THE EFFECTS OF BANKS’ INTERNAL MARKETING AND MARKET ORIENTATION APPROACHES ON PERFORMANCE

3 ABSTRACT Information technologies are developing rapidly nowadays and globalization concept which shows up in parellel to IT has started to threaten the existence of firms by making competitive environment more intensive. Counter to this threat, businesses are trying to provide an advantage against their competitors by developing various of strategies. Internal marketing and market oriented approach are among the significant strategies which are developed within this scope. In the study, it is aimed to determine the effects of internal marketing practices and market oriented approach on performance in banks. Besides, it is examined whether internal marketing practices have an effect on market oriented approach or not. As a result of the study, it is determined that internal marketing practices and market oriented approach of banks affect their performance positively. Moreover, it is found that internal marketing practices affect market oriented approach


INTRODUCTION
Information technologies (IT) developing rapidly nowadays and the globalization concept which shows up in parallel to IT has started to threaten the existence of firms by making the competitive environment more intensive. Since IT and globalization concepts make the market as the only world market, they force firms to reexamine the market, competitors, and customers within an international perspective. Firms that want to resolve this difficulty have achieved to develop various strategies and practices.
In this context, customer-oriented approach which is one of the most requirements of modern marketing perspective has been shown among significant strategies by firms. However, it has been seen that some firms perceive customer-oriented approach incompetently and only focus on external customers while ignoring internal customers. This circumstance which is evaluated as an important marketing myopia might originate substantial results especially in terms of service firms. Hence, firms that aim to achieve sustainability within today's intense competition environment ought to adopt market-oriented approach and develop internal customer-oriented policies. It's known that these two phenomena affect each other considerably and have an effect on business performance.
Market orientation concept had been mentioned in the literature by year of 1980 (Karamustafa, Güllü, Acar and Ulama, 2010: 65) was tried to express with concepts such as customer orientation, market-oriented culture, and marketing-orientation (Ayyıldız Ünlü, 2009: 1246). Nonetheless, Shapiro (1988) and many theoreticians indicated that the best label stated the concept was customer orientation (Kohli and Jaworski, 1990: 3). Within this scope, they made three proposals to support the concept. In the first proposal, it was stated that marketing-orientation was a limited concept because it had been perceived as an operation belonging to a specific department (Shapiro, 1988: 122-123). Secondly, it was stated that this label was less political and less emphasized marketing department. Lastly, the significance of market orientation approach was emphasized by stressing that the label tried to focus customers and forces which affecting them on the market further (Kohli and Jaworski, 1990: 3;Park and Zaltman, 1987: 7).
There are several studies related to the definition of the market orientation concept in the literature. Kohli and Jaworski (1990: 3) defines the market orientation as a construct which includes three pillars; 1) one or more departments to understand the current needs of customers, potential needs of them for the future, and factors affecting these needs, 2) share of this approach between departments, 3) several departments which are involved in activities to meet selected customer needs. On the other hand, Narver and Slater (1990: 21) defines the market orientation as more value creation for customers to increase business performance and continue its existence and as a culture based on developing behaviors effectively and efficiently in this direction. Sharipo who defined market orientation as an organizational decision-making process indicated that market-oriented firms ought to include three essential characteristics as the following (Shapiro, 1988: 120-122).
 Gathering information about all significant purchase activities and sharing this information among other units.  When these definitions are examined, market orientation is based on information gathering related to current and potential customers, disseminating this information across departments, and giving the required response as the whole organization by analyzing the obtained information (Çakıcı and Eren, 2005: 160). Market-oriented firms are open systems that have interaction with their environment and this situation provides different benefits to them (Naktiyok, 2003: 98). For instance; providing a competitive advantage, adaptiveness to innovation, increasing service quality and profitability, producing qualified new products, sales development, making market segmentation, easing the selection of target market, providing coordination between employees and managers can be evaluated as some of these benefits (Erdem, Gül and Gül, 2013: 77;Liu, 1995: 57).
There are various studies devoted to determine the effect of market orientation on business performance in the literature. Studies were conducted within this framework is as following: market and quality orientation affects business performance positively (Hamşıoğlu, 2011: 91); market orientation provides competitive advantage and affects organizational performance (Nikoomaram and Maatoofi, 2011: 639); market orientation affects business performance positively (Suliyanto and Rahab, 2012: 134); market orientation and innovation orientation have a positive effect on business performance (Erdem et al., 2013: 74). Moreover, Şahin and Aytekin (2019) have Süleyman Demirel Üniversitesi Vizyoner Dergisi, Yıl: 2021, Cilt: 12, Sayı: 31, 812-825. ISSN: 1308-9552 Süleyman Demirel University Visionary Journal, Year: 2021 determined that customer orientation as a sub-dimension of market orientation has a posivite effect on financial and non-financial performance which are sub-dimensions of business performance. On the other hand, they have indicated that customer orientation has a significant and negative effect on innovation performance. On contrary, some studies show that there is not any significant relationship between market orientation and business performance (Karahan and Özcifçi, 2008: 491). However, the dominant findings support the significant relationship among these two variables in the literature.
Starting from this fact, focusing too much on market orientation and continuous performance increase of firms might cause fatigue of employees (internal customers) and ignore their expectations. These circumstances bring about some problems about several issues particularly such as market and customer orientation in terms of firms. Because employees (internal customers) have a direct effect on following policies, providing customer satisfaction, and enhancing business performance. Therefore, it's tried to encourage both market orientation behaviors and improve business performance with internal marketing practices.
The internal marketing concept was utilized first by Berry, Hensel and Burke (1976), then George (1977) and Murray (1979). Even if Sasser and Arbeit didn't utilize the internal marketing concept directly, their study supports the main idea of internal marketing. Internal marketing became a popular concept after it had been defined by Berry (1981) with regards to organizational goals as a point of view considers employees as "internal customers" and tasks as "internal products" which satisfy the needs of these internal needs and requests (Rafiq and Ahmed: 2000: 450).
Internal marketing states that all employees have customers (internal or external) (Grönroos, 1981) and these internal customers (employees) must be satisfied in the workplace to give effective service to the external or internal customers (Berry, 1980). In other words, internal marketing is considered as a prerequisite for the efficiency of marketing operations between the firm and its customers (Compton, George, Grönroos andKarvinen, 1987, Grönroos, 1990). Hence, it might be said that internal marketing is an approach not only concerned with employees who give service to external customers but also employees who give service to internal customers. This approach evaluates each employee who has direct or indirect interaction with other employees as a customer of each other and this network among employees is considered as a crucial factor that affects organizational efficiency.
Internal marketing has three main stages during its development from past to present (Ahmed and Rafiq, 2002: 14). In the first stage, researchers (Berry, 1981;Sasser and Arbeit, 1976;Berry and Parasuraman, 1991) who focused on "employee motivation and satisfaction" express that internal marketing could contribute to organizational performance through providing employee motivation and satisfaction. In the second stage, it was stated that only motivated employees couldn't be adequate for organizational success, they ought to be "customeroriented" at the same time. In this context, activities that are done with a marketing-like approach such as developing employees who are sales-minded, customer conscious, and coordinated with their colleagues are evaluated as internal marketing practices (Grönroos, 1981;George, 1977). In the last stage, the idea was generated that internal marketing could be utilized as a tool for "strategy implementation and management of change" in addition to "employee motivation and satisfaction" and "customer orientation" (Winter, 1985). Moreover, it was indicated internal marketing could be implemented not only for service organizations but also for all kinds of organizations (Ahmed and Rafiq, 2002: 7).
After the stages of "employee motivation and satisfaction", "customer-orientation", and "strategy implementation and management of change", Rafiq and Ahmed (2000) remarked five elements of internal marketing as below: a) Employee motivation and satisfaction b) Customer orientation and customer satisfaction c) Coordination and integration among departments d) Marketing-like approach from top to bottom in the organizational hierarchy e) Implementation of corporate and functional strategies They identified internal marketing as planned efforts which include five elements above. In this regard, Internal marketing is defined as planned efforts which utilized marketing-like approach aimed at employee motivation to implement and associate organizational strategies on customer-orientation (Ahmed and Rafiq, 2002: 11). The main objective of this system where employees are considered as internal customers in is to evoke that management is responsive to its employees and care about their needs and requirements. The system moots that attainment of desired goods or services experiment in terms of external customers depends on employees satisfaction which are called as internal customers (Uygun, Güner and Mete, 2013: 131). This dependency is intensive in service organizations particularly. Because interaction between the employee and customer is acknowledged as the main determinant of service experience. Accordingly, service organizations ought to select suitable employees and have good interaction with these internal customers by comprehending their expectations, desires, goals, ideas, and concerns if the organizations would like to get maximum productivity from them (Kaya, 2006: 8-9). At the same time, it's crucial to enable some elements to employees such as maintaining internal marketing process consonant with human resources policies, encouraging intrapreneurship, rewarding innovative ideas, implementing planned promotion system fairly, improving technical and physical facilities (Uygun and Akın, 2017: 837).
There are various studies to determine the effect of internal marketing on business performance in the literature. Ayasi Çelik and Hacıoğlu (2017) have found that internal marketing has a positive effect on job satisfaction and remarks that internal marketing is an antecedent of successful external marketing. In addition to this, Çoban and Eren (2017) have indicated a positive relationship between market orientation and internal marketing. Kaurav Singh, Paul and Chowdhary (2015) have found out a relationship between internal marketing and job performance. Ergün (2013) has stated that a relationship between the elements of internal marketing and hospital performance. Findings of other studies as following: positive and significant relationship between. Zaman, Javaid, Arshad and Bibi (2012) have indicated internal marketing practices affect organizational commitment, market orientation, and job performance positively in the banking sector. Panigyrakis and Theodoridis (2009) have stated an effect of internal marketing on business performance in a positive way. Turkuz and Akyol (2008) have expressed internal marketing has a positive effect on each kind of business performance. Bouranta, Mavridoglou, Kyriazopoulos (2005) have indicated internal marketing has a positive and strong effect on market orientation. Lings (2000) has found internal marketing affects financial performance, holding employees, and being them disposed to obey operational rules and requirements despite of insignificant effect on business performance.
Banks as important service institutions have been improving rapidly in recent years. There are numerous public and private banks in this sector which involves intense competition. These banks develop policies based on success and profit intrinsically. They force their employees to be customer-oriented, have market-oriented mind, and increase business performance. Meanwhile, the banks also develop reward policies and various internal marketing practices to rise employees' motivation. Within this framework, this study has been carried out to evaluate whether internal marketing practices and market-oriented behaviors of banks affect business performance or not.
As understood from explanations, internal marketing aims not only employee satisfaction but also customer satisfaction and an important acquisition towards the market. However, it is seen that there is a minute amount of studies which evaluate both internal marketing and market orientation approaches at the same time. It is intended to fill this gap with this study.
The comparative advantage theory of competition (Hunt and Morgan, 1995) which is based on the resources and competencies of firms proposes the customer orientation as a comparative advantage resource. According to the theory, the customer orientation provides a basis for high-quality marketing practices and plays an important role for the effictiveness of the firms (Yağcı ve Çabuk, 2014: 272). In addition to this theory, resource-based view (Barney, 1991) postulates that human resources can be evaluated as a rare, valuable, non-substitutable, and imperfectly imitable resource which may provide competitive advantage for the firms. Therefore, internal marketing can be assessed as a strategy to use this resource more effectively. These theories constitute the theoretical background of the study. In this context, the hypotheses of the study have been developed.

The Purpose of the Research
This study aims to examine the effect of internal marketing practices and market-oriented approach of banks on business performance. In addition, it is going to be investigated whether internal marketing practices affect marketoriented approach or not. Literature involves various studies which inquire the relationship between internal marketing and business performance and the relationship between market orientation and business performance. However, any studies which include internal marketing, market orientation, and business performance at the same time couldn't be found. Therefore, it becomes more of an issue to determine the idea of employees working in banks within this scope.

Variables of the Research
As it can be seen in the research model, the variables of the study are "internal marketing", "market orientation", and "business performance". The scale developed by Money and Foreman (1996) and adapted to Turkish by Kocaman, Durna and İnal (2013) was utilized to measure the internal marketing experience of participants which includes 15 items and two dimesons. The scale developed by Narver and Slater (1990), and adapted to Turkish by Bulut, Yılmaz and Alpkan (2009) was utilized to measure market-oriented approach of participants which includes 16 items and three dimensions. Lastly, the scale developed by Erdem et al. (2013) was utilized to measure business performance which includes 12 items.

The Scope of the Research, Data Collection Techniques and Procedures
For the study, "Ethics Committee Approval" no 77040475-000-E.2000256263 dated 18.10. 2020 is taken from the Ethics Committee of Atatürk University. Employees working in banks' branches in central Erzurum and Oltu district constitute the scope of the study. Intensive usage of internal marketing and market-oriented approach in the banking sector is the main reason for the selection of banks in this study. In this context, 300 questionnaires were distributed to 300 bank employees with the convenience sampling method. 125 questionnaires were convenient to use for the analyses among questionnaires returned. The reasons for the low return rate in terms of questionnaires are the unwillingness of some banks to let their employees to participate this survey, pandemic period, and distance working method during the pandemic.
The questionnaire was utilized as the data collection tool in this research. The questionnaire has four parts. In the first part, there are questions about the demographic of participants and features of the banks. In the second part, the internal marketing scale with 15 items takes part. Market orientation scale with 16 items is in the third part while business performance scale with 12 items in fourth. Items of the scales were directed to participants with 5 Likert type questions from 1=Strongly disagree to 5=Strongly agree.

The Limitations of the Research
Time, cost, and access are evaluated as the most main limitations of the research. In addition, the selection of just one sector (banking) is another limitation. Lastly, an unwilling approach of some banks, pandemic period, and flexible working systems during this process are essential limitations of the research.

Demographic Findings
Findings about the demographics of participants are shown in Table1. In this study, male participants in terms of gender, 31-40 years old group in terms of age, bachelors in terms of education level, working for 6-10 years in terms of experience, Vakıfbank in terms of banks, operation in terms of department are dominant.

Factor Analysis Findings
Exploratory factor analysis was run to measure the validity and reliability of the scales were used. Findings obtained after analysis are presented in the Table 2. We measure and reward employee performance that contributes most to our organization's vision ,841 In our organization, those employees who provide excellent service are rewarded for their efforts ,821 We place considerable emphasis in this organization on communicating with our employees ,758 In this organization, the employees are properly trained to perform their service roles ,703 We use the data we gather from employees to improve their jobs, and to develop the strategy of the organization ,646 Our organization offers employees a vision that they can believe in ,631

Personnel Development; Variance Explained = 35,745; Cronbach's Alpha = 0,909
In our organization, we go beyond training and educate employees as well ,813 Skill and knowledge development of employees happens as an ongoing process in our organization ,791 We teach our employees "why they should do things" and not just "how they should do things" ,784 Our organization communicates to employees the importance of their service roles ,756 We prepare our employees to perform well ,737 Our organization views the development of knowledge and skills in employees as an investment rather than a cost

The Scale of Business Performance; Cronbach's Alpha=0,911
My bank is better than competitors in terms of product/service quality. ,847 My bank is better than competitors in terms of effectiveness. ,794 My bank is more successful than competitors in terms of new product development. ,788 My bank is better than competitors in terms of level of goal achievement. ,781 My bank is better than competitors in terms of providing customer satisfaction. ,746 My bank is better than competitors in terms of sales. ,728 My bank is better than competitors in terms of corporate image and reputation. ,727 My bank is better than competitors in terms of occupancy rate. ,711 My bank is better than competitors in terms of market share. ,706 My bank is better than competitors in terms of employees' job satisfaction. ,665 My bank is better than competitors in terms of supplier satisfaction. ,653 KMO=0,899; Total variance explained 55,128 As a result of the factor analysis, two-dimensional structure of the scale of internal marketing arose. The items "We communicate our organization's vision well to employees" and "This organization has the flexibility to accommodate the differing needs of employees" were removed from the scale because of the overlapping. Dimensions obtained were entitled as "reward and vision" and "personnel". Dimensions with a high level of reliability explain 72,511 percent of the total variance. Additionally, Kaiser-Meyer-Olkin (KMO) value which indicates whether the sample is adequate or not (0,903) and Bartlett's Test value which indicates whether the data is appropriate for normal distribution or not (1378.651) are in acceptable level.
As a result of the factor analysis, three-dimensional structure of the scale of market orientation arose entitled as "customer orientation, "competitor orientation", and "interfunctional coordination". The item "Measure customer satisfaction" was removed from the scale because of the overlapping. Two dimensions which have similarity with the original scale substantially are reliable and explain 71,588 percent of the total variance. Additionally, Kaiser-Meyer-Olkin (KMO) value which indicates whether the sample is adequate or not (0,874) and Bartlett's Test value which indicates whether the data is appropriate for normal distribution or not (1376.4) are in acceptable level.
As a result of the factor analysis, one-dimensional structure arose for the scale of business performance. The item "My bank is better than competitors in terms of profitability" was removed from the scale because of the overlapping. The scale is reliable and explains 55,128 percent of the total variance. Additionally, Kaiser-Meyer-Olkin (KMO) value which indicates whether the sample is adequate or not (0,899) and Bartlett's Test value which indicates whether the data is appropriate for normal distribution or not (776.396) are in acceptable level.

Regression Analysis Findings
Linear regression and multiple regression analyses were performed to determine whether the hypotheses of the study are supported or not. In this context; firstly, multiple regression analysis was performed to determine the effect of internal marketing practices on the market orientation approach. Afterward, linear regression was performed to determine the effect of the internal marketing and market orientation approach on business performance. The finds obtained after analyses are shown in the Table 3 and Table 4.  Yıl: 2021, Cilt: 12, Sayı: 31, 812-825. ISSN: 1308-9552 Süleyman Demirel University Visionary Journal, Year: 2021 In the multiple regression analysis model was developed to determine the effect of the dimensions of internal marketing on the dimensions of market orientation, significant and positive effect was determined among all dimensions in the %5 level of significance except "reward and vision -customer orientation". There are highlevel of significant effect among "reward and vision -interfunctional coordination" (β=,796); medium-level of significant effect among "personnel development -customer orientation" (β=,253), "personnel developmentinterfunctional coordination" (β=,420); low-level of significant effect among "reward and visioncompetitor orientation" (β=,178), personnel development -competitor orientation" (β=,186). In the linear regression analysis model was developed to determine the effect of internal marketing and market orientation, significant and positive effect was determined among all dimensions in the %5 level of significance.
When the analyses is evaluated, it is seen that internal marketing practices have significant effects on both market orientation and business performance. In a similar vein, market oriented approach has significant effect on business performance. In this context, hypotheses were developed within the scope of scales and sub-dimensions, all hypothses were supported except H2. Finding are presented on the Table 5. It can be indicated that the internal marketing and market-oriented approach have a positive effect on business performance due to the supported hypotheses. In addition, a significant and positive effect of internal marketing on market orientation has been found. There are some studies in the literature that supports these findings. In this context, researches of Ergün (2013), Bakan and Büyükbeşe (2014), Hamşıoğlu (2018) can be given as an example of this studies. Additionally, it is stated that internal marketing has an effect on several business strategies. Within this framework, some evaluations are carried out such as internal marketing affects profitability positively (Çağlar, 2004: 20), provides competitive advantage, (Güleş and Bülbül, 2004: 76), enhances organizational commitment (Yüce and Kavak, 2017: 79), contributes development of intrapreneurship (Uygun and Akın, 2017: 845-847), increase job satisfaction, and provides exhibition of customer and market-oriented approach of employees (İşler and Özdemir, 2010: 115;Yeniçeri, Kurt and Akgül, 2020;Uygun et al., 2013: 142).
Another result obtained from the study is that the market-oriented approach has a significant and positive effect on business performance. There are some studies that supported this in the literature as well (Çakıcı and Eren, 2005: 157;Şahin and Aytekin, 2019: 17;Bulut et al., 2009, 513;Slater and Narver, 1994: 46).
Within the scope of the finding obtained, banks as important and labor intensive institutions need to focus on internal marketing practices and develop policies that motivate employees, meet their expectations, and satisfy their requirements. Because effective and efficient use of human resources which is evaluated within the scope of internal marketing can both contribute to business performance and actualize several important business strategies.

CONCLUSION AND RECOMMENDATIONS
The banking sector has been rising its importance day by day all over the world. Nowadays, it is known that almost all monetary and commercial transactions are carried out via banks. It is observed that new banks have been popping up in the sector due to the importance of banks and increasing demand. Thus, competition has been growing up and banks implement various marketing strategies to take advantage against competitors in the fierce competition environment. Within this framework, internal marketing practices is one of most important strategy used. Firstly; the needs, expectations, and requirements of employees are met and then market-oriented activities are carried out with internal marketing strategies used more intensive by especially private banks. It is urged upon on this phenomenon in the study.
The main purpose of the study is to examine the effect of internal marketing practices and market-oriented approach of banks on business performance. Meanwhile, it is also investigated whether internal marketing practices affect market-oriented approach or not. There are various studies in the literature investigate the effects of internal marketing practices and customer-oriented approach on business performance separately. However, any studies couldn't find which examines the effect of these two concepts on each other and business performance. This circumstance constitutes the originality of the study.
According to the findings of the study, it has been determined that internal marketing practices and market-oriented approach of banks affects business performance positively. Besides, the effect of internal marketing on marketoriented approach of banks has been found as well. When dimensions are considered; it's seen that the reward and vision approach of banks contribute the employees to work as competitor-oriented and interfunctional coordinated but not customer oriented. In addition, it is found that policies of banks towards personnel development contribute to employees to work as competitor oriented, customer-oriented, and interfunctional coordinated. Moreover, all dimensions (reward and vision, personnel development, competitor orientation, customer orientation, interfunctional coordination) have a positive effect on business performance. According to results, it is thought that banks ought to attach importance to internal marketing activities and turn onto market-oriented strategies to take an advantage in the fierce competition environment. It is thought that these kinds of studies evaluated as subjective assessments make great contributions on indicators of banks such as profitability, sales, and market value financial performance of banks. Therefore, making both subjective and objective assessments at the same time. In this context, the findings of this study can be linked with previous studies (Slater and Narver, 1994;Çağlar, 2004;Güleş and Bülbül, 2004;Çakıcı and Eren, 2005;Bulut et al., 2009;Özdemir, 2010;Ergün ,2013;Uygun et al., 2013;Bakan and Büyükbeşe 2014;Yüce and Kavak, 2017;Uygun and Akın, 2017;Hamşıoğlu, 2018;Şahin and Aytekin, 2019;Yeniçeri et al., 2020) which found parallel results with this study. Hence, it can be stated that this study's findings are supported by the literature.
Rejection of banks for questionnaires and adopting part-time or distance working methods limited the sample size. Evaluations made totally in the scope of subjective elements are also another limitation of the study. For this reason, it is proposed to evaluate both public and private banks in the scope of both objective and subjective assessment criteria with a greater sample size for future studies. Nonetheless, the mediator role of market orientation for the effect of internal marketing on business performance can be suggested to future studies to investigate. Moreover, it can be useful to implement these evaluations on universities, hospitals, municipalities, and retail businesses which operate in the service sector.