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” Selecting the REGION MODE Criteria population growth average annual income of families
Selecting the PROVINCE MODE Criteria proximity to markets proximity to supply raw materials labor supply business climate
PROXIMITY TO MARKETS small businesses must be as near to their markets as possible
PROXIMITY TO SUPPLY RAW MATERIALS the company must consider locating where the raw materials are sourced reducing acquisition cost
LABOR SUPPLY small business must be located where its labor requirements will be supplied sufficiently Labor requirements: 1. Managerial 2. Specialists 3. Skilled laborers
BUSINESS CLIMATE thrive in places where they transact business more efficiently
Selecting the CITY or TOWN MODE Criteria population trend local laws & regulations competition compatibility with the community transportation public services police & fire protection reputation of the location
POPULATION TREND population size and density growth trends family size age breakdowns education income levels sex religion ethnic groups
LOCAL LAWS & REGULATIONS compare local laws or regulations of different towns locate a climate conducive to small business operation
COMPETITION locate areas with unsaturated types of businesses
COMPATIBILITY WITH THE COMMUNITY the small business must be compatible with the community where it will be located
TRANSPORTATION located where there are adequate and reasonably priced transportation services
POLICE & FIRE PROTECTION located where there are provisions for protection
PUBLIC SERVICES located where there are provisions for: water & sewage, trash & garbage collection and among others
REPUTATION OF THE LOCATION Cities and towns with established reputation
STEPS IN SELECTING A BUSINESS LOCATION FOR RETAILERS Choosing a viable community Selecting the trading area Evaluating the specific site
PROMOTING THE SMALL BUSINESS
WHAT IS PROMOTION activities used by SBOs to persuade prospective customers to buy the company’s products or services
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
METHODS OF PROMOTION Advertising Personal selling Publicity Sales promotion Word of mouth
TYPES OF ADVERTISING RETAIL SERVICE TRADE INDUSTRIAL INTITUTIONAL
TYPES OF ADVERTISING MEDIA TV Radio Newspaper Magazines Outdoor billboards Specialty advertising
TYPES OF ADVERTISING MEDIA Public transportation Yellow pages Direct mail Local cable TV Cinema Others: catalogs, samples, handouts and the like
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