Figure 2.2 Beginning Segment Positions: At the beginning of the simulation, segment positions are clustered in the upper left portion of the perceptual map.

Figure 2.3 Segment Positions at the End of Year 4: The overlap between the seg-ments decreases because the Low End and Traditional segments move at slower speeds.

Figure 2.4 Segment Positions at the End of Year 8: The segments have moved to the lower right; very little overlap remains.

Each year, some market segments demand greater improvement than others. Therefore segments drift at different rates. Segments demanding greater improvement will move faster and farther than others. As time goes by, the overlap between the segments diminishes.

Drift rates are published in the Industry Conditions Report. Your drift rates and segment positions might be different.

Market segments will not move faster to catch up with products that are better than customer expectations. Customers will refuse to buy a product positioned outside the circles. Customers are only interested in products that satisfy their needs. This includes being within the circles on the Perceptual Map!

Any two product attributes can be plotted with a perceptual map

Perceptual Maps can be used to plot any two product characteristics. For example, cereal manufacturers could plot nutrition and taste. The dots in the figure below represent sales of breakfast cereals based on ratings of taste and nutrition. There are few sales in the lower-left corner– not many consumers want products that have poor taste and poor nutrition.

As they review product sales, marketers would notice three distinct clusters. The cluster to the upper left indicates a group of customers that is more interested in nutrition than taste. The cluster to the lower right indicates a group that is more interested in taste than nutrition. The cluster to the upper right indicates a group that wants both good taste and good nutrition.

The clusters, or market segments, could then be named “Taste,” “Nutrition” and “Taste/Nutrition.” The simulation uses a similar positioning method to name its market segments.

Your R&D and Marketing Departments have to make sure your products keep up with changing customer preferences. To do this, R&D must reposition products, keeping them within the moving segment circles.

< Previous Page Next Page >