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Friday, July 17, 2015

Location, Location, Location: Is it a Marketing Myth?

Question: What are the factors for success of a shop?
Answer: Three factors: Location, Location, Location
This is the standard answer for every marketing student. But is it true in Today's environment?
Wal Mart was the company that broke this myth. They located their stores far off from the costly places and people flocked to their stores. They changed the answer to this question. Now the new answer was
"Three factors: Price, Price, Price."
or say "Cheap, Cheap, Cheap."
Today in Indian Metros, the commercial real estate has gone so costly that the prices of goods sold in the malls sometime have a 30% component (my guesstimate) of real estate. This is one significant factor which is giving push to e-commerce.