Regional population distribution

Many firms market their products in a limited number of geographic regions, or they may market nationally but prepare a separate marketing mix for each region. Supermarket chains such as Alpha Beta and Winn-Dixie concentrate their marketing efforts in specific geographical regions. Even supermarket giants such as Kroger and Safeway are unknown in some parts of the country. Campbell Soup Company has altered some of its soup and bean recipes to suit regional tastes, and General Foods has developed regionally oriented promotional campaigns for Maxwell House coffee.

The regional distribution of population is important to marketers because people within a given region generally tend to share the same values, atti­tudes, and style preferences. However, significant differences do exist among regions because of differences in climate, social customs, and other factors. Thus bright, warm colors are preferred in Florida and the Southwest, while grays and cooler colors predominate in New England and the Midwest. Peo­ple in the West are less formal than Easterners, and they spend more time outdoors. Consequently, in the Western region there is a large market for patio furniture, sports clothes, and barbecue equipment.

Marketing executives should understand existing patterns and projected trends in regional population. Figure 4-2 shows the population distribution in 1990 and its projected growth from 1980 to 2000 by census regions. The big­gest markets are in the East North Central, South Atlantic, and Middle Atlan­tic census regions. These three areas together account for a little over half of the nation's population. However, the greatest rate of population growth over the past four decades has occurred in the "Sun Belt"—the Southern and Western regions. By the year 2000 the three most populous states will be California, Texas, and Florida, in that order

Producers of outdoor furniture typically segment their markets by geographic region.

FIGURE 4-2 Regionaldistribution of population, 1990, andprojected growth, 1980-2000.

The East North Central, South Atlantic, and Middle Atlantic census regions account for the largest part of our total population. However, the Southern and Western regions show a more rapid growth rate. Movement of the population center of the United States is still generally south and westward.

URBAN, SUBURBAN, AND RURAL DISTRIBUTION

Many organizations segment their markets on the basis of city size or urban-suburban-rural distribution. Toys "R" Us, the largest chain of toy stores in the United States, locates its stores only in metropolitan areas with populations exceeding 250,000. Within large cities the company segments further in that it usually places its warehouse-style outlets away from busy shopping centers.

The U.S. farm population has been declining for many years, and this trend is expected to continue. This decline has led some marketing people to undervalue the rural market. Both as a business market for farm equipment and supplies and as a consumer market with increased buying power and growing sophistication, however, the farm market still is big.

Metropolitan Area StructureAs the percentage of people living on farms has declined, so the percentage of people choosing an urban life-style has in­creased. In recognition of the urbanization of the American market, the fed­eral government has established a three-part classification structure of metro­politan areas that serves as an excellent market measurement tool. Together the metropolitan areas included in this breakdown account for about 75 per­cent ofthe nation's population and retail sales. Obviously, for many prod­ucts, these areas are attractive, geographically concentrated target markets. The threecategories are as follows:

• The basic unit is the Metropolitan Statistical Area (MSA),of which there are about 325. An MSAhas anurban population center of at least 50,000 anda total MSApopulation ofat least 100,000. The boundaries of an MSA are drawn aroundcounty lines and may cross state borders. But the coun­ties must be socially and economically integrated, and virtually all employ­ment must be nonagricultural.

Where they eat the least—

If you are looking for a good market segment for bubble gum, stay out of Minne­apolis. Prune juice? Forget Denver. How do you explain the fact that the following metropolitan areas have the lowest per-household consumption of certain prod­ucts?

• Canned spinach: Minneapolis.

• Frozen waffles: Shreveport, La.; Jackson
• Rice: Charleston-Huntington, W. Va.

• Bubble gum: Minneapolis.

• Frozen brussels sprouts: Shreveport; Jackson.

• Frozen corn dogs: Philadelphia.

• Frozen onion rings: Oklahoma City; Tulsa, Okla.

• Frozen Mexican dishes: Scranton, Pa.; Wilkes-Barre, Pa.

• Frozen Italian dishes: Shreveport; Jackson.

• Prune juice: Denver.

• Pasta: Nashville; Knoxville, Tenn.

• Tea bags: Green Bay, Wis.

• Bacon: Syracuse.

• Grits: Green Bay.