Perceptual mapping is the visual representation of consumer perceptions of brands, products, services, and organizations as a whole. Indeed, perceptual mapping asks consumers to place competing products relative to one another on a graph to assess how they perform with respect to each other in terms of perception.
| Element | Description |
|---|---|
| Concept Overview | Perceptual mapping, also known as positioning mapping, is a visual representation of how consumers perceive and position different products, brands, or concepts relative to each other in a multidimensional space. It helps businesses understand market dynamics and make strategic decisions. |
| Key Elements | The key elements of perceptual mapping include:1. Attributes: The specific product or brand features that consumers consider important.2. Dimensions: The criteria or variables used to create the map.3. Data Collection: Gathering information through surveys, interviews, or other methods.4. Mapping: Plotting products or brands on a graph based on consumer perceptions.5. Interpretation: Analyzing the map to draw insights and make decisions. |
| Attributes | Attributes refer to the characteristics, features, or qualities of products or brands that consumers evaluate and compare when forming perceptions. These can include price, quality, taste, size, color, and more, depending on the context. |
| Dimensions | Dimensions represent the criteria or variables used to create the perceptual map. They define the axes of the map and can be tangible attributes (e.g., size, price) or intangible factors (e.g., luxury, eco-friendliness) that influence consumer perceptions. |
| Data Collection | Data collection involves gathering information from consumers through surveys, interviews, focus groups, or online reviews. This data provides insights into how consumers perceive different products or brands and what attributes matter to them. |
| Mapping | Mapping is the process of plotting products, brands, or concepts on a graph or chart based on consumer perceptions and the selected dimensions. This visual representation allows businesses to see the relative positions of entities in the market. |
| Interpretation | Interpretation entails analyzing the perceptual map to draw meaningful insights. This analysis helps businesses identify market opportunities, competitive positioning, consumer preferences, and areas for strategic improvement or differentiation. |
| Applications | Perceptual mapping is widely used in marketing and product development to:1. Identify Market Gaps: Find unexplored niches or gaps in the market.2. Competitive Analysis: Assess how products or brands compare to competitors.3. Product Positioning: Determine how to position a product or brand effectively.4. Brand Management: Evaluate and enhance brand perception.5. New Product Development: Inform product features based on consumer preferences. |
| Benefits | – Provides a visual representation of consumer perceptions.- Helps identify market opportunities and gaps.- Informs strategic decisions on product positioning.- Supports brand management and differentiation.- Enhances marketing and advertising strategies. |
| Drawbacks | – Relies on consumer perceptions, which can be subjective.- Requires accurate data collection and analysis.- Simplifies complex market dynamics.- May not capture all factors influencing consumer choices.- Results can vary based on sample size and demographics. |
Understanding perceptual mapping
For businesses, a clear understanding of how they are perceived by consumers is crucial to their success.
So too is the perception of a business relative to its main competitors.
These insights help businesses understand their target consumers and create useful products accordingly.
These insights can also extend to identifying gaps in the market and staying ahead of market trends.
Perceptual mapping asks consumers to place competing products relative to one another on a graph. Examples of metrics that may be analyzed include:
- Price vs quality.
- Price vs functionality.
- Tastiness vs health rating.
- Safety vs price.
- Performance vs price.
Creating a perceptual map
Most perceptual maps are two-dimensional charts displaying two axes – with each axis serving as a scale from low to high and representing one metric.
Let’s assume for this example that the two metrics being analyzed are price and quality.
Once the metrics have been determined, the following steps include:
- Brainstorming a list of products in a market. This allows businesses to identify the most common products and avoids bias.
- Placing each product on the map according to its price and quality values. In other words, a low quality, low price product will occupy a vastly different position than a higher quality, higher-priced product.
- Having marketers prepare a report on the outcomes to share with relevant stakeholders. Ideally, some products and companies will be judged on various attributes over multiple conceptual maps. This gives a more comprehensive view of the market and is of particular importance in highly fluid and dynamic market environments.
Perceptual mapping using qualitative and quantitative data
Perceptual maps may represent either qualitative or quantitative data, with each serving a different purpose.
Qualitative
Qualitative performance maps illustrate consumer perceptions of a brand, product, or service.
Indeed, the attributes chosen for appraisal must come directly from individuals in the form of interviews and surveys.
If, for example, WordPress customers were interviewed about the attributes they valued most, they might consider user-friendliness and support to be the most important.
A map could then be created to show how WordPress is positioned for these attributes when compared to main competitors Squarespace and Weebly.
Quantitative
Quantitative performance mapping deals with objective and measurable statistics.
Here, attributes are based on empirical evidence and not on the subjective thoughts, feelings, and emotions seen in qualitative research.
Consider the example of a gas station trying to increase market share. It might determine that in-store discretionary purchase amount and average distribution cost per gallon are important competitive metrics.
In both qualitative and quantitative analyses, the business must understand the why of its positioning on the map.
A business that ranks highly in certain attributes should double down on the strategies that got it there.
Conversely, a business that ranks lowly should devise a strategy for improvement by looking at the strategies of relevant competitors.
Perceptual mapping examples
Let’s take this opportunity to list some of the varied ways perceptual maps can be used in real-world situations.
The Coca-Cola Company
Suppose a marketing team within The Coca-Cola company wanted to use perceptual mapping to become better acquainted with the beverage market and some of the main competitors.
In the first analysis, the team assesses the metrics of beverage fruitiness against beverage energy content:
- High fruitiness/high energy – sports drinks, juices.
- High fruitiness/low energy – some soft drinks, flavored mineral waters.
- Low fruitiness/high energy – energy drinks, cola drinks.
- Low fruitiness/low energy – bottled water.
For a more complete overview of the market, the team then created another perceptual map to analyze the main competitors of cola beverages according to their sugar content and how traditional they are:
- Traditional/high sugar taste – classic Coca-Cola, Pepsi, Jones Soda.
- Traditional/low sugar taste – Diet Pepsi, Coke Zero, Pepsi Max.
- Modern/high sugar taste – Pepsi Next.
- Modern/low sugar taste – Diet Coke.
The chocolate snack food industry
Now let’s consider a company with the gargantuan task of establishing a presence in the crowded chocolate snack food industry.
To understand the market and identify a niche where it may be able to enter and turn a profit, a perceptual map measuring quality and price is created:
- Low price/low quality – M&Ms, Cadbury Freddo Frogs, Kit-Kat.
- Low price/high quality – Hershey’s, Lindt, Toblerone, Dove.
- High price/high quality – Ferrero Rocher, Godiva, Guylian, Richart.
- High price/low quality – Reese’s Pieces, Mars, Twix, Butterfingers.
The automotive industry
Similarly, existing vehicle manufacturers can also use perceptual mapping to identify underserved areas of the market and increase revenue.
In this example, a car brand maps the consumer perception of car brands based on the metrics of sportiness and practicality:
- Sporty/practical – Honda, Volkswagen.
- Sporty/classy – Mini, Audi, Porsche, BMW.
- Conservative/practical – Kia, Toyota, Renault, Ford, Citroen, Volvo, Nissan.
- Conservative/classy – Mercedes-Benz, Rolls Royce, Infiniti, Bentley.
From the above, we can see that there may be a potential opportunity in the market to develop and sell a car that is both sporty and practical.
Beachside hotels
In the final example, a market research firm wants to create a perceptual map of existing hotel options at a popular coastal travel destination.
The firm starts by collecting consumer survey data based on the quality level of the hotel (from 3-star to 5-star) and the proximity of each to the beach.
The data are then plotted on the map to yield the following results:
- Close to the beach/5-star hotel – Hilton, Four Seasons, Marriott.
- Close to the beach/3-star hotel – Quality Inn, Best Western.
- Away from the beach/3-star hotel – Holiday Inn.
- Away from the beach/5-star hotel – Sheraton, Park Hyatt, Mandarin Oriental.
While proximity to the beach and quality are both subjective metrics, they are nonetheless important to brands in the area as they are important considerations for consumers when selecting accommodation.
Smartphone Industry
Imagine a perceptual map used by a smartphone manufacturer to analyze the competitive landscape in terms of user-friendliness and price:
- User-friendly/High Price: Apple iPhones
- User-friendly/Low Price: Google Pixel
- Less User-friendly/High Price: Samsung Galaxy S Series
- Less User-friendly/Low Price: Xiaomi Redmi Series
This helps the manufacturer understand where their product stands in relation to competitors and where potential gaps or opportunities exist.
Fashion Retailers
A fashion retailer wants to understand how customers perceive various clothing brands in terms of style and affordability:
- Stylish/Affordable: Zara, H&M
- Stylish/High-end: Gucci, Prada
- Not Stylish/Affordable: Walmart, Target
- Not Stylish/High-end: Chanel, Louis Vuitton
This helps the retailer identify their positioning and adjust their marketing strategies accordingly.
Fast Food Chains
A fast-food chain wants to create a perceptual map to compare its menu offerings with competitors in terms of healthiness and taste:
- Healthy/Tasty: Subway, Chick-fil-A (perceived as healthier options with good taste)
- Healthy/Not Tasty: Salad bars (perceived as healthy but not very tasty)
- Not Healthy/Tasty: McDonald’s, Burger King (perceived as indulgent and tasty)
- Not Healthy/Not Tasty: Generic frozen dinners (perceived as neither healthy nor tasty)
This allows the fast-food chain to see where they fit in the market and make informed decisions about menu additions or modifications.
Streaming Services
A streaming service provider creates a perceptual map to understand how customers view various platforms in terms of content variety and price:
- Broad Content Variety/High Price: Netflix, HBO Max
- Broad Content Variety/Low Price: Amazon Prime Video
- Limited Content Variety/High Price: Disney+
- Limited Content Variety/Low Price: Tubi
This helps the streaming service tailor its content strategy and pricing to meet customer expectations.
Fitness Centers
A chain of fitness centers uses perceptual mapping to analyze consumer perceptions of gym options based on equipment quality and membership cost:
- High Equipment Quality/High Membership Cost: Equinox
- High Equipment Quality/Low Membership Cost: 24 Hour Fitness
- Lower Equipment Quality/High Membership Cost: Barry’s Bootcamp
- Lower Equipment Quality/Low Membership Cost: Planet Fitness
This allows the fitness center chain to position itself effectively in the market and target specific customer segments.
Key takeaways:
- Perceptual mapping is a graphic illustration of where a brand, product, or company is positioned with respect to its competitors.
- Perceptual mapping makes value judgments about certain attributes that a business deems relevant to market competitiveness.
- Perceptual mapping may analyze qualitative consumer sentiment over a product, or it may also utilize the empirical hard data found in quantitative market research.
Key Highlights
- User Stories:
- User stories explain software features from the end-user’s perspective, focusing on the value delivered.
- Follow the format: “As a [type of user], I want [goal] so that [reason].”
- Basic User Story Examples:
- Example 1: Brand manager receives alerts about product reseller pricing to protect brand reputation.
- Example 2: Remote team leader needs team-chat app with file sharing and annotation for collaboration and archive.
- Example 3: Database administrator combines datasets for easier report compilation.
- Example 4: iOS user wants activity data synchronization with Apple Watch for better fitness tracking.
- Example 5: HR manager needs to track job candidate status across recruitment phases.
- Clarifying User Roles in Stories:
- User roles don’t have to be job titles; they can be descriptive of the function or role a user plays.
- For instance, “remote team leader” encompasses various roles within different organizations.
- User Story Example Scenarios:
- User stories can extend beyond simple templates to address more complex situations.
- SAFe Feature User Stories: Include additional info like non-functional requirements, cost of delay, and benefit hypothesis.
- Thematic User Stories: Group related stories for a common theme or functional area, delivering independent value.
- Epic User Stories: Large stories that collectively achieve a significant outcome, requiring multiple iterations.
| Related Framework | Description | When to Apply |
|---|---|---|
| Perceptual Mapping | – Perceptual Mapping is a visual technique used in market research to understand how consumers perceive products or brands relative to competitors. It involves plotting attributes or features of products/brands on a graph to visualize their positioning in consumers’ minds. It helps identify market gaps, competitive advantages, and areas for differentiation. | – Apply Perceptual Mapping when conducting market research or developing marketing strategies. Use it to analyze consumer perceptions, identify positioning opportunities, assess brand strengths and weaknesses, and inform product development or marketing campaigns. |
| Brand Positioning | – Brand Positioning refers to the unique space a brand occupies in consumers’ minds relative to competitors. It involves identifying and communicating the distinctive attributes or benefits that differentiate a brand from others. | – Utilize Brand Positioning to establish a clear and compelling position for your brand in the marketplace. Use it to differentiate your brand from competitors, communicate its unique value proposition, and attract target customers effectively. |
| Competitive Analysis | – Competitive Analysis involves evaluating the strengths and weaknesses of competitors to identify opportunities and threats in the market. It helps businesses understand competitor strategies, market positioning, and areas for differentiation. | – Employ Competitive Analysis when assessing the competitive landscape and developing strategic plans. Use it to identify competitor strengths and weaknesses, anticipate competitive threats, and capitalize on market opportunities effectively. |
| Customer Segmentation | – Customer Segmentation involves dividing a heterogeneous market into smaller, more homogeneous segments based on similar needs, characteristics, or behaviors. It enables businesses to tailor their marketing strategies and offerings to specific customer groups more effectively. | – Utilize Customer Segmentation to identify distinct groups of customers with varying needs and preferences. Use it to customize marketing messages, products, and services to better meet the specific requirements of different customer segments. |
| SWOT Analysis | – SWOT Analysis is a strategic planning tool used to identify internal strengths and weaknesses, as well as external opportunities and threats facing a business. It helps organizations assess their current situation and develop strategies to leverage strengths, mitigate weaknesses, capitalize on opportunities, and address threats. | – Apply SWOT Analysis when conducting strategic planning or assessing business performance. Use it to identify internal capabilities, external market dynamics, and areas for strategic focus to inform decision-making and strategy formulation effectively. |
| Brand Equity | – Brand Equity represents the value and strength of a brand in the marketplace. It encompasses consumer perceptions, preferences, loyalty, and associations with the brand. Building and managing brand equity is essential for creating strong brand awareness, customer loyalty, and competitive advantage. | – Focus on building and managing Brand Equity to enhance brand recognition, customer loyalty, and market competitiveness. Use strategies such as brand differentiation, consistent messaging, and delivering exceptional customer experiences to strengthen brand equity over time. |
| Product Differentiation | – Product Differentiation involves distinguishing a product or service from others in the market through unique features, benefits, or attributes. It aims to create perceived value among consumers and reduce direct competition by offering something distinct and desirable. | – Employ Product Differentiation to make your offerings stand out in the market and attract target customers effectively. Use it to identify and emphasize unique features or benefits that set your product apart from competitors and appeal to the needs and preferences of your target audience. |
| Market Positioning | – Market Positioning refers to the process of establishing a distinctive image and identity for a product or brand in the minds of target customers. It involves determining how you want your brand to be perceived relative to competitors and developing strategies to occupy a favorable position in the market. | – Focus on effective Market Positioning to create a strong and favorable perception of your brand among target customers. Use it to align your brand identity, messaging, and marketing efforts to resonate with the needs, values, and preferences of your target audience effectively. |
| Brand Image | – Brand Image reflects the overall perception and reputation of a brand in the minds of consumers. It encompasses consumers’ beliefs, feelings, and associations with the brand, influenced by past experiences, marketing efforts, and external factors. A positive brand image fosters trust, loyalty, and preference among customers. | – Cultivate a positive Brand Image to build credibility, trust, and emotional connections with your target audience. Use strategies such as consistent messaging, delivering on brand promises, and engaging with customers authentically to shape and reinforce a favorable brand image over time. |
| Market Segmentation | – Market Segmentation involves dividing a broad market into smaller, more manageable segments based on shared characteristics, needs, or behaviors. It enables businesses to target specific customer groups more effectively, tailor their marketing efforts, and meet the diverse needs of different segments. | – Utilize Market Segmentation to identify and prioritize target customer segments for your products or services. Use it to develop targeted marketing campaigns, personalized messaging, and tailored offerings that resonate with the unique needs and preferences of each segment, driving customer engagement and loyalty. |
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