Summary
This short essay speaks from my perspective of the determination of the commercial flows of consumers, whose objective is to show the usefulness of the application of Commercial Gravitation Models for the determination of market areas, in this case of commercial areas and subareas. To do this, I share with you these models (Reilly and Huff) applied to two real cases, which also show the important applications that derive from the knowledge and updating of the commercial flows of consumers.
Introduction
The Market Areas are geographical areas of influence of a commercial establishment, traditional store, supermarket, shopping center. or a group of commercial establishments (the case of a municipality, considered as the sum of the total commercial equipment existing within it). A market area could, therefore, range from a set of streets or districts of a city, to a larger geographic extension that includes a set of municipalities of a province or autonomous community.
The market areas, for this moment are present in my mind and in this essay from the perspective of the market research area and not solely and exclusively from the marketing or business area.
Development
For me it is essential to understand the definitions involved in this topic, so I have spent time searching for some definitions such as:
Concept of commercial areas. The commercial area can be defined as «a geographical space whose population is directed, with a strong preponderance, to an important locality in the aforementioned space for the purchase of articles of non-current use.
Commercial areas. It is a function of the highest order, since it is directly responsible for customer relations and the achievement of sales objectives that are the main source of income for companies.
Next I return to “click the source” Under the title “Reilly models-:
Reilly's model
This Reilly model expresses that the sales that two localities ("a" and "b") attract from an intermediate location are directly proportional to their populations and inversely proportional to the square of the distances between the intermediate location and the two locations considered.
In this model the variable «distance in km» is usually substituted. by the variable "travel time" when a town or municipality located between "a" and "b" is connected by roads of different categories (for example, a normal road and a highway) with one and the other head of area or sub area.
I believe as a novice on the subject that the reilly model, it has been indicated that in this model the variable "sales area" can be considered
The other model that I intend to share with you is from Albadalejo Pina.
Huff model
The Huff Model expresses the attraction exerted by the commercial equipment of a certain leading locality of area or sub-area «j» on the average consumer of a locality or municipality ”.
This model can also be applied for a specific shopping center in concurrence with several other shopping centers, not only for municipalities, where P would be the probability that a consumer «i» goes to a shopping center «j». Actually, in Huff's original model, "P ij" is the probability that an individual consumer "i".
it moves to a commercial establishment «j» (not to the total commercial equipment of a municipality), being, therefore, «n» equal to the number of commercial establishments considered.
By the consumer as other possible shopping centers of attraction, in addition to the shopping center "j" instead of the number of municipalities considered.
I believe as a novice on the subject that the “HuFF” model expresses the attraction that the commercial equipment of a certain locality exerts on the average consumer of a locality or municipality ”.
In general, my personal comment is that the market areas thus considered, unlike the common political-administrative divisions, municipality, province, region, autonomous community, have a meaning and a very important socioeconomic homogeneity, which helps both to companies, as well as to public administrations in their planning and organization activities of the territory.
conclusion
Knowledge of the market areas of a shopping center, bank, or other in order, is important for planning the expansion of new branches or establishments among others, there are other models, which perhaps for you dear reader are more understandable or related to your line of business as well as at the points of sale, it helps in your commercial and marketing policies.
I share with you this little phrase about shopping centers:
"Shopping and recreational centers are events that generate change in the organization of urban spaces."
Sources consulted
- (ALBADALEJO PINA, P. (1995), “Five Methodological Lines for the delimitation of Market Areas.” Magazine “Estudios de Economía Aplicada”, Asepelt Spain, nº 4, Dec. 1995, pp.5-27.) Commercial Atlas de España, 1963.CHASCO LAFUENTE, P. (1988), «Models of Location of Shopping Centers». ALBADALEJO PINA, P. (1995), "Five Methodological Lines for the limitation of market areas". Magazine “Studies of Applied Economy”, Asepelt Spain, nº 4, December 1995, pp. 5-27.Article taken from the Journal Perspectiva Geográfica No. 3.
