Trading Area Analysis Example

How to use trade area in a sentence. A population increase or decline within a geographic region will have a direct impact on the. How big a retail trade area is for example depends on the range of goods and services offered in the community and how close they are to competing retail markets.

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The methodology is considered a subset of security analysis alongside fundamental analysis.

Trading area analysis example. Trade area analysis provides the foundation for. A trade area analysis should be conducted on a regular basis and should take into account a number of factors. Understanding the geographic extent and characteristics of store patronage. For example if you are defining a trade area for a small community surrounded by similarly sized communities that are all spaced 20 miles from one another a simple ring of 10 miles may be a reasonable trade area for analysis.

For example trading area analysis reveals that people from trans river hesitate to come to city shopping areas due to pickpockets and thieves in evening. A strategic approach 9th edition berman evans. Chapter 9 trading area analysis retail management. Key trade area factors.

Essentially trade area analysis is a methodology process or technique that provides a basis for understanding visualizing and quantifying the extent and characteristics of known or approximated trade areas. Trade area definition is a geographic area within which a business enterprise or center of retail or wholesale distribution draws most of its business. The trade area boundary is formed by measuring the travel time or distance that most customers travel to reach the store. 3 gis software trading area zsize and shape are dependent on.

A trade area is the furthest distance that consumers are willing to travel to buy goods and services. In general the larger the population base the larger the given trade area will be. In this case trade areas of stores may overlap. Further comprehensive study reveals the fact that this is because of improper lighting arrangements and absence of police personnel.

Zsize of store zneighboring stores ztransportation network zpopulation density zphysical social and political barriers zlocation of competition zmerchandise uniqueness low prices superior service marketing strategies trading areas zprimary z50 80 of customers less than 10 min zsecondary z15 25 of customers less than 20 min. Here we look at how to use technical analysis in day trading. Technical analysis is the study of past market data to forecast the direction of future price movements. This would not be a good way to determine trade areas for assigning leads since some customers and prospects fall into more than one trade area.

The term trade area is often interchangeable with trading area.