Metropolitan statistical area

A metropolitan statistical area (MSA) is freestanding area with an urban center containing at least 50,000 people and a total MSA population of 100,000 or more. The U.S. CENSUS BUREAU defines and identifies MSAs, which are frequently used by marketers in developing geographic segmentation strategies. Because MSAs are freestanding areas (surrounded by rural areas), they generally contain residents with similar social and economic characteristics. This allows marketers to develop specific marketing strategies for a large, homogeneous, geographically isolated group of consumers. Peoria, Illinois, and Moorhead, Minnesota, are examples of MSAs. In addition to MSAs, the Census Bureau also defines CMSAs, Consolidated Metropolitan Statistical Areas; and PMSAs, Primary Metropolitan Statistical Areas. A CMSA is a major population concentration. The United States has 25 CMSAs, including New York, Los Angeles, and Chicago. A CMSA contains at least two PMSAs, which are urbanized counties or clusters of counties with strong internal social and economic links, and close ties to other urban areas. For example, Nassau and Suffolk Counties are part of New York’s CMSA. Many retail companies use geographic data including MSAs, PMSAs, and CMSAs as a starting point for locating new outlets. For example, a retail discount store like Wal-Mart or Kmart, from past marketing experience, may know that to support a new store, they need at least 50,000 residents within a 10-mile radius with an average annual INCOME of at least $20,000.
See also MARKETING STRATEGY.