Perceptual Mapping Presentation

perceptual mapping

A technique used in marketing to depict how brands are perceived relative to one another, when mapped in two or more dimensions. Also called ‘position mapping’. A list of brands is specified, e.g. say, ten brands of curry paste. Respondents are asked to say how similar they think these brands are to one another (A is similar to C, D is similar to E, etc.). It is respondents' perceptions of similarity that are captured — these might not accurately mirror objective similarities, e.g. people may think A is similar to C when, in fact, the two brands of curry paste have quite different ingredients. A statistical procedure is employed to obtain spatial positions of the brands in multidimensional space to reflect these perceptions. A common procedure is multidimensional scaling, for which there is off-the-shelf software, e.g. PREFMAP, INDSCAL. Output is depicted as a map. This conveys the relative position of the brands, but does not relate to any absolute measure of distance.

The number of dimensions (two, three, etc.) depends on how many are needed to plot the data without incurring an intolerable level of stress. The dimensions themselves are derived without labels, and great care must be taken in labelling them. A formal way to label dimensions involves the use of attribute ratings. At the same time as similarity data are collected, the researcher asks respondents to rate (on a ratings scale ) each brand for a number of attributes (taste, quality ingredients, price and so forth). Each attribute is assessed for how closely it corresponds with the dimensions (low-high price may be closest to dimension 1; thus, dimension 1 is labelled the price axis). Although formal, the selection of attributes is subjective.

In marketing, a popular alternative to the use of similarity data is the use of preference data, i.e. data where an evaluation of one item dominates another. Data may be in the form of paired comparisons (is A preferred over C?) or rankings (A is most preferred, followed by C, etc.). Similar procedures apply, but with preference data it is possible to investigate ‘ideal points’, e.g. by including a hypothetical brand X into the preference comparisons or ranking. The word ‘ideal’ here is misleading because X may be far from ideal. It is also possible to locate ideal combinations of attributes on the map — either for individual consumers or segments — and see which brands (if any) are close to the ideal. Various marketing implications might follow, including the possibility of designing a new product for an unmet market (seen as an empty quadrant on the perceptual map) or repositioning an existing product to be closer to the ideal point of a segment than competitors. This form of analysis is very beguiling but it can be very misleading, e.g. an empty quadrant may represent an unmet need or a phantom market, and a new brand may get closer to the ideal point of a segment but, in so doing, change the whole configuration of the map (including a relative shift in the ideal point). One of the most popular business games, MARKSTRAT, uses these facets of perceptual mapping to simulate the dynamic interplay of competing firms in established and new markets.

The technique is applied in product and brand positioning studies. new product development ; positioning ; segment-target-position strategy . Informally, the ideas behind perceptual mapping are reflected in the thinking of many marketing managers, even though they may never make use of the formal techniques.

Exhibit 4–14

“Product Space”

Representing

Consumers’

Perceptions for

Different Brands of

Bar Soap

Each segment may

have its own

preferences

The circles in Exhibit 4-14 show different sets (submarkets) of consumers clustered

near their ideal soap preferences. Groups of respondents with a similar ideal product are

circled to show apparent customer concentrations. In this graph, the size of the circles

suggests the size of the segments for the different ideals.

Ideal clusters 1 and 2 are the largest and are close to two popular brands—Dial and

Lever 2000. It appears that customers in cluster 2 want more moisturizing than they see

in Dial. However, exactly what this brand should do about this isn’t clear. Perhaps Dial

should leave its physical product alone—but emphasize moisturizing more in its promotion

to make a stronger appeal to those who want moisturizers. A marketing manager

talking about this approach might simply refer to it as “positioning the brand as a good

moisturizer.” Of course, whether the effort is successful depends on whether the whole

marketing mix delivers on the promise of the positioning communication.

Note that ideal cluster 7 is not near any of the present brands. This may suggest an opportunity

for introducing a new product—a strong moisturizer with some deodorizers. A

firm that chooses to follow this approach would be making a segmenting effort.

Combining versus segmenting

Positioning analysis may lead a firm to combining—rather than segmenting—if managers

think they can make several general appeals to different parts of a “combined” market.

For example, by varying its promotion, Coast might try to appeal to segments 8, 1, and 2

with one product. These segments are all quite similar (close together) in what they want in

an ideal brand. On the other hand, there may be clearly defined submarkets—and some

parts of the market may be “owned” by one product or brand. In this case, segmenting efforts

may be practical—moving the firm’s own product into another segment of the general

market area where competition is weaker.

A positioning analysis helps managers understand how customers see their market. It is

a visual aid to understanding a product-market. The first time such an analysis is done,

managers may be shocked to see how much customers’ perceptions of a market differ

from their own. For this reason alone, positioning analysis may be crucial. But a positioning

analysis usually focuses on specific product features and brands that are closecompetitors in the product-market. Thus, it is a product-oriented approach. Important

customer -related dimensions—including needs and attitudes—may be overlooked.

Premature emphasis on product features is dangerous in other ways as well. As our bar

soap example shows, starting with a product-oriented definition of a market and how bar

soaps compete against other bar soaps can make a firm miss more basic shifts in markets.

For example, bars have lost popularity to liquid soaps. Other products, like bath oils or

body washes for use in the shower, are now part of the relevant competition also. Managers

wouldn’t see these shifts if they looked only at alternative bar soap brands—the focus

is just too narrow.

It’s also important to realize that the way consumers look at a product isn’t just a

matter of chance. Let’s return to our bar soap example. While many consumers do

think about soap in terms of moisturizing and deodorizing, other needs shouldn’t be

overlooked. For example, some consumers are especially concerned about wiping out

germs. Marketers for Dial soap recognized this need and developed ads that positioned

Dial as “the choice” for these target customers. This helped Dial win new customers,

including those who switched from Lifebuoy—which was otherwise similar to Dial

(see Exhibit 4-14). In fact, what happened to Lifebuoy highlights what happens if

managers don’t update their marketing strategy as customer needs and competition

change. Lifebuoy was the first deodorant soap on the market; it was a leading brand

for over 100 years. But it gradually lost sales to competitors with stronger marketing

mixes (clearer differentiation, better positioning, and superior customer value) until

sales declined and Lever stopped selling it.

Sometimes marketing managers use a positioning statement to provide focus for a

marketing mix. A pos i tioning statement concisely identifies the firm’s desired target market,

product type, primary benefit or point of differentiation, and the main reasons a

buyer should believe the firm’s claims. The one or two benefits highlighted in the statement

should be those most important to the target market—and unique to the brand.

It’s important that everyone involved in planning the marketing strategy agree with the

positioning statement because it helps narrow options and guide the selection of a marketing

mix.

Some firms use a template like the following to aid in preparation of a positioning

stat e ment:

For ( our target market ), ( our brand ) of all ( product type ) delivers ( key benefit or point of differenti

a tion ) because ( our brand ) is ( reasons to believe ).

A few years ago, marketing managers for Mountain Dew used this template to develop

the following pos i tioning statement:

For 16 to 24-year-old males, who embrace excitement, adventure, and fun, Mountain Dew of

all ca r bonated soft drinks, delivers great taste that exhilarates like no other because Mountain

Dew is energizing, thirst-quenching, and has a one-of-a-kind ci t rus flavor.

The positioning statement provided Mountain Dew’s advertising agency with a dire

c tion to follow that lead to a series of television commercials that reinforced this pos itioning.

The statement guided decisions about packaging, point-of-purchase prom o tion,

sponsorships, the look and feel of a website, and new flavors. The marketing strategy

based on this positioning helped Mountain Dew gain market share with this target

market. 17

As we emphasize throughout the text, you must understand potential needs and attitudes

when planning marketing strategies. If customers treat different products as substitutes,

then a firm has to position itself against those products too. Customers won’t always

be conscious of all of the detailed ways that a firm’s marketing mix might be different, but

careful positioning can help highlight a unifying theme or benefits that relate to the determining

dimensions of the target market. Thus, it’s useful to think of positioning as part of

the broader strategy planning process—because the purpose is to ensure that the whole

marketing mix is positioned for competitive advantage.

Positioning statement

provides direction for

marketing strategy