Market Area Analysis
CACI Marketing Systems
Businesses in a commercial district can attract customers from varying markets. Some businesses may attract local residents, while other businesses will extend their marketing radius to a larger, regional area. Some may attract young, start-up families and others older, conservative consumers.
In any economic development study it is important first to identify an area's primary market segments and then to develop a strategy for maximizing the area's commercial potential. To aid in such an analysis, a market segment study was commissioned from CACI Marketing Systems in Fairfax, Virginia. Using an extensive computerized database for their "ACORN Lifestyles Market Segmentation System," they prepared an Area Profile Report for the East Michigan Avenue vicinity.
For the population living within that radius, the market analysis described the relative percentage of various types of consumer groups. Forty-four distinct consumer groups have been defined by this system, including such categories as "Old Money," "Conspicuous Consumers," "Family Centered Blue Collar," and "Home Oriented Senior Citizens." Based on information from CACI's demographic database, the analysts then compare the population within the defined area defined with the U.S. population as a whole, describing those consumer groups that are most dominant in the area under study.
The analysis also describes thirteen categories of communities, from "Wealthy Metropolitan Communities" to "Older, Depressed Rural Towns." These Community Profiles describe the area under analysis in terms of community types, presenting data on what are the dominant types found.
