DETERMINING THE RIGHT LOCATION & PROMOTING THE BUSINESS.

Determining the right location

Determiningthe rightlocation & promoting the businessDeterminingthe rightlocationWhat is the right locationrefers to that one which bring the highest possible benefits to the firmright or wrongSelecting the REGIONMODECriteriapopulation growthaverage annual income of families

Selecting the PROVINCEMODECriteriaproximity to marketsproximity to supply raw materialslabor supplybusiness climate

proximity to marketssmall businesses must be as near to their markets as possible proximity to supply raw materialsthe company must consider locating where the raw materials are sourcedreducing acquisition costlabor supplysmall business must be located where its labor requirements will be supplied sufficientlyLabor requirements:ManagerialSpecialistsSkilled laborersbusiness climatethrive in places where they transact business more efficientlySelecting the CITY or TOWNMODECriteriapopulation trendlocal laws & regulationscompetitioncompatibility with the communitytransportationpublic servicespolice & fire protectionreputation of the locationpopulation trendpopulation size and densitygrowth trendsfamily sizeage breakdownseducationincome levelssexreligionethnic groupslocal laws & regulationscompare local laws or regulations of different townslocate a climate conducive to small business operationcompetitionlocate areas with unsaturated types of businessescompatibility with the communitythe small business must be compatible with the community where it will be locatedtransportationlocated where there are adequate and reasonably priced transportation servicespolice & fire protectionlocated where there are provisions for protectionpublic serviceslocated where there are provisions for: water & sewage, trash & garbage collection and among othersreputation of the locationCities and towns with established reputationSteps in selecting a business location for retailersChoosing a viable community Selecting the trading areaEvaluating the specific sitePromoting the small businessWhat is promotionactivities used by SBOs to persuade prospective customers to buy the companys products or servicesTypes of customer demandEstablished demand purchases made by people as a result of any or all of the following:a. Positive experience with the firms productb. Convenience of the locationc. Attractive appearance of the firmNewly created demand (promoted demand) when the firm engages in activities designed to attract people to buy from the firmMethods of promotionAdvertisingPersonal sellingPublicitySales promotionWord of mouthTYPES OF ADVERTISINGRETAILSERVICETRADEINDUSTRIALINTITUTIONAL TYPES OF ADVERTISING MEDIATVRadioNewspaperMagazinesOutdoor billboardsSpecialty advertising

TYPES OF ADVERTISING MEDIAPublic transportationYellow pagesDirect mailLocal cable TVCinemaOthers: catalogs, samples, handouts and the likeMethods of promotionPersonal selling direct, personal & face-to-facePublicity news generationSales promotion temporary sales incentivesWord of mouth promotion of satisfied customers