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Unformatted text preview: Chapter 11 - Small Business Location: Place and Layout Selection CHAPTER 11: SMALL BUSINESS LOCATION: PLACE AND LAYOUT SELECTION Chapter Summary This chapter concentrates on the place part of the marketing strategy, looking at a number of methods to get the product to the customer both domestically and internationally. Physical locations options for different sorts of business as well as basic facilities considerations are explored. Learning Objectives After studying this chapter, the student should be able to: 1. Recognize the different types of direct marketing and their pros and cons. 2. Master using the Internet as a distribution channel. 3. Learn how to do nondirect distribution. 4. Differentiate the types of international strategies. 5. Identify what factors to consider in selecting your business location. 6. Set up your home-based business location. 7. Know what to look for in evaluating a potential site layout. 8. Understand the pros and cons of buying, building or leasing. Focus on Small Business: Steve Niewulis and Tap It! Niewulis had a good idea a rosin bag attached to the wrist for baseball players but struggled with distribution issues for some time, before becoming successful. Discussion Questions 1. Niewulis original intent was to market to major sports stores, how would you describe the market he finally targeted? Is there a commonality? The sports stores would have had a broader appeal, including amateur, non- school affiliated teams, Little League and other players. Baseball Express has a narrower focus. Niewulis is also getting sales from non-baseball sports not his original target market at all. The one commonality seems to be sports players where sweaty hands makes a difference in performance. 11-1 Chapter 11 - Small Business Location: Place and Layout Selection 2. What other methods could Niewulis use to get this product to his customers? There are a number of possibilities, but he could have used direct mailing, or used direct response advertising in sports magazine effectively. He may have been able to use direct response advertising on sports televisions channels, or an infomercial effectively although those may not have been as cost effective. 3. Would this method have worked as well had the product been something like baked goods? Or mural painting? What methods would work better for these sorts of products? Neither one of those are particularly good catalog sales products (although that may be a differential advantage in and of itself). Baked goods might be better in a stand for a small scale effort, retailing (think bakery) or possible direct business to business selling (selling through a supermarket). Direct response advertising, guerilla marketing, classified or business classified ads, or direct selling to interior design and construction companies may have been more effective for the mural painting firm....
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- Spring '09