What is Site Selection Analysis?
- Content Type:
- Glossary
Site selection analysis Definition
Determining, through an analysis of a given area's demographic and economic characteristics, whether it offers a good market for a product or service.
Site selection analysis is a process used in market research to identify optimal locations for businesses, retail outlets or facilities. It involves evaluating various factors such as demographics, consumer behavior, competition, accessibility and local economic conditions to make informed decisions about where to establish a presence.
Who relies on site selection analysis in market research?
Businesses, retailers, franchise owners and real estate developers rely on site selection analysis. They use this approach to strategically position their operations for maximum customer reach and profitability. Market researchers and location analysts are also involved in conducting these assessments.
Why should I care about site selection analysis in market research?
Understanding site selection analysis is crucial if you're involved in business development, expansion or real estate. It helps you identify the best locations to set up shop, ensuring that your offerings align with local consumer preferences and market conditions, ultimately leading to higher success rates.
Why is site selection analysis important in market research?
- Site selection analysis allows you to make informed decisions based on data rather than assumptions.
- It helps you mitigate risks associated with choosing suboptimal locations and supports long-term business growth.
- By leveraging this analysis, you can position your business in areas where it's most likely to thrive and cater to the needs of your target audience.