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CHAPTER 13

CHAPTER 13. Small Business Marketing: Place. Learning Objectives. Describe small business distribution, and explain how efficiencies affect channels of distribution Explain how the location of your business can provide a competitive advantage

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CHAPTER 13

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  1. CHAPTER 13 Small Business Marketing: Place

  2. Learning Objectives • Describe small business distribution, and explain how efficiencies affect channels of distribution • Explain how the location of your business can provide a competitive advantage • Discuss the central issues in choosing a particular site within a city • Compare the three basic types of locations • Explain the types of layout you can choose • Present the circumstances under which leasing, buying, or building is an appropriate choice

  3. Describe small business distribution, and explain how efficiencies affect channels of distribution LO - 13.1

  4. Small Business Distribution

  5. Types of Distribution Channels • Direct channel: Products and services go directly from the producer to the consumer • Indirect channel: Products pass through various intermediaries before reaching the consumer

  6. Figure 13.1 - Channels of Distribution

  7. Types of Intermediaries

  8. Explain how the location of your business can provide a competitive advantage LO - 13.2

  9. Location for the Long Run

  10. Figure 13.2 - Identification of Regional and Local Markets

  11. Location for the Long Run

  12. Fortune magazine Entrepreneur Business Week USA Today Sources of information on the economic performance of regions, states, and cities Forbes U.S. Census Wall Street Journal Inc. magazine State Selection

  13. Table 13.1 - Regional Summaries of Population, Effective Buying Income, and Retail Sales Source: “2009 Survey of Buying Power.” Sales & Marketing Management, 01637517, Oct/Nov2009, Vol. 161, Issue 5. Sales & Marketing Management by Staff. Published by Nielsen Business Media.

  14. Table 13.1 - Regional Summaries of Population, Effective Buying Income, and Retail Sales Source: “2009 Survey of Buying Power.” Sales & Marketing Management, 01637517, Oct/Nov2009, Vol. 161, Issue 5. Sales & Marketing Management by Staff. Published by Nielsen Business Media.

  15. Table 13.1 - Regional Summaries of Population, Effective Buying Income, and Retail Sales Source: “2009 Survey of Buying Power.” Sales & Marketing Management, 01637517, Oct/Nov2009, Vol. 161, Issue 5. Sales & Marketing Management by Staff. Published by Nielsen Business Media.

  16. Table 13.1 - Regional Summaries of Population, Effective Buying Income, and Retail Sales Source: “2009 Survey of Buying Power.” Sales & Marketing Management, 01637517, Oct/Nov2009, Vol. 161, Issue 5. Sales & Marketing Management by Staff. Published by Nielsen Business Media.

  17. Table 13.1 - Regional Summaries of Population, Effective Buying Income, and Retail Sales Source: “2009 Survey of Buying Power.” Sales & Marketing Management, 01637517, Oct/Nov2009, Vol. 161, Issue 5. Sales & Marketing Management by Staff. Published by Nielsen Business Media.

  18. State Selection

  19. City Selection

  20. City Selection

  21. City Selection • Steps to calculate SCI • Determine the subject area • Establish the benchmark area • Divide retail sales by the EBI for trade and benchmark area • Divide the subject area’s conversion factor by the benchmark area’s conversion factor • Calculate the SCI for retail categories from the Survey of Buying Power

  22. Table 13.2 - Retail Sales by Store Group and EBI to Calculate SCI

  23. Discuss the central issues in choosing a particular site within a city LO - 13.3

  24. Site Selection • Questions that help in choosing the right site • Is the site located near target markets? • Is the type of building appropriate for the business? • What is the site’s age and condition? • How large is the trade area? • Will adjacent businesses complement or compete with the firm?

  25. Site Selection

  26. Site Selection

  27. Site Selection

  28. Site Selection

  29. Going Global

  30. Compare the three basic types of locations LO - 13.4

  31. Central business district (CBD) Shopping centers Location choices Stand-alone locations Service locations Incubators Location Types

  32. Location Types

  33. Incubator Benefits

  34. Incubator Benefits

  35. Explain the types of layout you can choose LO - 13.5

  36. Legal Requirements

  37. Retail Layouts

  38. Figure 13.3 - Free-Flow

  39. Figure 13.4 - Grid Layout

  40. Figure 13.5 - Loop Layout

  41. Layout and Design

  42. Manufacturing Layouts

  43. Figure 13.6 - Process Layout in a Restaurant Kitchen

  44. Figure 13.7 - Product Layout in a Pizza Kitchen

  45. Home Office

  46. Present the circumstances under which leasing, buying, or building is an appropriate choice LO - 13.6

  47. Leasing

  48. Leasing

  49. Types of leases Gross lease Net lease Net-net lease Triple-net lease Percentage lease Leasing

  50. Purchasing a Facility

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