Marketing and advertising practices of Turkish entrepreneurs in transition economies: Evidence from Georgia

Abstract

As a transition economy, Georgia has an uncertain, complex, and immature business environment, typical of transition economies in the Eurasian region. In an effort to provide insights into marketing and advertising practices in the Eurasian transition economies, this study empirically examines the marketing and advertising practices in Georgia through two surveys conducted with Turkish entrepreneurs in Georgia and Georgian consumers. On the one hand, the findings of the survey of the Turkish entrepreneurs indicated that an overall adaptation strategy is needed in Georgia; in addition, foreign entrepreneurs willing to enter the Georgian market are advised to offer a variety of products by collaborating with local distributors and agents. Although Georgian consumers do not have high income, low-price strategy does not always work as consumers equate low price with inferior quality. Marketing of prestigious products are to be sold at higher prices and appropriate product positioning strategies must be developed for each target market segment. Merchandising strategies must be congruent with the target market served as well as retail stores/outlets utilized. On the other hand, the Georgian consumers demand better customer service and increased variety of products; advertising is welcomed to a certain extent as long as advertising provides useful product/brand and company information.