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