The Ideal Spot in the Segment Circles So, where should you try to position your

Question

The Ideal Spot in the Segment Circles So, where should you try to position your product in the segment circles? As a basic rule, the 'Ideal Spot' will help guide you. The ideal spot represents the position with the highest point of demand for each consumer base – or segment. The ideal spot is made up by the product’s performance (speed) and size. As the perceptual map drifts down and to the right each year, the ideal spot will change as customers demand sensors with decreased size (smaller) and increased performance (faster). Although it would seem that the Ideal Spot would be in the center of the segment circle, the positioning actually varies due to the customer focus of each segment. For example, in the High End segment, the Ideal Spot is at the leading edge of the segment because those customers want the best possible product. Each segment’s ideal spot is represented by the pink dots on the Perceptual Map. Ideal Spots offset from segment center

Calculating the Ideal Spot

To calculate where the ideal spot is in each round, start with the segment center in the table below and then adjust for the offset. These offsets represent the distance from the center of the segment to the ideal spot. The activity practices how to calculate the Ideal Spot using information in the Industry Conditions report.

Looking at the table below for Round 1, the 'High Tech' segment center has a Performance (Pfmn) specification of 6.7 and a Size specification of 13.3.

Now we look at the bottom of the table to see how much the ideal spot is offset from the center of the segment, and we see that the High Tech ideal spot is offset by +1.4 for Pfmn and -1.4 for size.

Segment Center by Round Low Tech High Tech Pfmn 4.8 5.3 5.8 6.3 0.0 Size 15.2 14.7 14.2 13.7 0.0 Pfmn 6.0 6.7 7.4 Size 14.0 13.3 12.6 11.9 Round 0 2 3 Offset So, we can calculate that the Round 1 ideal spot for my product in the High Tech segment is: Center Offset Ideal Spot 6.7 13.3 =8.1 Pfmn Size: = 11.9

Explanation / Answer

The offset for Low Tech is 0 so the values will be the same

High Tech segment

Round 0:

Round 2:

Round 3:

Center Offset Ideal spot Pfmn 6.0 +1.4 7.4 Size 14.0 -1.4 12.6

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