Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Demographic
Dimensions of Global
Consumer Markets
Text © The McGraw−Hill
Companies, 2002142 Chapter 5
Single-adult householdsare also on the rise and they account for over one-fourth
of all households—almost 27 million people! These include young adults who leave
home when they finish school, as well as separated, divorced, or widowed people
who live alone. In some big cities, the percentage of single-person households is
even higher—around 30 percent in New York and Washington, D.C. These peo-
ple need smaller apartments, smaller cars, smaller food packages, and, in some cases,
less-expensive household furnishings because many singles don’t have much money.
Other singles have ample discretionary income and are attractive markets for top-
of-the-line clothing, expensive electronic gadgets, status cars, travel, nice
restaurants, and trendy bars.^13Migration from rural to urban areas has been continuous in the U.S. since 1800.
In 1920, about half the population lived in rural areas. By 1950, the number living
on farms dropped to 15 percent—and now it is less than 2 percent. We have become
an urban and suburban society.^14
Since World War II, there has been a continuous flight to the suburbs by mid-
dle-income consumers. By 1970, more people lived in the suburbs than in the
central cities. Retailers moved too—following their customers. Lower-income con-
sumers—often with varied ethnic backgrounds—moved in, changing the nature of
markets in the center of the city.
Industries too have been fleeing the cities, moving many jobs closer to the
suburbs. Today’s urban economic system is not as dependent on central cities. A
growing population must go somewhere—and the suburbs can combine pleasant
neighborhoods with easy transportation to higher-paying jobs nearby or in the
city.
Purchase patterns are different in the suburbs. For example, a big city resident
may not need or own a car. But with no mass transportation, living carless in the
suburbs is difficult. And in some areas, it almost seems that an SUV or a minivan—
to carpool kids and haul lawn supplies or pets—is a necessity.These continuing shifts—to and from urban and suburban areas—mean that the
usual practice of reporting population by city and county boundaries can result in
misleading descriptions of markets. Marketers are more interested in the size of
homogeneous marketingareas than in the number of people within political bound-
aries. To meet this need, the U.S. Census Bureau has developed a separate
population classification based on metropolitan statistical areas. Much data is
reported on the characteristics of people in these areas. The technical definition of
these areas has changed over time. But basically a Metropolitan Statistical Area
(MSA)is an integrated economic and social unit with a large population nucleus.
Generally, an MSA centers on one city or urbanized area of 50,000 or more inhab-
itants and includes bordering urban areas.
The largest MSAs—basically those with a population of more than a million—
are called Consolidated Metropolitan Statistical Areas. Over three-fourths of all
Americans live in MSAs and almost 40 percent live in the 18 largest CMSAs. More
detailed data is available for areas within these sprawling, giant urban areas.Some national marketers sell only in these metro areas because of their large,
concentrated populations. They know that having so many customers packed into
a small area can simplify the marketing effort. They can use fewer middlemen and
still offer products conveniently. One or two local advertising media—a city news-
paper or TV station—can reach most residents. If a sales force is needed, it will
incur less travel time and expense because people are closer together.
Metro areas are also attractive markets because they offer greater sales potential
than their large population alone suggests. Consumers in these areas have moreThe shift to urban and
suburban areas
Local political
boundaries don’t
define market areas
Big targets are
attractive—but very
competitive