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GGR252 Lecture 2

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University of Toronto St. George
Stephen Swales

January 14, 2014 GGR252 Lecture 2  Why do most restaurants fail within a few short years? o Do not select the right location relative to their target market o Retail chain = 4 or more stores in the same line of management and/or ownership  Tend not to go out of business  Rarely have difficulty  If they do, then they can pull back and have presence elsewhere o Independent store = 1 to 3 stores  Vast majority are just 1 store  Traditional family store is a typical independent  Three considerations of marketing geography o Climate change  Must consider the human attributes in conjunction with the physical attributes  Venice  Rising water levels are a product of climate change  Due to melting ice caps  Due to water expansion when the water warms  Can afford to mitigate or adapt o Place and landscape  Character of place  Physical setting  Level of mobility of the population, goods, ideas, things  Distinctive landscape o Church or cathedral  Almost always the tallest building in a medieval town  Most physically, culturally, politically, and socially dominant feature o Location analysis  Must identify the retail market (the demand)  Use geographical analysis  Power centre = cluster of big boxes, usually not connected, must drive from store to store within the same complex, located in the outer suburbs  Shopping mall = completely enclosed environment, located in the suburbs  Distinctive land use (e.g., not random)  Where are the shopping malls or hospitals? Why are they found where they are? Where should we put them next? Which should we expand?  Seattle  Coastal location  Clustered high density downtown  Low density suburbs  High levels of access to the downtown (e.g., railway, ships, highway, airport)  Most big cities are close to the lake  Vancouver  Confined by mountains and major waterways  Low density suburbs  High density downtown (e.g., apartment towers, office towers) o Commercial office towers command the most central sites o Retail land uses command the most visible and most accessible sites  Tend to be in close proximity, if not in the same building, as office towers  Ancillary retail = retail facility is in the same building as an office tower  Benefits from the presence of people  Small scale shopping mall o Entirely enclosed o Big stores at opposite ends o Lots of parking facilities o Typical market (e.g., low density, middle income, highly mobile) in the immediate vicinity  Snow's study of cholera households o Contemporary wisdom was that cholera was airborne o Collected and mapped geographical data to find spatial pattern o Described cholera deaths as a clustered pattern o Two anomalies:  People distant from the pump are dead  Intervening opportunities = provide an intervening opportunity between the target market and another potential destination o People traditionally shopped on the main street of a big city before shopping malls were built (e.g., Simpsons = The Bay) o Population began to move out to the suburbs (e.g., middle income, mobile) o Place a shopping mall to intercept the people who have moved out to the suburbs who might be going downtown to shop  To intercept the customers that traditionally go downtown  These people are dead because they traveled to the vicinity of the Broad street pump  People near the pump are not dead  Brewery workers drank beer instead of water  Convent nuns had their own well  Census = the major data source for market characteristics o Based on their home (e.g., household survey) o Generally not based on the workplace market  E.g., PATH  Ancillary retail  Targeting office workers (~100,000 people)  Distance decay = the greater the distance, then the less likely you are to interact with something (e.g., selecting a shopping mall) o Decreased interaction with increased distance from the site  Clients of storage facilities in Montreal, Quebec o Distance decay  The small circles (customers) are clustered closer to the big circle (facility) of the same colour o Physical setting  The river system increases the distance you have to travel, so enhances distance decay o Average household income  Choropleth map
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