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Retail Marketing > Lecture 8 > Flashcards

Lecture 8 Flashcards

1
Q

What is retail location defined as?

A

The physical and/or virtual space that a retailer inhabits in order to present its value proposition and provide an opportunity for its target market to access its merchandise and connect with brand values and associations (Ennis 2016)

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2
Q

What are the things location decisions are made on?

A
  • Floor space - chain rationalisation
  • performance assessment -store repositioning
  • localisation of assortment
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3
Q

What are the three types of location variety?

A

1) Solus/free standing
2) Unplanned shopping centtre
3) Planned shopping centre

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4
Q

What is a solus/free standing shop and what are the disadv?

A
  • This is a stand alone shop thats away from other shopping centres
  • Examples include DIY and furniture stores
  • Disad is that the retailer can’t rely on a ‘centre’ to attract customers and so has to take promotions on on their own
  • Planning permission may also be hard to find
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5
Q

What is a unplanned shopping centre ?

A
  • typically include the high street or central business districts in well established city centres
  • Relies on customer traffic generated by other traffic including business and leisure
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6
Q

What is a planned shopping centre?

A
  • This has been deliberately designed and developed for retail use
  • designed to serve a specific demographic segment
  • e.g trafford centre
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7
Q

According to Bowlby et al 1984, what is the ideal location sequence?

A

1) Search - The identification of geographical areas that may have potential for new outlets
2) Viability - Finding the best site available within these areas and forecasting the potential turnover from these
3) Micro- examination of all the features of a site that a relevant to the potential stores performance

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8
Q

what is meant by the key checklist criteria?

A
  • Retailers have developed detailed checklists of the factors to be considered when evaluating potential sites
  • It attempts to identify the most important locational factors for the success of the retail store, usually based on previous experience and/or judgement of retail managers
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9
Q

Who created one of the most detailed checklists?

A
  • Was created over 40 yrs ago by nelson (1958)

- Comprising 8 categories and 36 specific areas of evaluation

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10
Q

What are some examples of things on a checklist?

A

Competition - Size, number and type of competing stores and their location to your proposed store
Sustainability
Strength on interception - The ability to intercept customers as they move from place to place within the centres e.g those located close to popular routes such as between car parks, railway stations etc are likely to have a high chance of interception

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11
Q

What is the reference from Brown 1991 on shoppers visiting stores?

A
  • Shoppers are 35% more likely to visit stores that were similar than dissimilar
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12
Q

What does ‘population’ mean in terms of the site checklist?

A
  • Population is not only the most important determinant of store viability it also suggests the stores size is best suited to the specific location (Lord and Lunaregan 1999)
  • Looks are the spending power in the area, housing density, age, type of house (e.g new houses may attract DIY store)
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13
Q

What can maps be used in regards to getting info on customers?

A
  • Home addresses usually by getting post codes during savers, can also be done by reading license plates
  • Access routes can be depicted and different drive times from different areas
  • ## Valuable estimates of store penetration
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14
Q

How can retailers use mapping techniques?

A
  • Allows for before and after data to be seen in regards to changes in competition, promotional strategies
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15
Q

What new micro-isochrones?

A
  • At the location evaluation stage, these can be mapped around the prospective site, showing relevant drive- bounds and can see the closeness in terms of driving of competition
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16
Q

What are goad plans?

A

This is a birds eye view of a retail location

  • Shows the detailed shape and locations of over 325000 outlets in 1100 UK shopping areas
  • Updates by a team of surveyors every 1-2 years
17
Q

What info do goad plans provide ?

A
  • Street names and numbers
  • One- way streets
  • bus stops
  • pedestrians stopping etc
18
Q

What do Geodemographics provide a means for?

A
  • They provide a means to classify people by neighbourhood

- Links people to where they live based on established clustering techniques

19
Q

What are the primary research techniques used to collect data on locational positioning?

A
  • Specific studies at individual outlets, typically questionnaire based
  • These are flexible but small scale and also time consuming
20
Q

What are the secondary techniques used to collect data?

A
  • Gov sources e.g population census or a general household survey
  • Non gov - Market research, trade/ academic publications, the press , MINTEL
21
Q

What is the MOSAIC system?

A

This uses geographical information systems (GIS) and represents a fusion of several data sources

  • Defines 12 broad groups and 52 more specific types of neighbourhood
  • Every postcode is defined in terms of a MOSAIC group and type with a postcode on average covering 14.5 postcodes
22
Q

What are examples of the 12 broad groups and the 52 more specific ones?

A

12 broad groups - high income families, Surburban semis, council flats, stylish singles
52 groups - e.g within high income families the groups include rising materials, ageing professionals

23
Q

How have GIS providers evolved their databases?

A

From segments to fragments to individuals, in order to maintain their relevance to retailers micro marketing activities (Ziliani, 2000)

24
Q

What is micro marketing?

A
  • A type of marketing that targets a specific group of people in a niche market
25
Q

The locating a store within a shopping centre/district how are the different locations rated?

A
  • Using ‘prime pitch’
  • ## 100% rating is the location with the highest amount of customer traffic usually where the anchor stores are located and accessibility is easy due to close proximity with transport services
26
Q

How big of an impact do planning regulations have on the location of stores?

A
  • Davies and Bennison (1978) complained that in the UK the spatial organisation of shopping districts were more the results of planning policies than of market forces
  • These plans incorporate national planning guidelines and indicate major areas of action such as development
27
Q

What is the refusal of planning permission usually due to?

A
  • Issues with sustainability with the land use for retailing
  • traffic related issues
  • Impact on existing centres
  • Design quality
28
Q

How can a retailers location help with its success?

A

Through the use of geodemographics, Mosiac etc the right market can be located and this is where the firm can be placed - If not located in the right areas, will lose sales won’t be as successfull etc

  • Allows accessibility to be seen through use of goad maps, which is important for pedestrian access, delivery access, car access etc e.g Manchester where two stores failed as only accessible via subway and escalator also parking availability
  • Competition, it has been found that ‘anchor’ stores can be powerful to non anchor stores in terms of profitability rg 35% stat, shoppers linking shops
  • May have benefits of other leisure actives such as gyms, businesses which may provide footfall
29
Q

What does McGoldrick mean by ‘the rise of the data men’?

A

This refers to the he virtual ubiquity of powerful, low cost computing facilities, a wide range of computerized databases that are now available. When coupled with the new generation of location models, these provide a rapid, low cost means of assessing, profiling and comparing market opportunities, screening potential sites, defining catchment areas.

30
Q

What are some examples of things in checklists?

A

Population - size, profile,income levels

costs - purchase price, leasing terms etc

31
Q

What are the three main areas of objection to retail developments?

A
  • Land use
  • Traffic
  • Impact
32
Q

What has land use got to do with declining new site?

A
  • If within greenbelt chances of success are low they are generally opposed
  • Must be sustainable and not deter future generations from meeting their needs
  • More flexible attitude is given to industrial land provided an alternative is available
  • May have physical of virtual intrusion
33
Q

What has traffic got to do with declining new site?

A

Generally relate to the immediate access to the proper store or the increased low on surrounding roads

Retail Marketing (6 decks)

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