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Consider the map of the Waupaca, Wisconsin (example map above).The map shows the <br /> location of Waupaca along with surrounding communities.The populations of each of these <br /> towns and cities are provided below the community name. Based on community populations <br /> and their distribution,you can draw a simple trade area (shown by the red line) using the <br /> concepts of Reilly's Law. <br /> For instance, residents of Amherst or Nelsonville live closer to Stevens Point than Waupaca. <br /> Furthermore,the Stevens Point area is larger in population.Therefore people living in these <br /> communities will more likely travel to Stevens Point than Waupaca. In contrast, residents of <br /> Ogdensburg are closer to Waupaca and will most likely shop accordingly. From such <br /> observations you can estimate the entire trade area. <br /> While theoretical, using Reilly's Law provides a general sense of the community's trade area as a <br /> whole.This method requires little effort and few resources. However, Reilly's Law does not <br /> capture possible variations in the trade area.Additionally, Reilly's Law is less appropriate if you <br /> are defining both convenience and destination shopping trade areas. There are ways to <br /> overcome these deficiencies, however, including one based on actual customer data discussed <br /> in the later in this section. <br /> Return to top <br /> 4 <br />