Podcast
Questions and Answers
What is a characteristic of Central Business Districts (CBD) in terms of retail outlets?
What is a characteristic of Central Business Districts (CBD) in terms of retail outlets?
High concentration of retail outlets
What is a disadvantage of locating a pharmacy in a Central Business District (CBD)?
What is a disadvantage of locating a pharmacy in a Central Business District (CBD)?
Traffic congestion, parking problems, and crime
What type of shopping district is typically located on the outskirts of a CBD or in small neighbourhood clusters?
What type of shopping district is typically located on the outskirts of a CBD or in small neighbourhood clusters?
Secondary shopping districts
What is a benefit of planned shopping centres in terms of consumer convenience?
What is a benefit of planned shopping centres in terms of consumer convenience?
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What is a potential disadvantage for pharmacy owners in planned shopping centres?
What is a potential disadvantage for pharmacy owners in planned shopping centres?
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Why is location crucial for the success of a pharmacy?
Why is location crucial for the success of a pharmacy?
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What type of location is often referred to as an 'island' location?
What type of location is often referred to as an 'island' location?
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What is the basic principle of locating a pharmacy?
What is the basic principle of locating a pharmacy?
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What is the advantage of a pharmacy being close to a medical practice?
What is the advantage of a pharmacy being close to a medical practice?
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What is leapfrogging in the context of pharmacy location?
What is leapfrogging in the context of pharmacy location?
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What is a characteristic of an island location for a pharmacy?
What is a characteristic of an island location for a pharmacy?
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How do dispensing doctors affect the pharmacy business?
How do dispensing doctors affect the pharmacy business?
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What is an advantage of an island location for a pharmacy?
What is an advantage of an island location for a pharmacy?
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What is the impact of mall locations on pharmacy sales?
What is the impact of mall locations on pharmacy sales?
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What type of location intercepts patrons on their way to a shopping district or centre?
What type of location intercepts patrons on their way to a shopping district or centre?
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What is the most important patronage motive for pharmacy customers?
What is the most important patronage motive for pharmacy customers?
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What type of location generates business and attracts patrons to shop?
What type of location generates business and attracts patrons to shop?
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What is the significance of geographical classification in pharmacy location analysis?
What is the significance of geographical classification in pharmacy location analysis?
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What is a market, in terms of pharmacy location?
What is a market, in terms of pharmacy location?
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What is a key aspect of the free enterprise system in terms of market analysis?
What is a key aspect of the free enterprise system in terms of market analysis?
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What should be determined before conducting a retail site evaluation?
What should be determined before conducting a retail site evaluation?
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What are the three key ingredients that define a market?
What are the three key ingredients that define a market?
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Study Notes
Location Analysis & Evaluation
- A good location is crucial to the success of a pharmacy, and underestimating its importance can be a major mistake.
Basic Principles of Location
- Locate in or near high population density areas with moderate competition.
Proximity to Medical Practice
- Being close to a medical practice increases the potential for a pharmacy to dispense prescriptions.
- Leapfrogging, where a pharmacy relocates closer to a medical practice, is considered an unethical and unprofessional strategy.
- Consider the target market's viewpoint when evaluating a location.
Impact of Dispensing Doctors
- Dispensing doctors can dominate the prescription market around their location, making proximity to them a potential disadvantage.
Location: Malls
- Pharmacies located in shopping centers tend to generate a lower percentage of their total sales from dispensary services.
Importance of Convenience
- Convenience is a crucial factor in a pharmacy's success, but it can be challenged by various factors.
- Chain store pharmacies invest in market surveys before entering a new market area.
Classification of Locations
Geographical Classification
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Central Business Districts (CBD): found in newer suburban sections of a city, with advantages including lower rental charges and more space for parking and expansion.
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Island Location: a freestanding building in a residential area, often with a pharmacy as the main tenant.
Functional Classification
- Island Location: a single, freestanding building in a residential area, often with a pharmacy as the main tenant.
- Interceptive Location: intercepts patrons on their way to a shopping district or center, often near clinics or shopping centers.
- Generative Location: generates business and attracts patrons, often found in CBDs or small cities.
Market Analysis
- A market is defined as the total actual or potential spending power of a clearly defined group of people for a given commodity.
- A market consists of three key ingredients: market offerings, suppliers, and consumers.
Market Analysis (Cont’d)
- In a free enterprise system, suppliers compete for consumer patronage to make a profit and provide satisfaction.
- Before selecting a trading area, determine consumer density, affluence, and other factors.
Geographical Location
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Central Business Districts (CBD): high concentration of retail outlets and office buildings, with advantages including high traffic flow, but disadvantages including traffic congestion and parking problems.
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Secondary Shopping Districts: located in major outlying retail districts, often with older shopping areas and traditional neighborhood pharmacies.
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Planned Shopping Centres: geographic clusters of retail stores designed to attract consumers in large numbers, with integrated developments and easy access.
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Island Location: a freestanding building in a residential area, often with a pharmacy as the main tenant.
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Description
This quiz assesses the importance of location in the success of a pharmacy, exploring key principles such as proximity to medical practices and population density. It also covers the conventional principles of pharmacy location and its impact on business success.