On the perceptual map, the circles represent the market segments (groups of customers with similar purchasing concerns). Products that plot within 4.0 units from the center of the segment circle are inside of the dashed lines (Figure 5.1). These products survive the positioning rough cut for that segment.

Figure 5.1 Positioning Rough Cut / Fine Cut Circles: The outer rough cut circle has a radius of 4 units. The inner fine cut circle has a radius of 2.5 units.

Products placed more than 4.0 units away from the center of the segment are outside of the dashed lines.

These products fail the segment’s rough cut and are not considered for purchase.

Tip: The location of each segment’s rough cut circle as of December 31 of the previous year appears on page 11 of The Capstone® Courier.