2.2.1 Positioning

Sensors vary in their dimensions (size) and the speed with which they respond to changes in physical conditions (performance). Combining size and performance creates a product attribute called positioning.

Figure 2.1 The Perceptual Map Used in the Simulation: The perceptual map plots sensor size and performance characteristics.

The Perceptual Map

Positioning is such an important concept that marketers developed a tool to track the position of their products and those of their competitors. This tool is called a perceptual map. Note the perceptual map in Figure 2.1. You will see this map quite often through the course of the simulation. The map measures size on the vertical axis and performance on the horizontal axis.

A Sensor's Position On The Perceptual Map

The arrow in Figure 2.1. points to a location on the perceptual map where a sensor with a performance of 8 and a size of 12 is located; this product is plotted at the point where the 8 and 12 lines intersect.

Tip: Your Research & Development department controls the performance and size, and therefore the positioning of your sensor products.

Market Segment Positions On The Perceptual Map

Each market segment has a different positioning preference. Therefore, each segment demands sensors that are positioned in different parts of the map. Low End customers want slow performing products that are large in size. They want products that fall inside the set of circles to the upper left in Figure 2.2. High End customers want products that are fast performing and small in size. They want products that fall within the set of circles to the lower right.

Over time, customers want products that are smaller and faster. This causes the segments to move or drift a little each month. As the years progress, the drift becomes significant. Figure 2.3 shows the location of the market segments at the end of the first year; Figure 2.4, at the end of the eighth.

Figure 2.2 Beginning Segment Positions: As the years progress, the segments will move or drift apart at different speeds toward the lower right.

Figure 2.3 Segment Positions at the End of Year 1 and the Beginning of Year 2: The segments move each month. The arrows indicate the distance each segment has drifted over a 12 month period.

Figure 2.4 Segment Positions at the End of Year 8: Very little overlap remains.