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The Ideal Spot in the Segment Circles ldeal Spots offset from segment center So,

ID: 414912 • Letter: T

Question

The Ideal Spot in the Segment Circles ldeal Spots offset from segment center 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. 20 16 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) 14 12 10 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 0 2 10 12 14 1618 20 Perceptual Map Performance Calculating the ldeal 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 'Low End' segment center has a Performance (Pfmn) specification of 3 and a Size specification of 17 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 Low End ideal spot is offset by -0.8 for Pfmn and +0.8 for size Segment Center by Round Traditional Low End High End Performance Size Round 0 Pfmn 2.5 3.0 3.5 4.0 0.8 Size 17.5 17.0 16.5 16.0 + 0.8 Pfmn 7.5 8.4 Size 12.5 11.6 10.7 9.8 Pfmn Pfmn 5.0 5.7 6.4 ize 15.0 14.3 13.6 12.9 0.0 Pfmn 8.0 9.0 10.0 11.0 ize 17.0 16.3 15.6 14.9 ize 12.0 11.0 10.0 9.0 3.7 10.2 5.1 Offset 0.0

Explanation / Answer

Idea spot can be calculated by looking at the table Containing Segment center by round

Example: In High end segment for round 1

pfmn: Segment center + offset = 8.4+1.4 =9.8

size: Segment center + offset = 11.6+ (-1.4) =10.2

this formula is applied to calculate other ideal spots for round 1 and 0 for all 5 segments

The results are as follows:

Traditional Low End High End Performance Size Round pfmn Size pfmn Size pfmn Size pfmn Size pfmn Size 0 5.0 15.0 1.7 18.3 8.9 11.1 9.4 16.0 4.0 10.6 1 5.7 14.3 2.2 17.8 9.8 10.2 10.4 15.3 4.7 9.6
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