is a negative sign according to Bangladeshi rural culture. But in the Western society it means all right. A marketer must have to know the local meaning of body language or postures and gestures that being used by the general people of that community. Otherwise serious mistake can be done and all market promotions may be worthless.

Low versus High Context Cultures; Low-Context cultures: What is said is precisely what is meant High-Context cultures: the context of the message -the message source, his or her standing in society or in the negotiating group, level of expertise, tone of voice, and body language- are all meaningful. Religion and Its Impact on Marketing Practice; Religion is another powerful element of culture having most powerful impact on consumer behavior which controls buying process & product choice resultant on major impact on marketing as well as international marketing.

For example we can say that beef & pork both is protein provider. But consumers are not same only for religious effect. Muslim can not select pork in his menu & a Hindu can not select beef in his menu. A marketer must have to think about the religion on the local community before offering a product to them. View point of different religions as follows: i. Protestant Religion stresses hard work and frugality ii. Judaism stresses education and development

iii. Islam focus on rules for social interaction iv. Hinduism encourages family orientation and dictates strict dietary constraints v. Buddhism stresses sufferance and avoidance of worldly desires vi. Business days Business day of a community also be selected based on their religious believes. For example most Muslim country celebrate Friday as a holiday because of Jumma prayer on the other hand Christians prefer Sunday as weekly holiday. vii. Gender roles Role of male female in the family, society as well as in the economy also be selected by following their religious instructions. For example according to the Islamic law Men will lead the family women are followers it is well practiced in the Muslim society on the other hand there are some tribal people their religious trends to offer female leadership. Women are family leader as well as wealth holders. In a men leadership society usually male choice is valuable in case of product selection & vice versa. viii. Gift giving Giving gift to anybody is a very responsive action of culture. But choice of selecting gift item also determine by the local peoples practiced religion. Religious impact on human action should not be neglected. Because it plays a vital role in every aspect.

Findings of Cultural Impact on Marketing


Findings It is quite clear that, culture has a direct impact on consumer behavior as well as on their choices, buying behavior and so on. As it is impacting buying process so it has a great impact on international marketing as well. An international marketer must have to think first which product he is offering for whom and their cultural background. Because of different parts of the world possess different cultural behavior, different tests, choices, norms, values and attitudes. One marketer must have to promote them according to their choice and believes. In this case SRC & Ethnocentrism may be two major barriers. So a marketer in international market must be aware of his / her SRC & Ethnocentrism. Every situation must be translated according to local culture. Local culture should be given first priority in case of taking any marketing action by an international marketer. Recommendations

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In international market a marketer must be SRC free and never affected by ethnocentrism. Think according to your view point but you must have to transform it into local cultural heritage. Never make any comments it is right or wrong or mine is the best in international marketing. You just cope with the culture where you are offering your product. Know in-depth of local history and culture and offer them accordingly to have their attention. Whatever your culture think about the fact forget it, you just cope with the local thinking up to the permitted level. That means be French when you are in France.

Cultural Marketing
Culture is the totality of our life style and personality. At a glance is can be said that, culture is that what we are i.e. our way of dressings, specking, eating, thinking, learning, attitude, believes, values, norms etc all included in our culture. International marketing is the marketing activities of a company outside their country of origin. Culture has a great impact on international marketing. A marketer must have to study about the local culture in-depth before offering a product to them. Because of every marketing promotion has done to promote the product i.e. communicating product feature to the customers and influence customers to buy it. To have an effective communication one must send the message according to the receivers culture, customs and learning process. There are some major barriers by which effective communication can be hampered. Self Reference Criterion (SRC) and Ethnocentrism can make the effort worthless. Here we can draw an example how SRC can make all effort worthless. As we know that Disneyland is a name of success in the amusement park business around the globe. But when they have started their journey in France they faced a tremendous problem and fall in billion Dollar loss. In USA, Hong Kong, Singapore, and Japan they earned a great amount of profit. But why they failed in France? Disney management started a study and fined out that self Reference Criteria of American managers make the French people hart. As a result they do not used to be here in Parish Disney Park. Not only in France out of every ten US managers eight have to replace from Saudi Arabia within three month of their joining. It is because they fail to cope with the Saudi culture and customs. It is human nature that, everything want to judge according to self learning process and Cultural measurement. But a single thing can have different meaning in different culture. For example showing thumb carries the signal of all right to the western but it carries a serious negative meaning to the Bengali rural people. For this reason a marketer in international market must have to convert his all thinking into the

culture of the local people. Sometime marketer fails to make this conversion successfully as a result they fail to have local people attention and make huge loss. Customers culture is a very important element in the international marketing. Raising global competition pressure doesnt allow companies to ignore culture codes of target groups. Customers decision making process about buying a new housing is very complicated. Modern consumers preferences are rooted in the mists of the time when our ancestors struggled with nature for their lives; and stay in the field of unconscious. When a modern human buys a home he unconsciously seeks for the same attributes that his ancestors were seeking long time ago. This set of attributes is a culture code for Home. New trends like universality and pragmatism make just temporally changes in consumers brains. Producers of such permanent products as houses must pay attention to permanent values not to trends. The main purpose of our research is to find out unconscious culture codes that influence a customers decision making process about buying a new housing.

There are a variety of cultural issues to consider when marketing in Turkey. Culture can affect what products and services are needed, how to reach a target market and act as a predictor of product success or failure. By examining the cultures of potential markets, companies can be more prepared for what to expect.

Social and Cultural Environment in Turkey The social and cultural environment in Turkey has many important aspects that could affect the potential success of products and services. One of the first things to consider is the business environment. As of 2003, state owned enterprises account for one third of manufacturing (Cavusgil et al, 2003). There was a decline in government owned manufactures to get to that level. Turkey is a member of a variety of international organizations including the United Nations and trades with a variety of countries. Turkey has adopted European Union rules on measurement, quality and tariffs, adapting some to its circumstances. There are some incentives to business including that customs and duties on the import of industrial products have been eliminated (Karadeniz & Gocer, 2007). The middle class in Turkey is growing. The per capita income in 2003 was roughly $3,300 (Cavusgil et al, 2003). There are many individual traits that are part of the Turkish culture. As a society, the Turkish have a respect for rank, education and authority. The boss is the ultimate decision maker. Older people are thought to be wise and are treated with respect. Turkey is also tolerant of various religions. Hospitality and generosity are very important to the Turkish culture. Hospitality should not be refused by anyone doing business in Turkey. Turks are used to handling simultaneous conversations so interruptions in meetings are very common. Business meetings do not require an appointment since business managers are hospitable towards drop-by meetings. Business lunches and dinners are common and reciprocity is important. Business relationships are important to the Turkish. Business partners might be expected to perform favors beyond what might exist in other

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countries business relationships.

Impact of Culture on Marketing Culture can have an impact on what products and services can be successful in different countries. Tastes and likes or dislikes of products can differ from country to country or even by region in side of a country. In is impossible to predict the level of product success, when expanding to another country, without considering cultural implications. There are several different areas of culture to consider that can affect marketing: Aesthetics, wants and needs; Different cultures have preferences in the design and layout of products can vary by culture. It is rare to find a single design that serves a global market. Language and body language; Various cultures can take differing views on body language. A handshake in some countries is appropriate whereas in others a simple verbal greeting is warranted. In some countries it can be offensive to not individually welcome everyone verbally. Some countries are also very sensitive about what language business will be discussed. Religion; This can affect a variety of things from how people are allowed to dress to the food products they eat. Companies have to be sure the products are not offensive and comply with the guidelines of religions. Technology and material culture; Products need to have a distribution method and transportation and infrastructure in countries can vary. Roads or transportation methods can be unreliable in some countries. Infrastructure such as electricity, Internet access, telephone access and running water can be spotty in developing countries. Law and politics; Corruption can be an issue in some countries. Laws, tariffs, import restrictions or other barriers of entry can pose problems in marketing products to some cultures.

Marketing in Turkey By understanding what types of products the consumer wants, local resources can be better utilized (Aydin & Terpstra, 1981). Local resources often offer the key to what will work when marketing a product to a new country. There are several things to consider to successfully market in Turkey. Turkish is the predominant language, but there are several dialects. In different regions of Turkey, German and English are spoken. For business at the local level it will be important to communicate in Turkish (Cavusgil et al , 2003). It will be important to have someone on the marketing and business team that speaks Turkish fluently in order to establish a local presence with a product. Verbal communication is more dominant than written expression in business in Turkey (Cavusgil et al, 2003). A verbal agreement and handshake can seal a deal in Turkey.

A variety of different market entry methods exist. Cavisgil et al (2003) recommends that companies consider a joint venture strategy when entering the Turkey market. In this way, there will be local knowledgeable people that understand the market. Distribution in Turkey usually occurs through a dealer network (Cavusgil et al, 2003). Urban areas usually make up the majority of sales (Cavusgil et al,2003). The ideal method of marketing a product in Turkey would be to establish a partnership with an existing Turkish company. The partner company would need an existing distribution method that could be utilized for the new product. The partner company would also establish, foster and maintain relationships on the local level. The partner could also provide cultural knowledge and use their sensitivity of Turkish culture to help eliminate potential cultural, religious, or governmental problems.

Conclusion The impact of culture on marketing is something is very important. Multinational companies need to be aware that the culture in different countries can affect the needs and wants of products and services. It can be very difficult to transfer products and services between countries or even regions within a country because of differing cultural customs and traditions. Often a partnership with a company that already operates in a country is the best way to market a new product to that country. The expertise of the partner company can be invaluable in overcoming cultural and governmental barriers.

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Sources http://en.wikipedia.org/wiki/Demographics_of_Turkey http://www.ekodialog.com/Articles/turkey_economy_demographic_profile.htm l http://www.marketresearchworld.net/index.php? option=com_content&task=view&id=4566&Itemid=77 http://english.istanbul.com/about-turkey/demographics http://en.wikipedia.org/wiki/Economy_of_Turkey http://en.wikipedia.org/wiki/Geography_of_Turkey http://www.propertyshowrooms.com/turkey/property/investment/turkeyinvestment-natural-factors.asp http://www.nationsencyclopedia.com/Asia-and-Oceania/Turkey-SCIENCE-ANDTECHNOLOGY.html http://bkstrategic.com/marketing-portfolio/turkey-cultural-analysis/ http://www.drpatrickcarter.com/blog/2010/09/marketing-in-turkey/ http://www.startupoverseas.co.uk/starting-a-business-in-turkey/marketing-abusiness.html http://www.euromonitor.com/turkey

Links are up to date on 14.01.2013

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