Page 438 - Foundations of Marketing

Retailing, Direct Marketing, and Wholesaling | Chapter 14 405

They must make desired products available, create stimulating shopping environments, and
develop marketing strategies that increase store patronage. In this section, we discuss how
location, retail positioning, store image, and category management are used strategically
by retailers.

Location of Retail Stores

You have likely heard the phrase “Location, location, location,” commonly used in the real
estate business. Location is also critical to business success. Making good location decisions
is even more important because, once decided, it is the least flexible variable of the marketing
mix. It is such an important strategic decision because location dictates the limited geographic
trading area from which a store draws its customers. Retailers consider various factors when
evaluating potential locations, including location of the firm’s target market within the trading
area, kinds of products being sold, availability of public transportation, customer characteris-
tics, and competitors’ locations.
In choosing a location, a retailer evaluates the relative ease of movement to and from
neighborhood shopping
the site, including factors such as pedestrian and vehicular traffic, parking, and trans- centers A type of shopping
portation. Retailers also evaluate the characteristics of the site itself. They research the center usually consisting of
types of stores in the area and the size, shape, and visibility of the lot or building under several small convenience and
consideration. In addition, they must scrutinize the rental, leasing, or ownership terms. specialty stores
Retailers should look for compatibility with nearby retail-
ers, because stores that complement one another draw
more customers with similar product needs for everyone.
Look at the advertisement for Boucheron Jeweler, a very
high-end, Paris-based jewelry company. This ad promi-
nently announces the fact that Boucheron was the first
jewelry store in the very chic square, Place Vendôme, in
Paris. The fact that it makes this announcement in French
indicates that its target market is quite worldly and edu-
cated. The ad also lists its fashionable London locations.
By alerting potential customers to the locations of its
stores, Boucheron is encouraging its target market to think
about the illustrious locales, including their upscale retail
neighbors, and to draw an image in their minds about the
high quality of the products. The close-up photo of the
rings emblazoned with the Boucheron logo underscores
the prestige associated with purchasing these products.
Having a store in Place Vendôme improves the overall lux-
ury image of Boucheron because it connects the chic area
of Paris and the chic brand in the customer’s mind.
Some retailers choose to locate in downtown central
business districts, whereas others prefer sites within shop-
ping centers. Some retailers, including Toys”R”Us, Walmart,
Home Depot, and many fast-food restaurants, opt for free-
standing structures that are not connected to other buildings,
but may be located within planned shopping centers. Some-
times, retailers choose to locate in less orthodox settings
where competition will be lower and where consumers have
limited other options. Courtesy of Boucheron
There are several different types of shopping centers,
including neighborhood, community, regional, superre-
gional, lifestyle, power, and outlet centers. Neighborhood Location of Retail Stores
shopping centers usually consist of several small conve- In this advertisement, Boucheron draws the viewer’s attention to its
nience and specialty stores, such as small grocery stores, gas prime locations in London and in the Place Vendôme in Paris.

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