Day 6 - TEAM D - Aman

Perceptual Mapping

(In View of Marketing)Perceptual mapping is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.

Marketing research technique in which consumer's views about a product are traced or plotted (mapped) on a chart. Respondents are asked questions about The additional information provided by a perceptual map’s third dimension can be measured – this improvement is, by definition, less than the information conveyed on the first or second dimensions but it is nevertheless positive, and can make a difference to the interpretation. Consumer perceptions of products are the input used to produce two-dimensional or multi-dimensional perceptual maps.  So, how can your company use perceptual maps to create new technology products?

§  Chrysler, Oldsmobile, and Buick failed to adequately define their brand – they all seem to be perceived by consumers as the same products.  The same is true for Cadillac, Mercedes, and Lincoln.  This is very bad, as consumers don’t have a clear reason to buy the individual brand.

§  Holes exist where there are NO direct competitors – these show opportunities for profitable new products.  For instance, a huge hole exists at the extreme sporty end of the spectrum below Porsche. A company could own this market if they develop something very sporty and moderately affordable.

§  Other holes exist, so it’s a matter of matching one (or more) of these holes with the competencies of your firm. These opportunities offer a significant strategic advantage over the competition.

§  You need to be careful; some holes are there not because no one has developed a product for that niche, but because there are NO customers in the niche.  For example, the point of origin reflects cars that are neither sporty nor conservative and neither distinctive nor practical.  Likely a car like this would have little appeal to ANY target market.

This example of perceptual mapping used the automobile industry, but it can be done for any industry – especially in technological industries, where significant opportunities still exist.  In theory, perceptual mapping is very easy, but perceptual mapping, like any analysis technique, can be dangerous if not done correctly; leading to bad decisions that cost you money.  Here are some guidelines if you want to do perceptual mapping right.