The establishment a physical place, deciding on the right location, to start up is crucial. Some of the tools that are available to marketers include websites such as claritas.com. According to Mullins & Walker (2010) claritas.com "offer low-cost reports based on census data that show the demographic profile of the population residing within any given radius of a particular street corner or shopping center location in the United States" (p. 185). This is useful in assessing the size and market potential of a market segment defined by a particular trade area. Going a step further, Clarita's PRIZM "classifies all U.S. households into 66 demographically and behaviorally distinct clusters, each of which, in turn, is assigned to one of 14 social groups and 11 life stage groups. Clarita's offers similar datasets for other countries as well" (Mullins & Walker, 2010, p. 185). Tools such as these can prove to be invaluable in setting physical location.
Using tools such as claritas.com and Clarita's PRIZM has helped companies such as Wal-Mart grow and expand, at least in the beginning, at an enormous rate.
According to Serpkenci & Tigert (2006) "Since being founded in 1962 by Sam Walton, Wal-Mart has grown into a global company with more than 1.3 million associates worldwide and nearly 5,000 stores and wholesale clubs across 15 countries" (p. 85). By analyzing the demographics, and in this case, the geodemographics, Wal-Mart has been able to target physical locations and succeed despite the threats of competitors like Target, CVS and Kruger. Utilizing such tools enables marketers to focus in on that particular trade area using newspapers, magazines, even bus stop and park bench advertising to help promote the business.
[...] Digital Space In regards to the digital space, often referred to as the economy”, there are certain advantages to this avenue as well. According to Mullins & Walker (2010) new economy means industries that fuel the development of or participate significantly in electronic commerce and the Internet, develop and market computer hardware and software, and develop or provide any of the growing array of telecommunications services” (p. 374). Organizations can use the new economy to boost sales and expand beyond a specific trade area. [...]
[...] Conclusion Deciding on which medium to use, whether it is a physical place or a digital space or in my opinion, both, has their own unique advantages to each and is ultimately up to the firm to decide. In the end, as point out by Mullins & Walker (2010) “e-consumers and e-businesses aren't so different from traditional buyers and sellers after all. Customers are, by and large, pragmatists” (p. 375). These customers are looking for solutions to their needs and desires and the company who satisfy those needs the best, wins. References Mullins, J. W., Walker, Jr., O. [...]
[...] C. (2010). Marketing management: A strategic decision making approach (7th ed.). Boston: McGraw-Hill Irwin. ISBN: 9780073381169. Serpkenci, R., Tigert, D. (2006). Wal-Mart's new normal is here: is everyone ready to accept the future? International Journal of Retail & Distribution Management, Vol 34 No pp. 85-100, ISSN 09590552 United States Census Bureau (n.d.) Families and Living Arrangements. [...]
[...] According to Mullins & Walker (2010) claritas.com “offer low-cost reports based on census data that show the demographic profile of the population residing within any given radius of a particular street corner or shopping center location in the United States” (p. 185). This is useful in assessing the size and market potential of a market segment defined by a particular trade area. Going a step further, Clarita's PRIZM “classifies all U.S. households into 66 demographically and behaviorally distinct clusters, each of which, in turn, is assigned to one of 14 social groups and 11 life stage groups. Clarita's offers similar datasets for other countries as well” (Mullins & Walker p. [...]
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