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 .
This will help them in achieving maximum sales. The company’s marketing team should first collect information regarding the income level of customers who live in the vicinity of the potential store location. They should determine income of the area’s population in order to make sure that it matches that of their typical customers. They should also take a look at education level as well occupational information for the area in question.
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...
Place, intended as the firm 's distribution, and pricing are also important element of the marketing mix used by
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 ...
Provide a high-level description of potential sales and revenue growth opportunity that your target nation provides.
Research would be your next step. Your market research should focus on the information you need, to help you to formulate a strategic plan and make business decisions. Market information potentially covers a vast range of data, from global macro-trends and statistics, to very specific and detailed local or technical information, so it’s important to decide what is actually relevant and necessary to know. However there’s no point spending time researching global statistical economic and demographic data if you are developing a strategy for a relatively small or local business. It would be far more useful to carry out your own primary research about the local target market, buying patterns and preferences, local competitors, their prices and service offerings.
...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.
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...
One of the most important areas to consider is customer service. The atmosphere of a store
Now days, companies are searching for new ways of gathering data so that they can get useful data in order to make well informed decisions regarding the market they are operating in. Google analytics is considered one of the best tools offers extensive amount of data to business owners for free. However, the success of business is highly depended on how well they can arrange data and customize their collected data corresponded to their business priorities. Google analytics provides beneficial information for companies regardless of their extent of operation. Google Analytics (Location data)
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
...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.
The marketing team determined strategies and media for advertising the products in each of the prospective countries, as well as locations of sales. The team also made a thorough study of workforce availability.