Step 6 : Consider fit of possible Positions with Customer Needs and Segment Attractiveness
An important criterion for defining market segments is the difference in the difference in the benefits sought by different customers. Because differences between customer’s ideal point reflect variations in the benefits they seek, a market positioning analysis can simultaneously dentify distinct market segments as well as the perceived positions of different brand. When customers’ ideal points cluster in two or more locations on the product space map, the analyst can consider each cluster a distinct market segment. For analytical purposes,each cluster is represented by a circle that encloses most of the ideal points for that segment; the size of the circle reflects the relative proportion of customers within a particular segment.