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GGR252 M ARKETING G EOGRAPHY R EVIEW N OTES * D. Wang & C. Zhao Last Revised: May, 1st, 2006 Contents 1 Marketing, Geography & Marketing Geography 3 1.1 Urban Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.2 Hierarchies of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.3 Public & Private Sector Perspective . . . . . . . . . . . . . . . . . . . . . 3 1.4 Overview of Retail Market & Retail Supply . . . . . . . . . . . . . . . . 3 2 Spatial Concepts & the Value of Geographical Perspective 3 2.1 Distance Decay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 Gravity Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.3 Intervening Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.4 Range . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.5 Diffusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.6 Demand and Distance: the spatial demand curve . . . . . . . . . . . . . 4 2.7 Accessability and the Value of Location: The Bid-Rent Model (Trade-off Model) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.8 The Hotelling Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.9 Bounding of Spatial Market . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.10 Unifying/Simplifying Assumptions (Role of Models) . . . . . . . . . . 5 3 Trade Area Delimitation Techniques 6 3.1 Normative Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Thiessen Polygon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Converse Breakpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Huff Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Critique of normative approaches . . . . . . . . . . . . . . . . . . . . . . 7 * For spring semester, 2006. Lectured by Prof. Swales 1
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CONTENTS 3.2 Behavioral Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Customer Spotting (Market Penetration) Techniques . . . . . . . . . . . 8 3.3 Relevant Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4 Site Selection Techniques 8 4.1 Seven Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4.2 Concept of Regression . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.3 Site Evaluation Using Multiple Regression . . . . . . . . . . . . . . . . 9 How to Apply Regression Analysis . . . . . . . . . . . . . . . . . . . . . 9 5 The Geography of Demand: The Market 9 6 The Geography of Supply: Retail 11 6.1 The Major Actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6.2 A Typology of Urban Services . . . . . . . . . . . . . . . . . . . . . . . . 11 Typologies of Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Intra-Urban Retail Hierarchies(Structure) . . . . . . . . . . . . . . . . . 12 Diversity of Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . 12 6.3 Retail Concentration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Locational Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 6.4 Retail Chains/Franchises . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Advantage of Retail Chains . . . . . . . . . . . . . . . . . . . . . . . . . 14 Disadvantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 6.5 Re-emergence of non-store retailing . . . . . . . . . . . . . . . . . . . . 15 7 Market Demand Changes and Retail Supply Responses 15 8 Non-Store Retailing 16 8.1 E-retailing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Corporate Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 The end of geography? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 c D. Wang & C.Zhao, 2006 2
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2 SPATIAL CONCEPTS & THE VALUE OF GEOGRAPHICAL PERSPECTIVE 1 Marketing, Geography & Marketing Geography 1.1 Urban Services shopping (retail), wholesaling and warehousing, offices, medical services, public util- ities 1.2 Hierarchies of services Please refer to 6.2 1.3 Public & Private Sector Perspective Public subject to direct public control, usually via a local government 1. primary interest: size of facilities, relative spatial locations and extent of area served 2. centers on the operational implications of the alternative strategies in terms of efficiency with which the service is provided 3. social implications are also considered In brief, public sector serves as much people as possible at minimum level. Private 1. profit-driven 1.4 Overview of Retail Market & Retail Supply 2 Spatial Concepts & the Value of Geographical Perspec- tive Planned very controlled, all planned out e.g. shopping mall Unplanned e.g. retail strip (traditional street) Retail Chain 4+ stores under the same ownership Most money made by retail chain Independent Stores most stores are in this category traditional, family-owned Site physical attribute of a location c D. Wang & C.Zhao, 2006 3
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2 SPATIAL CONCEPTS & THE VALUE OF GEOGRAPHICAL PERSPECTIVE 2.1 Distance Decay With increasing distance from a location, interaction with the location will decrease Friction of Distance
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