Download - Perceptual Mapping
Workshop on “Mapping Procedures” to ascertain positions
Raj Echambadi
An Electrical Engineer reads diagrams such as the one here
An organic chemist reads diagrams such as the one here
Why Mapping?
Marketing strategy people read perceptual maps.
What is a perceptual map? A perceptual map is a visual representation of how target
customers view the competing alternatives in a Euclidean space which represents the market
The map has the following characteristics: The axes of the map are a special set of vectors
suggesting the underlying dimensions that best characterize how customers differentiate between alternatives
The pair-wise distances between product alternatives directly indicate how close or far apart the products are in the minds of customers
A vector on the map indicates both magnitude and direction in the Euclidean space. Vectors are usually used to geometrically denote attributes of the perceptual maps
Perceptual Map of only Attributes
Perceptual Map of only Products
Both Products and Attributes
Important Decisions Before Positioning Exercises
What brands should be positioned? What categories are involved (substitutable)? What are the appropriate attributes to
measure?
Profile analysis a.k.a. Snake Plots
Fast service
Friendly
Honest
Convenient location
Convenient hours
Broad service
High saving rates
Bank A
Bank B
Levels of Competition
Diet lemon limes
Baseball cards
Fruit flavored colas
Coffee
DietCoke
DietPepsi
Diet-Rite cola
Bottled water
Lemon limes
Regularcolas
Beer
Juices
Wine
Fast food
Tea
Video rentals
Icecream
Direct competition: Diet colas
Indirect competition: Soft drinks
Generic competition: Beverages
Budget competition: Food and entertainment
Methods for Determining Competitors
Existing categories: SIC NAICSwww.census.gov/epcd/www/naics.html
Managerial judgmentCustomer-purchase-based
measures
Managerial Judgment of Competition
Markets Same DifferentProduct/Services
Same
Different
A
C
B
D
Customer-purchase-based measures
Brand Switching Data The Extent of Substitutability among Brands
Cross-Elasticity of Demand: Change in Brand B’s Sales/ Change in Brand A’s Price
Mainly Used for Nondurable Products
Brand-Switching MatrixTime t+1
A B C D E
A .6 .2 .2 0 0
B .2 .3 .4 .1 0
C .2 .3 .5 0 0
D 0 .1 .1 .5 .3
E .1 0 0 .4 .5
Time t
Developing A Perceptual Map
Two Alternative ways Attribute Rating method (AR) Overall Similarity method (OS)
Perceptual Mapping Means graphic description of customers’
perception about different brands/products. You can use it to gain
Customer perceptions for a new product concept.
Better understanding of market structure. Direction for R&D efforts to satisfy
customers better.
Attribute Rating Method
Data Cube (brands*attributes*respondents)
Statistical Analysis (Factor Analysis)Find out two (or three) axes for the
perceptual mapB2B products ok.
Overall Similarity method (OS)
Suitable for consumer products and services Ask consumers’ perception the extent of
similarity of pairs of items. Similarity Data Analysis (Multidimensional
Scaling) You name the axes and infer the attributes
Example: Pain Reliever Market
Effectiveness: perceptions on the ability to make headache pain go away fast
Gentleness: perceptions that the product would not upset one’s stomach or cause heartburn
Is there a positioning opportunity along gentleness and effectiveness?
Which opportunity is better?
Determine the Ideal Vector of your Segment
Ideal vector is a fancy term for finding the importance weights (placed by consumers) of the dimensions.
Benefit Segmentation - Positioning by Segments
Gentleness
Effectiveness
Cluster 1: Age =>60, Income = < 30K
Cluster 2: Age = <40; Income = > $60K
Segment-wise Positionings
Gentleness
Effectiveness
Tylenol
Bufferin
Excedrin
BayerPrivate Label Aspirin Anacin
Ideal for segment 1.
Ideal for segment 2.
Two different products / positionings
List of Attributes For Soft Drink Data (1 = strongly disagree to 7 = strongly agree) 1. Brand X has a refreshing taste. 2. I prefer Brand X because it has fewer calories than other drinks. 3. Brand X quenches my thirst immediately. 4. I like the sweet taste of Brand X. 5. I prefer drinking Brand X after workouts and sports because it gives
me energy. 6. I prefer Brand X because it comes in environment friendly packaging. 7. Brand X has minerals and vitamins that help quench my deep down
body thirst. 8. Brand X has a unique flavor of its own. 9. Brand X has the right mix of minerals and vitamins that are healthy
for my body. 10. I prefer to drink Brand X when I am really thirsty.
Example 1
Rotated Factor Matrixa
.930
.925
.924 .937 .936 .858 .915 .863 .855
X2X5X9X6X4X8X1X7X3X10
1 2 3Factor
Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 5 iterations.a.
Perceptual Map of Soft Drinks
FAC1
1.0.50.0-.5-1.0-1.5
FAC
21.0
.5
0.0
-.5
-1.0
-1.5
Pepsi
Nestea
Lipton
Gatorade
Coke
Allsport
Perceptual Maps of Deodorants
Ganesh and Oakenfull (1997) Example 2
U.S. Sample
Mexican Sample
LEVELS OF COMPETITION
Grand Bahama
IslandNassau/Paradise
Island
Outer Islands
TheBahamas
Bermuda BritishVirgin
Islands
Jamaica
Aruba
Barbados
Cayman Islands
USVirgin
Islands
Caribbean
Florida
Hawaii
Mexico
TropicalVacation
SkiVacation
EuropeanVacation
ThemePark
Vacation
Vacation
HomeRepair
Big Screen
TV
Car
W/In Budget Competition
Generic Competition
Higher-Order Competition
CategoryCompetition
Sub-CategoryCompetition
DIMENSIONS OF IDEAL DESTINATION ATTRIBUTES
BEACHES SAFE / FRIENDLY
VALUE FOR MONEY LUXURY CULTURE/
HISTORICPRISTINE /
SLOW ACTION ACTIVITIES
Lots of water related activities+ 0.54Stunning, beautiful beaches 0.37Easy and carefree atmosphere 0.61Friendly, welcoming people 0.53Safe at all hours 0.42Good value for money 0.74Reasonably priced resorts 0.66Budget hotels 0.43Luxury hotels 0.81Top five star resorts 0.75Variety of quality restaurants 0.47High-quality retail shopping 0.38Spas 0.34Direct air service from my city 0.30Warm weather four seasons a year 0.25Historic and cultural attractions 0.68Authentic, historic small towns 0.65Museums 0.59Festivals / Music Performances 0.43Eco-friendly 0.37Island style architecture 0.37Awe-inspiring scenery 0.36Colorful 0.30 Pristine, remote island 0.63Slow pace of life 0.57Not too many people 0.51Authentic genuine place with very little commercialization 0.49Lots of action 0.74Exciting and diverse nightlife 0.64Bustling with visitors 0.53Quality casinos 0.48A cruise destination 0.46Kayaking 0.57Fishing 0.50Great Golf courses 0.49
FACTOR ANALYSIS - DIMENSIONS OF IDEAL DESTINATION
MUSTHAVEFOR ALL
GOODTO HAVEFORMOST
APPEALSTOSOME
Factors arranged in order of importance based on mean ideal ratings.
JAMAICAPrimary and Secondary Associations
Warm weather four seasons a
year (40%)
Festivals / Music Performance (30%)
Colorful (37%)
Stunning, beautiful beaches
(29%)
Awe-inspiring scenery (27%)
Direct air service from my
city (27%)
Easy and carefree
atmosphere (32%)
Lots of water related
activates (25%)
Primary Association
Secondary Association
Tertiary Association
JAMAICA
NASSAU / PARADISE ISLANDPrimary and Secondary Associations
Lots of water related activities
(34%)
Luxury hotels (42%)
High-quality retail shopping
(29%)
Bustling with visitors (28%)
Lots of action (27%)
Stunning, beautiful
beaches (28%)
Primary Association
Secondary Association
Tertiary Association
NASSAU / PARADISE ISLAND
Spas (27%)
Quality casinos (38%)
A cruise destination
(37%)
Exciting and diverse nightlife
(26%)
Top five start resorts (36%)
OUT ISLAND OF THE BAHAMASPrimary and Secondary Associations
Slow pace of life (27%)
Authentic genuine place with very little commercialization
(30%)
Pristine, remote island (39%)
Primary Association
Secondary Association
Tertiary Association
OUT ISLAND OF THE BAHAMAS
Not too many people (36%)
KEY WESTPrimary and Secondary Associations
Exciting and diverse nightlife
(39%)
Fishing (39%)
Easy and carefree
atmosphere (35%)
Lots of water related
activities (29%)
Authentic, historic small towns (25%)
Primary Association
Secondary Association
Tertiary Association
KEY WESTLots of action (30%)
Bustling with visitors (37%)
Variety of quality restaurants (38%)
Warm weather four seasons a
year (26%)
Historic Cultural
attractions (32%)
Festivals / Music
Performances (28%)
Colorful (31%)