Figure 2.1 The Perceptual Map Used in the Simulation: The Perceptual Map plots product size and performance characteristics.
The map measures size on the vertical axis and performance on the horizontal axis. Each axis extends from 0 to 20 units. The arrow in Figure 2.1 points to a product called Able with a performance measurement of 8.0 and a size of 12.0.
2.1.5 Market Segment Positions on the Perceptual Map
Market segments have different positioning preferences. The Low End segment is satisfied with inexpensive products that are large in size and slow performing. It wants products that fall inside the upper-left set of dashed and solid circles in Figure 2.2The High End segment wants products that are faster performing and smaller in size. It wants products that fall within the lower-right set of dashed and solid circles.
Over time, your customers expect products that are smaller and faster. This causes the segments to move or drift a little each month. As the years progress the locations of the circles significantly change. The example in Figure 2.3 shows the location of the market segments at the end of the fourth year. Figure 2.4 shows the segments at the end of the eighth year.
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. This animationdemonstrates segment drift over eight years. 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!