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Determining the right location & promoting the business

Determining the right location & promoting the business. Determining the right location. What is the right location. refers to that one which bring the highest possible benefits to the firm. “right” or “wrong”. Criteria. MODE. Selecting the REGION. population growth

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Determining the right location & promoting the business

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  1. Determiningthe rightlocation & promoting the business

  2. Determiningthe rightlocation

  3. What is the right location • refers to that one which bring the highest possible benefits to the firm

  4. “right” or “wrong” Criteria MODE Selecting the REGION • population growth • average annual income of families

  5. Criteria MODE Selecting the PROVINCE • proximity to markets • proximity to supply raw materials • labor supply • business climate

  6. proximity to markets • small businesses must be as near to their markets as possible

  7. proximity to supply raw materials • the company must consider locating where the raw materials are sourced • reducing acquisition cost

  8. labor supply • small business must be located where its labor requirements will be supplied sufficiently • Labor requirements: • Managerial • Specialists • Skilled laborers

  9. business climate • thrive in places where they transact business more efficiently

  10. Criteria MODE Selecting the CITY or TOWN • population trend • local laws & regulations • competition • compatibility with the community • transportation • public services • police & fire protection • reputation of the location

  11. population trend • population size and density • growth trends • family size • age breakdowns • education • income levels • sex • religion • ethnic groups

  12. local laws & regulations • compare local laws or regulations of different towns • locate a climate conducive to small business operation

  13. competition • locate areas with unsaturated types of businesses

  14. compatibility with the community • the small business must be compatible with the community where it will be located

  15. transportation • located where there are adequate and reasonably priced transportation services

  16. police & fire protection • located where there are provisions for protection

  17. public services • located where there are provisions for: water & sewage, trash & garbage collection and among others

  18. reputation of the location • Cities and towns with established reputation

  19. Steps in selecting a business location for retailers • Choosing a viable community Selecting the trading area • Evaluating the specific site

  20. Promoting the small business

  21. What is promotion • activities used by SBOs to persuade prospective customers to buy the company’s products or services

  22. Types of customer demand • Established demand – purchases made by people as a result of any or all of the following: a. Positive experience with the firm’s product b. Convenience of the location c. Attractive appearance of the firm • Newly created demand (promoted demand) – when the firm engages in activities designed to attract people to buy from the firm

  23. Methods of promotion • Advertising • Personal selling • Publicity • Sales promotion • Word of mouth

  24. TYPES OF ADVERTISING • RETAIL • SERVICE • TRADE • INDUSTRIAL • INTITUTIONAL

  25. TYPES OF ADVERTISING MEDIA • TV • Radio • Newspaper • Magazines • Outdoor billboards • Specialty advertising

  26. TYPES OF ADVERTISING MEDIA • Public transportation • Yellow pages • Direct mail • Local cable TV • Cinema • Others: catalogs, samples, handouts and the like

  27. Methods of promotion • Personal selling – direct, personal & face-to-face • Publicity – news generation • Sales promotion – temporary sales incentives • Word of mouth – promotion of satisfied customers

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