Perceptual mapping

Perceptual mapping or market mapping is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. The positioning of a brand is influenced by customer perceptions rather than by those of businesses. For example, a business may feel it sells upmarket products of high quality, but if customers view the products as low quality, it is their views which will influence sales. Typically the position of a company's product, product line, or brand is displayed relative to their competition. Perceptual maps, also known as market maps, usually have two dimensions but can be multi-dimensional or use multiple colours to add an extra variable. They can be used to identify gaps in the market and potential partners or merger targets as well as to clarify perceptual problems with a company's product. So, if a business wants to find out where its brand is positioned in the market, it might carry out market research. This will help them to find out how the customers sees their brand in relation to others in the market. Perceptual mapping enables companies to better understand their customers: the who, why, where, how and what of their behaviour. If a business is perceived in a manner they find unsatisfactory, further research then identifies what can be done to change that. Perceptual mapping also allows businesses to see what consumers think of other brands, particularly their competitors. Regular uses of the maps can help track preferences, and see changes as they happen. Perceptual mapping can help define market segments, showing clusters of businesses differentiated by key aspects (such as higher class or number of restaurants). Within the clusters found in perceptual maps of entire industries, a business can classify potential partners or possible businesses to merge with, since the clustering of brands signifies the similarity in businesses, meaning they have corresponding attributes. It can also help identify gaps in a market where a new product or service could be introduced.