This is a relatively simple statistical procedure which can be done with the Analyst's Pack for Microsoft Excel or through the use of SAS or SPSS as well.
The final step is to draw a map by plotting the position of every product in the market you've selected by its price on one access and level of primary benefit on the other. Drawing a line between these coordinates defines the segmentation graphically and provides insight into how one series of products compare to another.
Implications
As with most graphically oriented analytical approaches to defining differentiation, this cannot be used in isolation; it must be included as part of a broader set of analyses to measure the relative strengths and weaknesses of specific products and segment. The level of profitability and profit potential, (sometimes called profit pools) is also not specifically...
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