Introductory Lesson




  Market Segments

In each segment, customers fall within a set of circles: the fine cut and the rough cut. Customers want products that are inside the fine cut, represented by the inner circles. Only desperate or eccentric customers buy products with performance and size outside the fine cut. Beyond the rough cut, represented by the outer circles, products fail customer specifications entirely -no customer will buy them.

Each fine cut circle has a point where demand is highest. This point is called the ideal spot and it has the highest concentration of buyers.

The high technology segments, High End, Performance and Size, prefer products near the leading edge of their fine cut circles. These customers want the latest technology-sensors that are better performing and/or smaller in size.

Traditional customers prefer products in the exact center of the circle. Low End customers want older technology -they don't want sensors that will require them to change their manufacturing system-therefore their ideal spot is near the upper left edge of the circle.