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 Structure As 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 of the nation 's population and retail sales. Obviously, for many prod­ucts, these areas are attractive, geographically concentrated target markets. The three categories are as follows:

• The basic unit is the Metropolitan Statistical Area (MSA), of which there are about 325. An MSA has an urban population center of at least 50,000 and a total MSA population of at least 100,000. The boundaries of an MSA are drawn around county 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.