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BUSN 499 - Situational Analysis Ferris State University BUSN 499 .

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Example of Segment Drift The Research & Development Department can use the Perceptual Map exercise to plan revision and invention projects that meet customers' shifting size and performance expect... ations. The Marketing Department can use the results during forecasting as they compare competing products and when determining prices (in general, better positioned products can command higher prices). Each segment has a set of circles. The inner fine cut circles have a radius of 2.5 units. They respresent the heart of the segments where demand is strong. In addition, each inner circle has an ideal spot, a location where demand is strongest. The larger outer rough cut circles have a radius of 4.0 units. They represent the outer fringe of the segments where demand is weak. Tables 1 and 2 in the Industry Conditions Report display information about segment drift. Table 1 in the report shows the yearly drift rates for each segment. For example, assume the center of the Traditional segment ends Round 0 (the year before the start of the simulation) with a performance of 5.0 and a size of 15.0, and the yearly drift rate for performance is +0.7 (customers want better performing products) and for size is -0.7 (customers want smaller products). At the end of Round 1 the center of the Traditional segment will have a performance of 5.7 and a size of 14.3. Table 2 in the report displays the segment center locations at the end of each round. [Show More]

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