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SERVICE FACILITY LOCATION (2.Saturation marketing (Saturation marketing is…
SERVICE FACILITY LOCATION
2.Saturation marketing
Saturation marketing is a group branches of the same firm tightly in urban and high traffic areas.
For example, Au Bon Pain.
1. Competitive clustering
Competitive clustering is a reaction to observed consumer behavior.
For example, when shopping for items such as new automobiles or used cars, customers like to make comparisons and convenience.
3. Marketing intermediariea
Services are intangible and its also cannot be stored or transported
For examples individuals are trained in the production of the service such as employment agencies
4.Substitution of communication
An appealing alternative to moving people from one place to another is use of telecommunication.
For example, at Hotel sometimes a receptionist can use for communication to help guest looking for rooms if that hotel is fully booked
5. Separation of Front from Back Office
-For many services the front and back office need not be co-located(e.g.: dry cleaning,shoe repair)
-In terms of separating the front from the back office can yield strategic benefits
-Viewing location decisionsfrom both an internal (employee) and external (customer) perspective highlights opportunities for self service and substitution of electronic media for physical travel.
6. Impact of The Internet On Service Location
Physical travel is irrelevant in the virtual world of the Internet.
Location still a concern for e-commerce retailers that must ship a product.
The concept of e-distance: the barrier created by internal and external navigation, arises from the desire to attract customers to a website. For ex: an undiscovered website is infinitely distant and one that is five clicks away might rule out 90% of the public
7. Site Considerations
Available real estate represents a major constraint on the final selection of a site.
-Site requires a physical visit to assess the local environment.
-The physical attributes to consider : access, visibility, traffic, parking, expansion, environment, competition, government, labor, and complements