T his could potentially be an effective way to position your new product - targeting the low-price, high-quality segment. The market map also shows a potential gap in the market, in the lower-priced, mid-quality segment. Further, we see that Rimmel London and Elf Cosmetics are competing closely in the low-price and low-quality segment. Elf Cosmetics is placed as the lowest price, lowest quality product (bottom left quadrant). Tom Ford Beauty and Guerlain are placed as the makeup brands that offer the highest quality product for the highest price (top right quadrant). You can see that the two dimensions being used to represent the position of each brand are price and quality. Figure 2 above represents the perceptual map the researchers have constructed. Marketers of a new makeup brand have decided to survey consumers on their attitudes and perceptions towards a list of existing makeup brands. Makeup Brands Perceptual Map, StudySmarter Originals Let's now take a look at an example of a perceptual map.įig. Advantages and Disadvantages of Market Mapping The market mapping process also helps marketers gain deeper insight into consumer behavior in terms of attitudes and perceptions. Once the competition has been evaluated, marketers may use the market map to identify which competitors to compete with or to come up with new ideas for product development in untapped markets. They may also observe how close competitors are to their brand. These brand attributes could include quality, taste, texture, price, etc.īased on this information the researcher can plot all the different brands or products and identify which areas of the diagram are heavily competitive. These attributes will make up the two dimensions of the market map's scale. This process can be conducted through surveys, interviews, focus groups, or a combination of two or more methods.įrom this information, the researcher selects the most important brand attributes. To create a perceptual map, the market researcher must ask consumers to identify important brand attributes and evaluate specific aspects of the brand including which brands are seen as competitors. Identify areas where competition is concentrated (and not concentrated), The steps of creating a perceptual map are as follows: With these insights, Gadget Galaxy's owners can make informed decisions on which products to stock and how to position their store strategically in the competitive landscape of Techville. Additionally, they can identify gaps in the market, such as a lack of budget-friendly smartphones or a specific brand that is not currently available in town. By plotting this information on a graph, the owner can clearly see which shops are thriving and which are struggling. They collect data on all the competing shops, including the brands they offer, price ranges, and customer reviews. To stay ahead of the competition, the owner of Gadget Galaxy decides to create a market map. Imagine a town called Techville with several smartphone shops offering different brands and models. It's a simple yet powerful technique that helps businesses uncover strategic insights based on the relative standing of their rivals in the market. Market mapping is the process of visually organizing information about various competitors in a specific industry to understand their positions and identify potential market trends. Read along to find out more about how we can construct market maps. But how can businesses know exactly where their product stands in the eyes of their customers? How can they gain further insight into customers' attitudes and perceptions of their competitive environment? One way of finding this out is through market mapping. How will the business differentiate its product or brand from competitors? How will it persuade consumers to choose its new product over competitors' products? There are a variety of competitive analyses businesses can conduct to find out where exactly they stand in the market based on existing industry data. Positioning a product correctly on the market is essential for all businesses. Market Segmentation Targeting and Positioning.
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