Trade Area Analysis - 1660 Words

TRADE AREA ANALYSIS Trade Area Analysis, Development and Mapping Trade area analysis and mapping describe the characteristics of the area around a store or network of stores. Without accurate trade area definitions, you cannot measure the key statistics that impact a stores performance. Use trade area analysis to aid site selection and target marketing. Trade area analysis and mapping tell you: †¢ Where a stores customers are coming from †¢ How many customers you have in a trade area †¢ Where to look for for more customers Benefits of Trade Area Analysis †¢ Identify gaps or overlaps in the market coverage of your existing store network, and make corrections by opening, closing or moving stores †¢ Make better site selection†¦show more content†¦The dots indicate the locations of demographic samples. Red colored dots fall within the 5-mile radius. Note that samples located across the river would be included in the 5-mile demographic summaries for this site. Gravity Models: Gravity models, or spatial interaction models, define a trade area based on its attractiveness relative to other trade areas. These models provide an approximation of store trade area by putting the distribution of all locations (including competitors) into a geographical context and evaluating each locations relative attractiveness. Typically, a distance decay curve is used to model the spatial interaction of individual locations. Often size of the store, or store sales if available, is used to drive the attractiveness parameter. Gravity models are more sophisticated than simple radial approximations, but they still do not account for logistical barriers and they are limited by the availability and accuracy of competitor data. Moreover, gravity models basically are sophisticated algorithms, which may not be appropriate for non-technical analysts. Figure 2a. Gravity based patronage probability model showing the theoretical store trade area. The blue – green – yellow – red progression represents zones of increasing patronage probability. Figure 2b. Gravity based patronage probability model showing the locations of demographic sample sites. Blue colored dots fall within the patronage probability zones. Green colored dots indicateShow MoreRelatedAsean India Free Trade Area ( Aifta )1337 Words   |  6 Pages ASEAN-India Free Trade Area (AIFTA) In this paper, I shall provide you with important and detailed information, entailing who ASEAN-India is, how ASEAN-India was founded, why there was a need for ASEAN-India, and what type of business conducted, along with its contributing countries. This paper will further discuss each agreement that was signed into effect, to include The Framework Agreement on Comprehensive Economic Cooperation, The Trade in Goods Agreement, Trade in Services Agreement, and theRead Morehuman resource961 Words   |  4 Pages   Which of the following is true of the CFTA? 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