Rose used the 1989 introduction of the Mazda Miata as an example of these marketing research tools in action. Mazda was able to identify a market for “small, inexpensive, reliable, fun-to-drive, two-seater sports car” using attribute space analysis and a conjoint analysis. The company was able to recognize the perceived value, determine the demand, and adjust the price accordingly.
Not all segmentation methods are complex. Rose shared another tool called a Tree Diagram which starts with a broad target market and branches out into small segments or niches. As the diagram branches out, you eventually filter down to a small group of people.