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Nielsen PRIZM Segment Narratives DonorScape
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PRIZM is a registered trademark of Claritas LLC The DMA data. are proprietary to The Nielsen Company US LLC Nielsen. a Third Party Licensor and consist of the boundaries of. Nielsen s DMA regions within the United States of America. Other company names and product names are trademarks or. registered trademarks of their respective companies and are. hereby acknowledged, This documentation contains proprietary information of. Claritas Publication disclosure copying or distribution of this. document or any of its contents is prohibited unless consent. has been obtained from Claritas, Some of the data in this document is for illustrative purposes. only and may not contain or reflect the actual data and or. information provided by Claritas to its clients, Copyright 2018 Claritas LLC All rights reserved Confidential. and proprietary,TABLE OF CONTENTS,Introduction to Claritas PRIZM Premier 1. Overview 1,Model Development 2,Statistical Techniques 2.
Data Sources 4,New Assignment Data for Claritas PRIZM Premier 4. Interpreting Claritas PRIZM Premier Demographics 5. Claritas PRIZM Premier Social Groups 5,U1 Urban Uptown 7. U2 Midtown Mix 8,U3 Urban Cores 10,Suburban S 11,S1 Elite Suburbs 12. S2 The Affluentials 13,S3 Middleburbs 15,S4 Inner Suburbs 16. Second City C 18,C1 Second City Society 18,C2 City Centers 19.
C3 Micro City Mix 21,Town Rural T 23,T1 Landed Gentry 23. T2 Country Comfort 24,T3 Middle America 26,T4 Rustic Living 29. Claritas PRIZM PREMIER Lifestage Groups 32,Younger Years Y 34. Y1 Midlife Success 34,Copyright 2018 Claritas LLC All rights reserved i. Y2 Young Achievers 34,Y3 Striving Singles 35,Family Life F 35.
F1 Accumulated Wealth 35,F2 Young Accumulators 36,F3 Mainstream Families 36. F4 Sustaining Families 37,Mature Years M 37,M1 Affluent Empty Nests 37. M2 Conservative Classics 38,M3 Cautious Couples 38. M4 Sustaining Seniors 39, Copyright 2018 Claritas LLC All rights reserved ii. INTRODUCTION TO CLARITAS PRIZM PREMIER, Claritas has remained at the forefront of segmentation development due to our willingness to adapt our data.
modeling techniques to keep pace with the geodemographic data available through the U S Census Bureau and. other sources Improvements created by Claritas in statistical techniques combined with new data sources and. changes instituted by the Census starting in the year 2010 offered Claritas the rare opportunity to build a unique. solution for consumer segmentation The result was the new Claritas PRIZM Premier system which delivers a. more complete picture of household consumption in today s complex marketplace. This document includes a high level overview of the techniques used to create the PRIZM Premier segmentation. system More detailed information about model development segment assignments and Urbanicity can be found. in the Claritas PRIZM Premier Methodology Document. With PRIZM Premier Claritas continues to provide a seamless transition between household level segmentation. and traditional geodemographics by delivering the same segments at all levels Having the ability to downshift. from geodemographic to household level data makes it possible for marketers to move effortlessly from market. planning and media strategy to customer acquisition cross selling and retention while using the same language. to describe their consumers, PRIZM Premier classifies every U S household into one of 68 consumer segments based on the household s. purchasing preferences PRIZM Premier offers a complete set of ancillary databases and links to third party data. allowing marketers to use data outside of their own customer files to pinpoint products and services that their. best customers are most likely to use as well as locate their best customers on the ground PRIZM Premier enables. marketers to create a complete portrait of their customers to better understand find and engage with their best. clients and prospects, The external links of PRIZM Premier allow for company wide integration of a single customer concept Beyond. coding customer records for consumer targeting applications Claritas provides estimates of markets and trade. areas for location analytics and profile databases for behaviors ranging from leisure time preferences to shopping. to eating to favorite magazines and TV shows all of which can help craft ad messaging and media strategy. Components of the PRIZM Premier system can be grouped by the stage of customer analysis as shown in the. following table, CU S TOM E R AN AL Y SI S S T AG E PR IZ M PR EM I ER COM P O N E N T U S E D. Coding customer records Household level coding,Geodemographic coding and or fill in. Comparing coded customer records to Current year segment distributions. trade area s Five year segment distributions, PRIZM Premier Z6 Delivery Point Code segment distributions.
Copyright 2018 Claritas LLC All rights reserved 1, CU S TOM E R AN AL Y SI S S T AG E PR IZ M PR EM I ER COM P O N E N T U S E D. Determining segment characteristics Household Demographic Profiles. for demographics lifestyle media and Neighborhood Demographic Profiles. other behaviors Claritas Technology Behavior Track Profiles. Claritas Financial Product Profiles,Claritas Insurance Product Profiles. Claritas Income Producing Assets Net Worth Profiles. GfK Mediamark Research Inc MRI Profiles,Claritas TV Behavior Profiles. Additional profiles as created by Claritas PRIZM Premier Links Network. Custom surveys or databases,Model Development, PRIZM Premier was developed using Claritas proprietary methodology that allows marketers to seamlessly shift. from ZIP Code level to block group level to ZIP 4 level all the way down to the individual household level all. with the same set of 68 segments This single set of segments affords marketers the benefits of household level. precision in applications such as direct mail while at the same time maintaining the broad market linkages. usability and cost effectiveness of geodemographics for applications such as market sizing and location analysis. Statistical Techniques, In 1980 and 1990 Claritas statisticians rebuilt PRIZM by essentially repeating the same steps they performed when.
Claritas pioneered geodemographic segmentation in 1976 They aggressively analyzed the data isolated key. factors and developed a new clustering system The development of each new system provided an opportunity. to evaluate and implement improvements as they became available but the underlying segmentation technique. was clustering, Since the 1970s the most popular of the clustering techniques has been K means clustering The final number of. clusters desired is specified to the algorithm this is the origin of the K in K means and the algorithm then. partitions the observations into K number of clusters as determined by their location in n dimensional space as. dictated by demographic factors Membership in a cluster is determined by the proximity to the group center or. mean in space hence the origin of the mean in K means. For any type of clustering process to work well the statistician must correctly identify the important dimensions. before implementing the clustering process For marketing purposes obvious drivers are age and income. However appropriate levels for each of these critically important dimensions still need to be chosen For example. does the dimension of income create better differentiation at 35 000 or 50 000 How does choosing between. these two values of the same dimension change the clustering outcome These choices are important because. when the clustering iterations end and yield an answer marketers are left with clusters of households that have. been organized by their proximity to each other by the demographic metrics that were chosen This answer may. or may not be meaningful to the original task of creating groups that differ in their behaviors in large part. because behavior measures were not incorporated into the clustering technique itself. With PRIZM Claritas broke with traditional clustering algorithms to embrace a new technology that yields better. segmentation results PRIZM Premier was created using this same proprietary method called Multivariate Divisive. Copyright 2018 Claritas LLC All rights reserved 2, Partitioning MDP MDP borrows and extends a tree partitioning method that creates the segments based on. demographics that matter most to households behaviors. The most common tree partitioning technique Classification and Regression Trees CART involves a more. modeling oriented process than clustering Described simply statisticians begin with a single behavior they wish. to predict and start with all participating households in a single segment Predictor variables such as income age. or presence of children are analyzed to find the variable and the appropriate value of that variable that divides. the single segment into two that have the greatest difference for that behavior Additional splitting takes place. until all effective splits have been made or the size of the segment created falls below a target threshold. In the example that follows the CART process starts with all of the survey respondents in one segment for the. behavior of interest in this case owning mutual funds Of this particular respondent pool 10 percent report. owning mutual funds Next the CART routine searches for the demographic variable and the value of that. demographic variable that creates the two segments that are most different on the behavior of interest Our. example shows that dividing the first group by an income of 50 000 yields two segments one with mutual fund. use of 3 percent and the second with mutual fund use of 18 percent We can divide the second segment again. with the result that a split based on an age of 45 yields two more segments one with mutual fund use of 12. percent and the other with mutual fund use of 30 percent. If the process stops here we have a segmentation system with three segments one with 3 of its members. owning mutual funds a second with 12 of its members owning mutual funds and the third with 30 of members. owning mutual funds However this resulting segmentation system does not provide useful information about. any other behaviors it s optimized only for owning mutual funds This is one of the limitations of the CART. technique it generates an optimal model for only a single behavior Because PRIZM Premier is a multi purpose. segmentation system optimization across a broader range of behaviors is necessary Claritas made several. modifications to the CART process resulting in the MDP technique for which a patent is pending These. Copyright 2018 Claritas LLC All rights reserved 3, modifications extended the basic CART process to simultaneously optimize across hundreds of distinct behaviors. at once This advancement allowed Claritas to take full advantage of the thousands of behaviors and hundreds of. demographic predictor variables available at different geographic levels including the household level The MDP. process was run hundreds of times with varying sets of behaviors predictor variables and a number of other. parameters to ensure that the resulting segments represent behaviorally important groupings. Data Sources, In addition to a unique statistical technique Claritas employed an unprecedented number of data sources and. data levels in the development of PRIZM Premier Geodemographic data the mainstay of previous segmentation. systems included Census demographics and ZIP 4 level demographics summarized from compiled lists. As with the prior version of PRIZM Claritas once again used household level demographics in the development. process of PRIZM Premier To each of the over 900 000 customer records in the development database already. coded with Census demographics summarized ZIP 4 demographics and custom Claritas measures Claritas. appended a compiled list of household demographics from the Epsilon Targeting TotalSource Plus file The. resulting database was used to design and evaluate systems built with four different sources of data self reported. household compiled list based household ZIP 4 and block group. New Assignment Data for Claritas PRIZM Premier, In addition to the geodemographic and behavioral data that was used in the development of previous versions of.
PRIZM two new inputs were added to the PRIZM Premier model a measure of a household s liquid assets and a. technology score which measures a household s use of technology in their daily activities These two measures. play a key role in determining the PRIZM Premier segment assignment for a household or geography. The first is Claritas Income Producing Assets Indicators a proprietary Claritas model that estimates the liquid. assets of a household based on responses to the Claritas Financial Track survey of financial behaviors Financial. Track is the largest financial survey in the industry collecting actual dollar measures from each survey respondent. From the survey base information for nearly 250 000 households rolling three years of quarterly surveys is. anonymized summarized and used to construct balance information for a variety of financial products and. services that are core to Income Producing Assets IPA No individual respondent survey data is released as part. of the PRIZM Premier model, Strongly correlated to age and income IPA measures liquid wealth such as cash checking accounts savings. products such as savings accounts money market accounts and CDs investment products such as stock and. mutual funds retirement accounts and other asset classes that are relatively easy to redeem and move and for. which marketers can readily compete Note that the asset classifications used in developing PRIZM Premier differ. slightly from those offered in the stand alone Claritas Income Producing Assets Indicators product PRIZM Premier. segments are classified in one of seven IPA categories Millionaires IPA Elite IPA High IPA Above Average IPA. Moderate IPA Below Average IPA and Low IPA, The second new feature introduced with PRIZM Premier is a measure of technology use that identifies the extent. to which a household has embraced technology in their everyday lives A technology model was developed. utilizing more than 100 technology related behaviors from several Claritas and third party surveys These. behaviors included use of specific devices as well as specific activities engaged in by the household across various. Copyright 2018 Claritas LLC All rights reserved 4, devices and channels The technology use of each segment within the new PRIZM Premier system is described in. terms of how the households within the segment scored relative to the average technology score PRIZM Premier. segments are classified in one of five Tech Use categories Highest Tech Above Average Tech Average Tech. Below Average Tech or Lowest Tech to define their use of technology. PRIZM Premier incorporates these IPA indicators and tech scores along with household characteristics such as. income age and family composition and neighborhood characteristics such as housing stock and home. ownership to create 68 segments These segments are numbered according to socioeconomic rank which takes. into account characteristics such as income education occupation and home value and are grouped into 11. Lifestage groups and 14 social groups Social groups are based on urbanicity and socioeconomic rank Lifestage. groups are based on age socioeconomic rank and the presence of children at home. Interpreting Claritas PRIZM Premier Demographics, Claritas provides a series of demographic descriptors used to classify the segments across core dimensions While. demographics form the basis for every segment assignment not every segment falls neatly into only one category. for each demographic Detailed information about the predominant values for each of the demographic. descriptors can be found in the Claritas PRIZM Premier Segment Descriptors Release Notes. CLARITAS PRIZM PREMIER SOCIAL GROUPS, The 14 social groups of Claritas PRIZM Premier are based on Urbanicity class and affluence two important.
variables used in the production of PRIZM Premier First segments are placed in one of four urbanicity class. categories Within each of these categories all the segments are then sorted into groups based on affluence. another powerful demographic predictor of consumer behavior All of the 68 segments are grouped into one of. these 14 social groups At the top of both the affluence and density scales is Social Group U1 Urban Uptown in. which residents live in urban areas and are very affluent At the opposite extreme is Social Group T4 Rustic Living. in which residents live in rural areas with a more downscale lifestyle. Copyright 2018 Claritas LLC All rights reserved 5,Copyright 2018 Claritas LLC All rights reserved 6. Urban U Social Groups have population density centiles mostly between 85 and 99 They. include both the downtown areas of major cities and surrounding neighborhoods. Households in this classification live within the classic high density neighborhoods found in. the heart of America s largest cities While almost always achored by the downtown central. business district these areas often extend beyond the city limits and into surrounding. jurisdictions to encompass most of America s earliest suburban expansions. U1 Urban Uptown, The four segments in Urban Uptown are home to the nation s wealthiest urban consumers Members of this social. group tend to be upscale to wealthy mostly without kids Although this group is diverse in terms of housing styles. residents share an upscale urban perspective that s reflected in their shopping behaviors and activities Urban. Uptown consumers tend to frequent the arts shop at exclusive retailers drive luxury imports travel abroad and. spend heavily on computer and wireless technology,Wealthy Middle Age Mostly w Kids. Young Digerati are tech savvy and live in fashionable neighborhoods on. the urban fringe Affluent and highly educated Young Digerati. communities are typically filled with trendy apartments and condos. fitness clubs and clothing boutiques casual restaurants and all types of. bars from juice to coffee to microbrew Many have chosen to start. families while remaining in an urban environment, Owns an Audi Eats at Starbucks Shops at Bloomingdales Goes hiking backpacking Visits. Asia Uses Uber Listens to Alternative, Age 35 54 Homeowners Millionaires Above Average Tech.
Wealthy Older Mostly without Kids, The residents of Money Brains seem to have it all high incomes. advanced degrees and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who. live in fashionable homes on small manicured lots with expensive cars. in the driveway, Owns a Mercedes Eats at Boston Market Shops at Bloomingdales Attends live theatre. Visits Hawaii Visits AARP Listens to News,Age 55 Homeowners Millionaires IPA Average Tech. Copyright 2018 Claritas LLC All rights reserved 7,Midscale Middle Age Mostly without Kids. American Dreams residents are found in upper middle class. multilingual neighborhoods in urban areas They are heavy grocery and. convenience store shoppers opting to prepare meals at home more. than their urban counterparts in other segments, Owns a Volvo Eats at The Cheesecake Factory Shops at Nordstrom Rack Follows men s.
tennis Flies JetBlue Uses Yelp Listens to News,Age 55 Mostly Owners Moderate IPA Average Tech. Upscale Younger Family Mix, Educated and upscale The Cosmopolitans are urbane couples in. America s fast growing cities Concentrated in major metro areas these. households feature older homeowners A vibrant social scene surrounds. their older homes and apartments and residents love the nightlife and. enjoy leisure intensive lifestyles, Owns a BMW Eats at Starbucks Shops at Crate Barrel Plays tennis Visits Europe. Uses Uber Listens to News, Age 25 44 Homeowners Moderate IPA Below Average Tech. U2 Midtown Mix, Diversity is the hallmark of Midtown Mix a group of mostly younger midscale urban renters It s the most tech.
savvy of the urban social groups and consists of a mix of singles and couples In Midtown Mix the households are. dominated by consumers who pursue active social lives frequenting bars health clubs and restaurants at high. rates listening to progressive music driving small imports and acquiring the latest consumer electronics. Midscale Middle Age Mostly without Kids, Urban Elders a segment located in the downtown neighborhoods of. such metros as New York Chicago Las Vegas and Miami are more likely. to be renters than other households in their age cohort They enjoy the. cultural options available to them in their communities frequently. attending musical performances and other live events. Owns an Audi Eats at Starbucks Shops at Bloomingdales Visit art museums Flies JetBlue. Watches IFC Listens to News, Age 55 Renters Above Average IPA Above Average Tech. Copyright 2018 Claritas LLC All rights reserved 8,Midscale Younger Mostly without Kids. A collection of mobile urbanites Connected Bohemians represent the. nation s most liberal lifestyles Its residents are a progressive mix of tech. savvy young singles couples and families ranging from students to. professionals In their funky row houses and apartments Bohemian. Mixers are the early adopters who are quick to check out the latest. movie nightclub laptop and microbrew, Owns a Volkswagen Eats at Chipotle Shops at H M Attends music concerts Visits the. Middle East Uses Uber Listens to Rhythmic Contemporary Hits. Age 25 44 Renters Moderate IPA Highest Tech,Midscale Middle Age Mostly without Kids.
Urban Achievers are midscale middle aged ethnically diverse. homeowners in urban neighborhoods with established careers and. college degrees They are active participants in their communities and. strong supporters of their local professional sports teams. Owns a Lexus Eats at Quiznos Shops at IKEA Follows pro boxing Visits Las Vegas. Watches Telemundo Listens to Soft Adult Contemporary. Age 55 Mostly Owners Below Average IPA Average Tech. Downscale Older Mostly without Kids, Typically urban renters Aspiring A Listers are focused on their social. lives They are out and about often and spend heavily on status brands. and dining out They are all about convenience shopping most often at. drug stores and convenience stores and have above average. technology use, Owns a Toyota Eats at Jack in the Box Shops at Banana Republic Follows Major League. Soccer MLS Visits Las Vegas Watches Univision Listens to Jazz. Age 55 Renters Low IPA Above Average Tech,Copyright 2018 Claritas LLC All rights reserved 9. U3 Urban Cores, The segments of Urban Cores are characterized by relatively modest incomes education and rental apartments. however affordable housing is part of the allure for the group s young singles and aging retirees Urban Cores is. one of the least affluent social groups and surveys indicate a fondness for both ethnic and mainstream media and. Midscale Middle Age Family Mix, An immigrant gateway community Multi Culti Mosaic is the urban.
home for a mixed populace of Hispanic Asian and African American. singles and families This segment is characterized by many first. generation Americans who are striving to improve their economic. Owns a Dodge Eats at Little Caesars Shops at Foot Locker Follows Mexican league soccer. Visits Mexico Watches Univision Listens to Urban Adult Contemporary. Age 55 Mix Above Average IPA Average Tech,Upscale Younger Family Mix. Found in urban neighborhoods City Roots is a segment of middle class. mainly white collar workers typically living in older homes they ve. owned for years In these ethnically diverse neighborhoods residents. are working hard avid soccer fans and enjoy traveling to Central and. South America, Owns a Nissan Eats at Popeyes Shops at H M Follows Major League Soccer MLS. Visits Central South America Watches Telemundo Listens to Rhythmic Contemporary Hits. Age 25 44 Mostly Owners Elite IPA Average Tech,Midscale Middle Age Mostly without Kids. In Urban Modern Mix middle class singles and couples reside in. ethnically diverse neighborhoods in or near the city center Despite only. average overall technology use they are frequent online shoppers for. everything from jeans to groceries, Owns a Kia Eats at White Castle Shops at Burlington Follows pro boxing Visits casinos. Watches TV One Listens to Urban Adult Contemporary. Age 55 Mix Low IPA Average Tech, Copyright 2018 Claritas LLC All rights reserved 10.
Midscale Middle Age Family Mix, Multi Culti Families are middle age urban households with moderate. means Often bilingual they enjoy a wide variety of media and are. average in their overall use of technology, Owns a Nissan Eats at Jack in the Box Shops at Ross Dress For Less Follows Mexican. league soccer Visits Mexico Watches UniMas Listens to Rhythmic Contemporary Hits. Age 55 Mix Above Average IPA Average Tech,Lower Mid Scale Middle Age Mostly without Kids. The most economically challenged urban segment Low Rise Living is. home to mostly middle aged ethnically diverse singles and single. parents Unlike their low income peers they rank above average in their. use of technology perhaps influenced by their urban fast paced. environment, Owns a Honda Eats at Boston Market Shops at H M Follows pro boxing Flies JetBlue. Watches UniMas Listens to Rhythmic Contemporary Hits. Age 55 Renters Below Average IPA Above Average Tech. Suburban S, Suburban S areas have population density centiles between 40 and 90 and are clearly.
dependent on urban areas or second cities Unlike Second Cities they are not the. population center of their surrounding community but rather a continuation of the density. decline as you move out from the city center While some Suburbs may be employment. centers their lifestyles and commuting patters will be more tied to Urban or Second City. Copyright 2018 Claritas LLC All rights reserved 11.


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