Location Based

Retailing
What is Retailing?

Retaillier (french word), which means to cut off

a piece or to break bulk.

According to Philip Kotler “ Retailing includes all

the activities involved in selling goods or
services to the final consumers for personal, non
– business use.

A retailer or retail store is any

business enterprise whose sale volume comes
primarily from retailing”.
Selecting a Retail Location

Identify the most attractive

markets in which to operate

Identify the most attractive sites

That are available within each
market

Select the best site(s) available

 Retail Formats

Store Based Non Store Based

Business
District Shopping
Centers/Malls Street Mail
Free Standing Peddling Order

Non Traditional Direct Interactive Internet

selling TV
 Location of store based
retailers
Central Business Districts (CBD) usually consists
of an unplanned shopping area around the
geographic point at which all public
transportation systems converge; it is usually in
the center of the city and often where the city
originated historically

Secondary Business District (SBD) is a shopping

area that is smaller than the CBD and that
revolves around at least one department or
variety store at a major street intersection.
 Location of store based
retailers
Neighborhood Business District (NBD) is a
chopping area that evolves to satisfy the
convenience-oriented shopping needs of a
neighborhood, generally contains several small
stores (with the major retailer being a
supermarket or a variety store), and its located
on a major artery of a residential area.

Shopping Center (or mall) is a centrally owned

or managed shopping district that is planned,
has balanced tenancy (the stores complement
each other in merchandise offerings), and is
surrounded by parking facilities.
 Location of store based
retailers
Anchor Stores are the stores in a
shopping center that are the most the
most dominant and are expected to draw
customers to the shopping center.
Free-Standing Retailer generally locates
along major traffic arteries and does not
have any adjacent retailers to share
traffic with.
Shopping Center Advantages
over a CBD
Heavy traffic resulting from the wide
range of product offerings.
Cooperative planning and sharing of
common resources.
Access to highways and availability
of parking.
Lower crime rate.
Clean, neat environment.
 Shopping Center
Disadvantages

Inflexible store hours (open during mall hours

only).
High rents.
Restrictions as to what merchandise the retailer
may sell.
Inflexible operations and required membership in
the center’s merchant organization.
Possibility of too much competition and the fact
that much of the traffic is not interested in a
perticular product offering.
Dominance of the smaller stores by the anchor
tenants.
Advantages of Freestanding
Retailing

Lack of direct competition.

Generally lower rents.
Freedom in operations and hours.
Facilities that can be adapted to
individual needs. Inexpensive parking.
Limitations of Freestanding
Retailing

Lack of drawing power from complementary

stores.
Difficulties in attracting customers for the initial
visit.
Higher advertising and promotional costs.
Operating costs that cannot be shared with
others.
Stores that may have to be built rather than
rented.
Zoning laws that may restrict some activities
Your market has much to do with
how you market your product.
Direct Marketing
Direct marketing is a channel free approach to
distribution and/or marketing communications.
So a company may have a strategy of dealing with
its customers 'directly,'
For example banks (such as CityBank) or computer
manufacturers (such as Dell). There are no channel
intermediaries i.e. distributors, retailers or
wholesalers.
Therefore - ‘Direct' in the sense that the deal
is done directly between the manufacturer and
the customer.
direct marketing media

Inserts in newspapers and magazines.

Customer care lines.
Catalogues.
Coupons.
Door drops.
TV and radio adverts with free phone
numbers or per-minute-charging.
...and finally - and most importantly - The
Internet and New Media.
 Notice how the folks operating this stand have
put their cut flowers together into attractively
wrapped bouquets. This helped them to draw
customers to their stand and to receive a higher
price for their flowers.
When it comes to marketing
strategies, there is no
substitute for having a
good, quality product.
Your reputation as a producer
depends on the quality of your
product.
Direct Marketing Responsibilities

You will have to prepare your

product in a form that can be sold.
You will have to find your customers
either by going to them or having
them come to you.
You will have to choose a location for
your marketing efforts.
Direct Marketing Responsibilities

 You may have to advertise your products or

operation to attract customers.

 
 You will have to deal with individual
customers.
 Since you are selling
  food for human
consumption       
you will need to address
customer satisfaction
        and perhaps deal
with a few customers
        who are not
satisfied.   
Direct Marketing

Profits: potentially higher

Cash flow: customer pays you directly
Marketing control: can produce what you
want and set your own profits
Diversity: works well with small farms
Direct Marketing

Volume: less product is usually sold

than with other marketing ventures
Time: requires more of a time commitment
People skills: you are dealing directly with
people (need to always wear a happy face)
Marketing skills: its competitive, you are
going to have to sell your product
Thank You