Location is critical to the success of any business in the Service Industry. The location can be one of the single most important choices a company will make in establishing their business and setting themselves up for growth possibilities in the future. A good strategy for a business is to start with their general assessment of their clientele demographic, and then use those results to help strategically locate themselves in order to hedge the competition. In addition to a general demographic assessment, the business might also benefit from conducting a location analysis to help determine the ideal location.
Demographics
Understanding the demographics of your potential clientele is the ideal starting data for determining a location. Starting with the most appropriate demographics can help a business get started on the right path. An appropriate demographic would be one that would produce an outcome that is related to the human population that the business wants to attract. The demographics are going to be the arrow that helps direct the business location. Looking at the general demographics like age, income, and households are important; however, looking at more appropriate demographics for a service is better. For example a restaurant might want to choose a demographic like neighborhood traffic. This might produce an outcome that shows locations that are more concentrated with retailers. The flow of traffic is important to a business as well. If the business is a restaurant then a demographic that focuses on volume is important . The more volume in the location the more potential chances for there to be an influx of customers. A second example could be a dry cleaning business that might want demographics that produces a ...
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... any local competitors to find out what helps them succeed, or it would cross-reference the marketing plan to make sure the demographics, and location make sense to the overall agenda. In any case, asking for outside help when deciding on a location can be very impactful when comparing two or more locations that seem to meet the requirement.
In conclusion, the ideal starting point for a business in the service industry is to find the demographics that best fit with the target market, and then use those demographics to hedge the competition by finding a location that brings out the core competences of that business. Once those are set, the next step is to determine if contracting out for professional assistance in generating a location analysis is beneficial to the company to help determine the best location then the company should not be shy in asking for help .
1) For a channel to succeed four location decision factors are considered; economic conditions, competition, the strategic fit, and the cost of operations. Stores need ...
The company first needs to collect demographic and geographic information relevant to potential store location choices in order to segment its market. It is extremely important that the marketing team gather thorough information in order to ensure they are focusing efforts in areas where the company’s products will be best received. This will help them in achieving maximum sales.
Every company and/or organization starts and operates to achieve a single major goal, which is normally included in the company’s mission statement. Setting a goal, however, does not translate into success on its own; it is only the fist step. Understanding market segmentation is the second most important aspect of doing business. “Sellers and advertisers want to be able to determine what the potential market is for their product or service, as well as the best ways to reach potential consumers” (Terrell, 2013). Once a goal is set, an organization first must decide if it wants to operate locally, regionally, nationally, and/or internationally, as the size of the geographic coverage has a large influence on demographic coverage. It is crucial for a business to understand what it is meant by demographic coverage; it is to understand people’s age, gender, culture, social norms and beliefs, and income in a given geographical size (Grewal & Levy, 2010). Let’s take a high class and luxury bar as an example to explain the importance of these key factors. If the bar is located in an area where the average age is 60, it will be safe to assume that the business will have difficulties finding many customers. Similarly, the business will not be able to survive if it is located in an area that has a lot of Mormon or Muslim residents as drinking alcoholic beverages is prohibited by these religious practices. On the other hand, if the said bar is located in an area such as San Francisco where the average age is around 38 years old, the median income is ~$70,000, and the culture is a melting pot of many races with many beliefs and behaviors, it will most likely thrive to its full potential (city-data.com, 201...
According to Alvin J. Silk, a positioning statement is designed to define who are a company’s customers, what set of needs does the product fulfill, and why is the product the best one to fill those needs (2006, p. 90). I found this question challenging because a positioning statement should define “the place the firm wishes to occupy in its’ targe...
One of the most important areas to consider is customer service. The atmosphere of a store
Place, intended as the firm 's distribution, and pricing are also important element of the marketing mix used by
...onsider the market characteristics as not important. Hoel, unlike others mentions that a good location is also an important factor for success as it helps in hiring good professionals.
...arrell, P. N. & Wood, P. A. (1994). International Market Selection by Business Service Firms: Key Conceptual and Methodological Issues. International Business Review, 3(3), 243-261.
Provide a high-level description of potential sales and revenue growth opportunity that your target nation provides.
Knowing that, the manager understands that their website content better affects visitors in Florida than New York. This information helps managers to increase their understanding of customers needs and interests in different areas so that they can get new techniques of advertising into work to gain higher revenues through intellectual marketing
It has been observed since the inception of Marketing that marketers target to only specific market and how they identify such market. There are certain criteria or base they use to identify the consumers who they would be serving to. Customers do have unique requirements satisfaction levels and aspirations. Some customers however are similar with respect to their requirements of goods and services. In such case if their needs are identified and they can be grouped in quantities of a specific size then it can be segmented. Now each customer group have specific expectations and businesses must cater to the needs of the segmented that has been targeted.
Once a business has successfully completed segmentation based on the market into various groups the targets will be chosen. As we all know no one unique strategy will be able to appeal to all consumer segments therefore being able to come up with different strategies for specific targets are a vital aspect of marketing.
Insightcommunity.com. (N/A). Picking The Right Spot For A Data Center. Retrieved on March 10, 2011 from https://www.insightcommunity.com/case.php?iid=1349
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.