MARKETING-LOCATION ANALYSIS 1. Mr. Fox wants to know whether he should spend $40,000 annually to advertise in the Anthony newspaper in order to attract shoppers to his store in Las Cruces. He is concerned that Anthony shoppers may prefer El Paso for their shopping. Anthony shoppers' propensity to travel to shop is 2.0. If retail expenditures in Anthony are $3.0 million and twenty-five percent of this total is spent within Anthony, what do you recommend to Mr. Fox. (Mr. Fox captures sixty percent of out-of-town retail expenditures in Las Cruces.) a. What is the total amount of sales Mr. Fox should expect to receive from Anthony? b. Do you advertise? Justify your answer. 2. Consider the following: Market Areas Criteria c Population Retail Expenditure (per capita) Stores (Square footage-Retail) 40,000 $10 10,000 50,000 $12 12,000 7,000 $10 15,000 You want to know which community is best suited to locate a 1,000 square foot store. Your breakeven sales are $38.00 per square foot. 3. Two communities are located on the same highway fifty miles apart. Community A has a population of 45,000 and Community B's population is 15,000. The distance from your home to Community A is forty miles and to Community B the distance is ten miles. Given these facts, you are living within the primary trade area of which of the two communities. The primary trade area of a community includes that area within which the probability of purchase is greater than fifty percent. MARKETING-LOCATION ANALYSIS 1. Mr. Fox wants to know whether he should spend $40,000 annually to advertise in the Anthony newspaper in order to attract shoppers to his store in Las Cruces. He is concerned that Anthony shoppers may prefer El Paso for their shopping. Anthony shoppers' propensity to travel to shop is 2.0. If retail expenditures in Anthony are $3.0 million and twenty-five percent of this total is spent within Anthony, what do you recommend to Mr. Fox. (Mr. Fox captures sixty percent of out-of-town retail expenditures in Las Cruces.) a. What is the total amount of sales Mr. Fox should expect to receive from Anthony? b. Do you advertise? Justify your answer. 2. Consider the following: Market Areas Criteria c Population Retail Expenditure (per capita) Stores (Square footage-Retail) 40,000 $10 10,000 50,000 $12 12,000 7,000 $10 15,000 You want to know which community is best suited to locate a 1,000 square foot store. Your breakeven sales are $38.00 per square foot. 3. Two communities are located on the same highway fifty miles apart. Community A has a population of 45,000 and Community B's population is 15,000. The distance from your home to Community A is forty miles and to Community B the distance is ten miles. Given these facts, you are living within the primary trade area of which of the two communities. The primary trade area of a community includes that area within which the probability of purchase is greater than fifty percent