Proximity to the market, labour, materials and competitors - Business location - OCR - GCSE Business Revision - OCR - BBC Bitesize (2024)

FAQs

What is the proximity of the location to the market? ›

Proximity to market is a term that refers to the physical distance between a business and its target market. It is a crucial factor in choosing a business location, as being situated near target customers significantly impacts the business's performance.

Being close to competition means these businesses are more likely to be considered by people making a purchase. Being far away from each other could limit sales for such businesses.

It also allows supplies to be brought in from far afield and permits finished products to be moved to market cheaply and quickly. The impact of location depends on the type of business. For example, it is important for shops and restaurants to be conveniently located for customers.

Proximity to labour

Availability of qualified and skilled workers in the area. Locating where there is a high concentration of skilled labour gives access to the necessary workforce to run business operations efficiently.

Proximity to the target market significantly influences location decisions as it impacts logistics, customer accessibility, and operational costs. The location of a business can greatly affect its success, and one of the key factors to consider is the proximity to the target market.

Proximity-based marketing is also known as hyper local marketing. That's because it's a highly targeted form of marketing that lets businesses show promotions to consumers within a small, local area. For example, marketers can target a neighborhood, a city block, a store, or specific areas within a store.

Business proximity means how close treasury is to the business. Some treasuries operate like internal banks; in other words they are largely at arm's length from the operational business, providing financial services to them in ways that are more cost effective and/or more convenient than what banks offer.

Proximity marketing allows marketers to target a customer at the right place at the right time with highly personalized content. Sending customers messages based on their proximity to a location allows marketers to send relevant content to the customer, increasing the likelihood of converting them.

Companies may also take advantage of reduced labor costs due to the potential to employ local personnel who might be ready to accept lower wages than those from abroad. Furthermore, it eliminates the risk of exchange rate fluctuations which can increase production costs if finished goods are imported from abroad.

Definition: Location is a geographical area where businesses may be found whilst the site is a specific place within a geographical area. Factors to consider when deciding where to locate a. business: • Cost. • Availability of shop.

Why is business location important in business? ›

In conclusion, a good location is essential for the growth and success of your business. The ideal business location should provide the least risk, low operational costs, a big market presence, and less competition. It should also provide your business with advantages to help achieve your business goals.

The availability of raw materials

How much this matters to a firm depends on what type of industry the firm operates in. For manufacturing firms, like the London Brick Co., being close to raw materials like clay deposits (used to make bricks) can cut the cost of transporting raw materials.

Proximity refers to the closeness or nearness of one location to another. It is often used to measure distance in terms of physical space or time.

Proximity to a place or person is the fact of being near to them. The town's proximity to the city means the houses there are quite expensive.

Proximity simply means that the parties must be 'sufficiently close' so that it is 'reasonably foreseeable' that one party's negligence would cause loss or damage to the other. Fairness means that it is 'fair, just and reasonable' for one party to owe the duty to another.

the state of being near in space or time: The best thing about the location of the house is its proximity to the town centre. Synonyms. closeness (NEAR)

Proximity marketing is a form of marketing that uses an individual's geographic location to deliver personalised messages and promotions. This strategy relies on location technologies, such as GPS and Bluetooth, to identify a user's location and send relevant information in real time.

Proximity marketing is a type of marketing that involves targeting consumers based on their location. This can be done using various methods (such as GPS, Bluetooth, and NFC), though Wi-Fi is usually the standard choice.