What is a perceptual map?

Perceptual Maps are widely used tools in marketing that provide a visual representation of customer perceptions towards objects (products, brands or companies), and how these are positioned in the marketplace. Respondents are asked to make judgements based on similarity, likelihood to purchased and overall satisfaction. Once the data is collected, aggregated and analyzed the objects can be plotted in multidimensional space. An Example In a study about compact cars, respondents are asked to evaluate the similarities among several makes (Ford Focus, Chevy Aveo, Mini Cooper, Honda Insight, Toyota Corolla, Scion XB, Kia Rio and Mazda 3). After the data is collected, the overall similarity scores for all possible pairs of objects are aggregated across the various age groups of respondents and then entered into a contingency table. Then with the aid of multivariate statistical analysis, the similarity judgments are unfolded, transformed into distance measures and correctly positioned in multidimensional space. The distance between objects is small for similar objects and farther apart for dissimilar objects. While a variety of multivariate statistical techniques exist to generate perceptual maps, multiple discriminant analysis, multiple correspondence analysis and logit analysis tend to be used most frequently. More recently developed hybrid maps are often composed by first devising a perceptual map and then introjecting preferences as ideal points or as vectors.

Product or perceptual mapping refers to methods to analyze and understand consumer perceptions of

products. The products can be almost any identiable object, including consumer products (toothpaste, '
cars, over-the-counter drugs), industrial products (computers, tools), institutions (corporations, hospitals, magazine publishers), activities (vacation spots, movies) or people (entertainers, political candidates). Product mapping produces a picture or map of a market. The map shows how products are perceived on specic features or attributes such as reputation, price, quality etc. Product maps show which products compete in the consumer's mind and suggests how a product can be positioned to maximize preference and sales. A sample product map for the pain reliever market is shown on the next page. This map shows how pain relievers are viewed on attributes such as gentleness and effectiveness. This map will be explained in the following pages

What Are The Marketing Applications of Product Mapping?

Product maps provide valuable insights for a number of marketing decisions. Some major applications include: Market Description and Segmentation Product maps identify which products, companies or services compete in a market. Maps provide a clear

description of the structure of a market and suggest possible segmentation strategies.

Identrjjzing Product Weaknesses Maps show how products are viewed or rated on specic attributes or dimensions. Analysis of maps can identify weaknesses on attributes and suggest new advertising andfor positioning strategies.

Concept Development and Evaluation

Proposed new product concepts can be developed and evaluated by examining how the

What Types of Companies Have Used Product Maps? Many companies have found product mapping to be useful in helping them understand their market and develop marketing strategy. These include package goods companies, service organizations, retailers, car manufacturers, advertising agencies and candy makers to name a few. A major hotel chain used product mapping to help them understand their image among business

travellers. The map identied an important problem. The chain was perceived to be very close to a low
status hotel because of a poor rating on two crucial attributes. As a result of this study, the chain

implemented a communication program aimed at improving their image on these key attributes among
business travellers. Recently, Dow Chemical conducted a product mapping study to develop a segmentation strategy to enter the specialty plastics market. According to Richard Siemer of Dow, "we conducted a study to

identify potential positions for Dow Chemical that combined high customer need and competitive
weakness." In order to collect data, Dow conducted interviews with industry decision makers in ten

market segments. Analysis of this data by product mapping showed that the key success factor was service, not technical superiority. After completion of the product mapping, Siemer stated "we were able

to develop a strategic positioning for Dow that focused and prioritized our resources where they would
have the greatest competitive advantage and then were able to abandon issues and priorities that had low potential return because of customer indifference
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Pricing strategy