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Chp9: Trading Area analysis (TA) - Coggle Diagram
Chp9: Trading Area analysis (TA)
2) Steps to choose a location:
Step1: 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.
1) Criteria to consider before selecting store location:
a) Population size
b) Competition
c)Transportation access
d) Parking availability
e) Nature of nearby store
f) Property costs
4) The trading area of a new store type:
Tools used to evaluate area:
a) Trend analysis
b) Consumer surveys
c) Computerized trading area analysis models
Factors to consider in evaluating TA
a) Population Size and Characteristics
b) Availability of Labor
c) Closeness to Sources of Supply
3) Trading area analysis:
Definition
A geographic area containing the customers of a particular firm or group of firms for specific goods or services.
Benefits of analysis
▪ Discovery of consumer demographics and socioeconomic characteristics
▪ Opportunity to determine the focus of promotional activities
▪ Opportunity to view media coverage patterns
▪ Identify whether competitors will open nearby
▪ Discovery of the ideal number of outlets, geographic weaknesses