National 5 Business Management - Factors Affecting Location Decisions (Place)

In N5 Business Management, Place, one of the 4 Ps of the Marketing Mix, has several factors which will affect where a business will locate.

 

As you can see below the most obvious will be the first 4:

 

Type of Business – some businesses need to be near customers (retail outlets), others need to be near resources (oil rigs)

Finance – sometimes rent or property prices will place a part in where a business will locate.

Footfall – how many people pass by the business is important if you are a retail business.

Competition – often you do not wish to have many competitors nearby or at all. The Ptarmigan restaurant at the top of the Cairngorm mountain is such an example.