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Ch:9 Trading Area Analysis - Coggle Diagram
Ch:9 Trading Area Analysis
Criteria to consider before selecting store location
Transportation access
Parking availability
Competition
Nature of nearby stores
Population size
Property costs
Legal restrictions
Length of agreement
Step to choose a location
Step 1: Evaluate alternate geographic (trading)
areas in terms of residents and existing retailers
Step 2: Determine whether to locate as an
isolated store or in a planned shopping center
Step 3: Select the location type
Step 4: Analyze alternate sites
The Trading Area of a New Store
Tools use to evaluate area:
Computerized trading area analysis models
Trend analysis
Consumer surveys
Trading-Area Analysis
Definition
Trading area is a geography area containing the customers of a particular firm or group of firms to specific goods or service
Benefits of Trading Area Analysis
Opportunity to determine focus of promotional activities
Identify whether competitors will open nearby
Discovery of ideal number of outlets, geographic weaknesses
Opportunity to view media coverage patterns
Discovery of consumer demographics and socioeconomic characteristics