Product Positioning Map

Introduction to Product Positioning Maps

A product positioning map, also known as a perceptual map, is a visual representation of how consumers perceive competing products or brands in a market. It helps marketers understand the competitive landscape and identify opportunities for differentiation.

Purpose of Positioning Maps

• Competitive Analysis: Visualize your position relative to competitors
• Gap Identification: Find unserved market segments
• Strategic Planning: Guide positioning and repositioning decisions
• Communication Tool: Clearly convey market position to stakeholders

Creating a Positioning Map

Step 1: Identify Key Attributes

Select two attributes that are most important to your target market. These should be dimensions that differentiate products in meaningful ways. Common attributes include:

• Price (High vs Low)
• Quality (High vs Low)
• Traditional vs Modern
• Basic vs Premium
• Local vs International

Step 2: Research Consumer Perceptions

Gather data through surveys, focus groups, or market research to understand how consumers rate each product on the selected attributes.

Step 3: Plot the Products

Create a two-dimensional grid with one attribute on each axis. Plot each product or brand based on consumer perceptions.

Step 4: Analyze the Map

Identify clusters of competition, gaps in the market, and your brand's relative position.

Types of Positioning Maps

1. Simple Positioning Map

Uses two dimensions to plot products. Most common for basic competitive analysis.

2. Multi-Dimensional Maps

Uses more than two attributes, often created through factor analysis. More complex but provides richer insights.

3. Ideal Point Maps

Includes consumer ideal points showing where customers would like products to be positioned.

Interpreting Positioning Maps

Clusters

Products grouped together indicate direct competition and similar positioning strategies.

Gaps

Empty spaces may represent market opportunities or areas with no viable demand.

Proximity to Ideal Point

Products closer to consumer ideal points have stronger positioning.

Strategic Applications

Repositioning

If your current position is crowded or unfavorable, use the map to identify better positioning opportunities.

New Product Launch

Identify gaps where a new product could be positioned to minimize competition.

Competitive Response

Anticipate competitor moves and plan defensive positioning strategies.

Example: Automobile Market

Consider a positioning map with Price (Low to High) on one axis and Style (Conservative to Sporty) on the other:

• High Price/Sporty: Ferrari, Porsche
• High Price/Conservative: Mercedes, BMW (sedans)
• Low Price/Sporty: Mazda MX-5, Mini Cooper
• Low Price/Conservative: Toyota Corolla, Honda Civic

Limitations

• Limited to two dimensions in basic maps
• Based on perceptions which may not reflect reality
• Static representation of a dynamic market
• Attribute selection significantly affects results

Conclusion

Product positioning maps are powerful tools for understanding competitive dynamics and developing positioning strategies. When used correctly, they provide valuable insights for marketing decision-making.