MKTG 355 Chapter Notes - Chapter 8: Traffic Flow, Family Dollar, Walmart
23 Mar 2017
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Metropolitan statistical area- a city with 50,000 or more inhabitants or an urbanized area of at least 50,000 inhabitants and a total msa population of at least 100,000. Micropolitan statistical area- a city with only 10,000 inhabitants in its core urban area. Evaluating specific areas for locations: strategic fit with target market, competition, economic conditions, cost of operating stores. Competition: level of competition affects the demand, some retailers are going urban, lack of competition, high level of disposable income, large, untapped labor force. Strategic fit: demographic, lifestyle profile, size and composition of households in an area, area needs to have consumers in the retailer"s target market, mcdonald"s families with kids, rei outdoor enthusiasts. Operating costs: vary across areas, affected by proximity of area considered vs. other areas where retailer operates, local and state legal environment has effect. How many stores to open in an area: economies of scale, one promotional cost for all stores.
