Figure 3.1 Positioning Scores: The outer edge of the orange rough cut measures 4.0 units from the center of the circle; the edge of the green fi ne cut measures 2.5 units from the center. Segment ideal spots are represented by the black dots. The example on the left displays a positioning score for a segment that prefers products with slower performance and larger size. The example on the right displays a score for a segment that demands cutting edge products with high performance and small size. The orange areas represent the segment rough cuts, where scores rapidly decrease towards zero.

Positioning Fine Cut

Products inside the fine cut (green areas, Figure 3.1,) are within 2.5 units of the center of the circle. Ideal spots for each segment are illustrated by the black dots. The example on the left illustrates a segment that prefers proven, inexpensive technology. The ideal spot is to the upper left of the segment center, where material costs are lower. The example on the right illustrates a segment that prefers cutting-edge technology. The ideal spot is to the lower right of the segment center, where material costs are higher (see Figure 4.1 for an illustration of material positioning costs).

Participants often ask, “Why are some ideal spots ahead of the segment centers?” The segments are moving. From a customer’s perspective, if they buy a product at the ideal spot, it will still be a cutting edge product when it wears out. For contrast, if they buy a product at the trailing edge, it will not be inside the segment when it wears out.

A product’s positioning score changes each month because segments and ideal spots drift a little each month. Placing a product in the path of the ideal spot will return the greatest benefit through the course of a year.

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