Impact of changes in external marketing environment on the development of retail trade in Georgia

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Ivane Javakhishvili Tbilisi State University Press
In the article retail trade is considered an important field of Georgia’s economy providing delivery of wide range of products to the customers. At the same time it is also an important source of employment and income of population. Therefore, according to the author, finding new ways for further development of retailing can play a great role in the country’s economy. In order to find these ways the author analyses political, legal, demographic and economic factors in the external marketing environment of retailing enterprises. In her opinion, it is only possible for retailer work effectively if marketing strategies are based on evaluation affects of these factors. The author thinks that the political situation in Georgia nowadays is favorable for the development of retailing. She believes that general lines of the development of retailing are identified correctly and the population has the possibility to obtain products safe for their life. Retailers, at the same time, observe the requirements of basic legal documents, regulating retailing, as one of the fields in business. These documents consider the requirements of the contract, regulating association with Europe. Though, as it is said in the article, the process of arrangement of the legal environment of retailing is not finished yet. The basic normative acts, regulating retailing, provide the possibility to find out the business-operators breaking the principles of food safety. This pushes the traders to work legally. Technical Regulations on hygienic conditions and rules of supply and sale of unpacked products in retail trade, it is considered as a guide to retailers in the process of storage and sale of food products. The protection of consumers’ rights is provided by its requirements. The author of the article describes the demographic environment in terms of increase and decrease of the number of population; she analyzes the birth rates, death rates and migration and makes relevant conclusions. In the context of the factor of retail trade, the article focuses on international travelers and, in this direction, the current situation in the country. The author of the article, in the process of discussing the economic environment, analyzes the income of the population and living standards. She considers that retailers and active managers, taking into consideration the standard of living, must decide on possible ways to develop retail trade in Georgia. The author says that people’s living standards “dictate” what kind of retail trader enterprises should be open at a given stage for the development of a profitable economy.
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Retail trade, external marketing environment, political-legal environment, economic environment
Economics and Business, №2, 2019, pp. 142-155