D. MARKETING A SMALL BUSINESS 8.02 Explain the factors affecting selection of the business location Identify place decisions faced by small business owners.

Convenience goods: Items bought out of habit and sold in numerous outlets; should be available close to consumer’s home or along the route traveled regularly. Shopping goods: Items purchased after comparing prices and features; should be located to make comparison easy for customers. Specialty goods: Items that consumers purchase infrequently and will make an extra effort to buy; location is not a major factor.

Downtown/central shopping district Neighborhood shopping center Community shopping center Regional shopping center or mall Super-regional shopping center Industrial park Stand-alone/freestanding Home-based

Downtown area Centrally located and easily accessible Offices and professional businesses Varying rental rates depending on the town/city

Neighborhood shopping center Close to residential areas Supermarket or drug store as anchor tenants Suitable for goods and services purchased frequently Low rental rates

Community shopping center Serves residents of many neighborhoods Convenience goods and shopping goods One or two major stores plus 10 or more smaller stores Variety or junior department stores as anchor tenants Rent affordable

Regional shopping center or mall Three or four anchor stores with 40 or more other stores Serves several towns or cities in the region Less accessible for some customers due to distance Rent high

Super regional shopping center Exceeds 750,000 square feet Many anchor stores and hundreds of smaller stores Designed to attract customers willing to travel great distances Rent very high Not recommended for new business owners

Industrial Park Developed on less expensive sections of land away from housing developments and downtown areas May be subsidized by communities in order to attract industrial businesses

Free standing Separate from other businesses Often located just outside shopping centers Dependent on drive-by traffic Must advertise Rent usually lower

Home-based Located in a private residence Suitable for businesses requiring little personal contact with customers or where work is picked up or dropped off No rent to pay Possible tax savings

Competition Direct: Businesses selling the same products or services. Indirect: Businesses offering different products or services yet competing for the same consumer dollars. Complementary: Businesses that sell products or services that can be used with other purchases.

Population in the Area Cultural characteristics Vocation Age Income Mobility Under-served consumers

Zoning Cost Features Traffic patterns Chosen land and/or building Proximity to target customers Proximity to other businesses