Chapter 9:- Trading Area Analysis (TA) - Coggle Diagram
Chapter 9:- Trading Area Analysis (TA)
1) Criteria to consider include:-
Nature of nearby stores
Length of agreement
2) Steps 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 centre.
Step 3:- Select the location type.
Step 4:- Analyze alternate sites.
3) Trading Areas Analysis:-
Definition:- A trading areas is a geographic area containing the customer of a particular firm or group of firms specific goods or services.
Benefits of analysis :-
Discovery of consumer demographics and socioeconomic characteristics.
Opportunity to determine focus of promotional activities.
Opportunity to view media coverage patterns.
Identify whether competitors will open nearby.
Discovery of ideal number of outlets, geographic weaknesses.
4) The Trading Area of a New Store :-
Tools used include :-
1) Trend analysis
2) Consumer surveys
3) Computerized trading area analysis models
Factors to consider in Evaluating Retail Trading Area:-
1) Population size and characteristics
2) Availability of labor
3) Closeness to sources of supply
4) Economic base
5) Availability of store locations