Market Area Analysis-calculate profitability Flashcards
1
Q
what is market-area analysis used for
A
determine if location in the area would be profitable and where the best location would be within the market area
2
Q
how do you determine the range?
3 steps
A
1-compute range (how far are people willing to travel)
2-compute the threshold (how many customers are needed to make a profit)
3-Draw the market area
3
Q
how do you draw the market area
A
1-draw range and adjust based on competition
2-count people within range-if it meets the threshold, then the location is ok
