When setting up a firm, entrepreneurs have to make important decisions regarding the product itself, its price, how the product is promoted and where the product is sold or the distribution process it goes through. This is known as the marketing mix and involves important elements which are hugely influential on whether a product is successful or not. If a business specializes in certain products, it’s very important to make sure that they get the marketing mix right. In order for this to happen, each component of the mix must complement each other. If proper research is not done and the wrong decisions are taken, it could lead to a flawed marketing mix which will in turn lead to an unsuccessful product, which in turn could lead to an unsuccessful period for the business until such time the mistakes are rectified. Location, or place, is a very important part of the marketing mix as it is the means through which the product reaches the customer. If the product cannot be found easily or the outlet is not easily accessible, it will negatively affect the business.
In order to get this particular element right, the business should evaluate what kind of location is suited for the product. For example, if the entrepreneur wants to open up a fashion store, it will have to be in an area that is frequently visited for the purpose of shopping for clothes. If the entrepreneur sets it up in an area that is well known for cars and automobile parts, the business will not be successful as customers visiting the area will be visiting for the purpose of purchasing a completely different range of items. Similarly, if an entrepreneur wants to set up a high-class restaurant, they will have to make sure it is in an area visited by those belonging to the high income group. The restaurant itself will require a fit out which will make it look more high-class and give out a luxurious feel.
In terms of a company providing a service, for example a travel agency, it cannot be set up in an area which consists predominantly of restaurants or clothing stores. It will have to set up in an area where complementary services are offered. When speaking of the appearance of such an establishment, commercial office fitouts will have to be made use of in order to give out a professional atmosphere to suit the nature of work.
In conclusion, it is important to consider location and the appearance of the establishment itself as it plays a huge part in overall business performance.
