How to understand and interpret perceptual maps

Perceptual maps are designed to provide a visual summary of how consumers perceive the positioning of the different brand/product offerings in the market. In most cases, they are relatively simple to understand and interpret and, perhaps surprisingly, they are able to provide a significant amount of information.

In this below section, we highlight the key aspects to consider when reviewing a perceptual map and work through several examples on a step-by-step basis, using a variety of map formats.

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Purposes of a perceptual map

Understanding the different roles of a perceptual map can greatly assist in the interpretation and review process. Let’s quickly relook at why perceptual maps are used (as was presented in the ‘what is a perceptual map?’ section). When presented with maps to review, this checklist should help guide your analysis and conclusions.

Reason	Discussion
Check reality	To see how the target consumers actually perceive the various offerings and positions
Impact of campaigns	To measure/track the impact of recent marketing campaigns and any other marketing mix changes
Monitor new products	To identify how well any new products have been positioned into the market
Monitor competition	To monitor the impact of various competitive offerings over time
Look for gaps	To assist the company identify market gap, as an input into the new product development process
Understand segments	To provide information that will help further understand different market segments
Track preference changes	To track any changes in consumer preferences (and other environmental factors) over time

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What to review on a perceptual map

Using a standard two determinant attribute perceptual map, the following diagram highlights the aspects that should be reviewed (with a discussion following).

 

 (NOTE: To view this diagram more clearly, copy and paste it into a word document.)

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What to look for/what to do with a perceptual map

1. Check whether the two axes appear to be using appropriate determinant attributes.

That is, do they represent the attributes that consumers are likely to use to distinguish between products?

2. Are the labels of the axes opposite (polarized)?

This is simply a quick check of the validity of the perceptual map. You would probably do this if the product positions shown on the map did not appear to be logical (from your knowledge of the market).

In some cases, additional maps should be constructed using alternate determinant attributes (which is a common approach). Does the product have a clear and distinct market positioning? That is, its own market space? This is quite important. A key goal of positioning is to be perceived as having a unique offering in the marketplace (that is, some points-of-difference).

For products with strong brand equity, being positioned close to weaker competitors is not much of a problem, whereas weak competitors probably need to reposition slightly to create their own market space.Is this where the firm intended the product to be positioned?

3. Does it reflect its positioning goals?

This is an opportunity to review how the brand/product is really perceived in the marketplace.

Generally you would expect a minor variation between the positioning goal and the actual outcome. It only becomes a problem to be corrected if there is a substantial difference.

4. Are the firm’s products positioned too closely together?

If so, is this an effective competitive barrier or a cannibalization risk? Firms tend to run multiple product offerings in the same target market. In a very competitive market, such as above, a firm with closely positioned products will ‘own’ that area of the market, so this would be considered a competitive strength.

However, if the market had limited/weak competition, then closely positioned products from the same firm would be a weakness.

5. What market gaps exist?

Are they attractive/viable? Is there a threat of a new entrant? There are generally gaps in all markets, but some gaps in cluttered markets are fairly precise.

You need to first consider why there is a gap. Often gaps exist because they are not viable or there is no underlying market need. If a viable gap exists, the firm needs to decide whether this is an opportunity for a new product or assess the threat of a new entrant?

6. Has any of the product positions altered significantly (since the last map review)?

Is our competitive position improving or deteriorating as a result? Trends are important. Over time many market conditions change; we modify our marketing mix, competitors change their offerings, new firms may enter the market, and consumer preferences may change.

By comparing perceptual maps over time, the firm can assess whether their competitive position has improved. If market segments are jointly shown on the perceptual map, are we well positioned in regards to our target market/s? Sometimes a clear/distinct product positioning may be misleading. When market segment preferences are overlaid onto a perceptual map, a different picture of the market may emerge.

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Test Your Knowledge: Perceptual Maps Quiz

Question 1:
What is the primary purpose of a perceptual map?
a) To create advertising campaigns
b) To visualize consumer perceptions of product positioning
c) To evaluate product manufacturing processes
d) To identify brand slogans

Correct Answer: b) To visualize consumer perceptions of product positioning

Question 2:
Which of the following is not a reason for using perceptual maps?
a) Tracking the impact of marketing campaigns
b) Identifying viable market gaps
c) Determining manufacturing costs
d) Monitoring competition over time

Correct Answer: c) Determining manufacturing costs

Question 3:
When analyzing the axes on a perceptual map, what is important to check?
a) That they use attributes likely used by consumers to distinguish between products
b) That they are labeled with numerical values
c) That they are consistent with the firm’s financial objectives
d) That they align with the company’s advertising strategy

Correct Answer: a) That they use attributes likely used by consumers to distinguish between products

Question 4:
What might it indicate if a firm’s products are positioned too closely together on a perceptual map?
a) A lack of differentiation or risk of cannibalization
b) A strong barrier against competitors
c) A successful alignment with consumer preferences
d) An indication of poor market demand

Correct Answer: a) A lack of differentiation or risk of cannibalization

Question 5:
What is a potential reason for gaps appearing on a perceptual map?
a) The firm has monopolized the market
b) The market lacks competition
c) The gap may not reflect a viable or existing market need
d) Gaps always indicate opportunities for new product development

Correct Answer: c) The gap may not reflect a viable or existing market need

Question 6:
Why is it important to compare perceptual maps over time?
a) To ensure the firm achieves consistent revenue growth
b) To assess trends in competitive positioning and market changes
c) To evaluate employee performance in marketing teams
d) To improve supply chain efficiency

Correct Answer: b) To assess trends in competitive positioning and market changes

Question 7:
What does it suggest if a product’s positioning differs significantly from its intended position on a perceptual map?
a) Consumers misunderstand the product’s pricing
b) The firm’s competitive strategy has succeeded
c) The brand needs to reassess its marketing mix
d) The product is dominating the market

Correct Answer: c) The brand needs to reassess its marketing mix

Question 8:
When reviewing perceptual maps, why is it important to consider whether the axes are polarized (opposite labels)?
a) To ensure the map is visually appealing
b) To check the map’s validity and logical representation
c) To simplify the interpretation process for stakeholders
d) To emphasize the firm’s strengths

Correct Answer: b) To check the map’s validity and logical representation

Question 9:
What additional insight can overlaying market segments on a perceptual map provide?
a) Financial projections for new product lines
b) A clearer view of how well-positioned a product is for its target markets
c) The technical specifications of competing products
d) The effectiveness of advertising campaigns

Correct Answer: b) A clearer view of how well-positioned a product is for its target markets

Question 10:
Which of the following is a potential benefit of identifying a market gap on a perceptual map?
a) The ability to increase production efficiency
b) An opportunity for a new product or awareness of potential threats
c) Reducing the cost of advertising campaigns
d) Eliminating the need for further market research

Correct Answer: b) An opportunity for a new product or awareness of potential threats

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