Developing Positioning Maps
Positioning maps help marketers visualize how customers perceive brands, products, or services within a competitive market. They show the relative position of competing offerings based on two or more important customer attributes.
A positioning map is also known as a perceptual map because it reflects customer perceptions rather than only technical product characteristics.
For example, customers may compare restaurant brands according to:
- Low price versus high price.
- Traditional menu versus modern menu.
- Fast service versus slow service.
- Basic experience versus premium experience.
By plotting competitors on a map, marketers can identify crowded positions, underserved customer needs, potential opportunities, and areas where repositioning may be required.
Learning Objectives
- Define positioning maps and perceptual maps.
- Explain the purpose of positioning maps.
- Select relevant positioning dimensions.
- Collect and analyze customer perception data.
- Create a basic two-dimensional positioning map.
- Interpret competitive clusters and market gaps.
- Use positioning maps for strategic decision-making.
- Recognize the limitations of perceptual mapping.
What is a Positioning Map?
A positioning map is a visual diagram showing how customers perceive different brands or products relative to one another.
Most positioning maps use two axes. Each axis represents a customer-relevant attribute or benefit.
For example:
- The horizontal axis may represent price.
- The vertical axis may represent quality.
Brands are then placed on the map according to how customers perceive them.
The map does not necessarily show the company's intended position. It shows the position customers actually associate with the brand.
Intended Position vs Perceived Position
| Intended Position | Perceived Position |
|---|---|
| The position the company wants to create. | The position customers actually believe the brand occupies. |
| Based on marketing strategy. | Based on customer experience and perception. |
| Communicated through product, price, promotion, and distribution. | Influenced by experience, reviews, competitors, and brand reputation. |
| Controlled partly by the company. | Cannot be fully controlled by the company. |
A positioning map is useful because it can reveal differences between the intended and perceived position.
Why Positioning Maps are Important
Positioning maps help businesses:
- Understand customer perceptions.
- Compare competing brands.
- Identify crowded market positions.
- Discover possible market gaps.
- Evaluate differentiation.
- Support product development.
- Guide communication strategy.
- Assess repositioning opportunities.
- Monitor changes in brand perception.
- Improve strategic decision-making.
Basic Structure of a Positioning Map
A basic positioning map contains:
- A horizontal axis.
- A vertical axis.
- Two opposite ends on each axis.
- Brand or product positions.
- Labels identifying competitors.
Example Dimensions
Horizontal Axis: Low Price to High Price
Vertical Axis: Basic Quality to Premium Quality
Brands may then appear in one of four broad areas:
- Low price and basic quality.
- Low price and premium quality.
- High price and basic quality.
- High price and premium quality.
Example Positioning Map
| Low Price | High Price | |
|---|---|---|
| Premium Quality | Brand B | Brand A and Brand C |
| Basic Quality | Brand D | Brand E |
This simplified table represents the same logic as a visual positioning map.
Brand A and Brand C may be direct competitors because customers perceive them as similar in price and quality. Brand D occupies a value-oriented position, while Brand E may have a weak position because customers perceive it as expensive but basic.
Common Positioning Map Dimensions
The correct dimensions depend on the product category and what customers consider important.
| Industry | Possible Horizontal Axis | Possible Vertical Axis |
|---|---|---|
| Automobiles | Affordable to Expensive | Practical to Sporty |
| Hotels | Basic to Luxury | Standardized to Personalized |
| Restaurants | Fast Service to Slow Service | Low Price to Premium Price |
| Smartphones | Simple to Advanced | Affordable to Premium |
| Online Learning | Low Flexibility to High Flexibility | Academic to Career-Focused |
| Fashion | Traditional to Trendy | Budget to Luxury |
| Banking | Traditional to Digital | Standard Service to Personalized Service |
Selecting the Right Dimensions
The dimensions used in a positioning map must be meaningful to customers.
Marketers should not select attributes only because they are easy to measure. The dimensions should influence customer choice.
Good Positioning Dimensions Should Be
- Relevant to the target market.
- Important in purchase decisions.
- Clearly different from each other.
- Easy to understand.
- Measurable through research.
- Useful for comparing competitors.
Weak Dimensions Include
- Attributes customers do not care about.
- Two dimensions that measure almost the same thing.
- Internal technical measures customers do not understand.
- Dimensions selected without market research.
Sources of Positioning Dimensions
Marketers can identify suitable dimensions through:
- Customer interviews.
- Surveys.
- Focus groups.
- Online reviews.
- Sales team feedback.
- Competitor analysis.
- Social media discussions.
- Customer service records.
- Search behavior.
- Industry research.
Steps for Developing a Positioning Map
- Define the product category.
- Identify the target market.
- List major competitors.
- Identify important customer attributes.
- Select the two most useful dimensions.
- Collect customer perception data.
- Calculate average perception scores.
- Plot brands on the map.
- Interpret clusters, gaps, and competitive positions.
- Develop strategic recommendations.
Step 1: Define the Product Category
The company must clearly define the market being analyzed.
Examples include:
- Premium smartphones.
- Food delivery applications.
- Online learning platforms.
- Business messaging software.
- Luxury hotels.
- Organic skincare brands.
A category that is too broad may produce an unclear map. A category that is too narrow may exclude important competitors or substitutes.
Step 2: Define the Target Market
Different customer groups may perceive the same brands differently.
For example:
- Students may perceive a laptop mainly according to price and battery life.
- Design professionals may compare the same laptop brands according to processing power and display quality.
- Business users may focus on reliability and security.
The positioning map should therefore be developed for a clearly defined target market.
Step 3: Identify Competitors and Alternatives
The map should include the brands or solutions customers realistically consider.
This may include:
- Direct competitors.
- Indirect competitors.
- Substitute products.
- Traditional alternatives.
- Do-it-yourself solutions.
- The option of not purchasing.
For an online learning platform, competitors may include other course platforms, universities, training centers, free online videos, and professional certification providers.
Step 4: Identify Important Customer Attributes
Customers may evaluate brands according to many possible attributes.
Examples
- Price.
- Quality.
- Convenience.
- Speed.
- Reliability.
- Innovation.
- Customer support.
- Prestige.
- Ease of use.
- Product variety.
- Customization.
- Sustainability.
Research should determine which attributes have the greatest influence on customer choice.
Step 5: Select Two Positioning Dimensions
Choose two attributes that:
- Are highly important to customers.
- Separate competitors meaningfully.
- Represent distinct ideas.
- Support a useful strategic comparison.
For example, a hotel market could use:
- Price.
- Level of personalized service.
This may be more useful than using price and affordability because those two concepts are too closely related.
Step 6: Collect Customer Perception Data
Positioning maps should ideally be based on customer research rather than management assumptions.
Survey Example
Customers may be asked to rate each brand from 1 to 7 on the following dimensions:
- Affordable to expensive.
- Basic to innovative.
| Brand | Price Score | Innovation Score |
|---|---|---|
| Brand A | 6 | 6 |
| Brand B | 3 | 4 |
| Brand C | 5 | 3 |
| Brand D | 2 | 2 |
The average customer rating for each brand can then be plotted on the map.
Step 7: Plot the Brands
Each brand receives one coordinate for each dimension.
For example:
- Brand A: Price 6, Innovation 6.
- Brand B: Price 3, Innovation 4.
- Brand C: Price 5, Innovation 3.
- Brand D: Price 2, Innovation 2.
The brand is then placed at the corresponding point on the positioning map.
Step 8: Interpret the Map
The map should be analyzed carefully to identify:
- Competitive clusters.
- Isolated positions.
- Empty areas.
- Overcrowded positions.
- Weak value positions.
- Potential repositioning opportunities.
Competitive Clusters
A competitive cluster exists when several brands occupy similar positions on the map.
This may indicate:
- Strong direct competition.
- Limited differentiation.
- Similar customer perceptions.
- Possible price pressure.
- A need for stronger positioning.
Brands located close together are more likely to be considered substitutes by customers.
Market Gaps
A market gap is an empty or lightly occupied area on the positioning map.
A gap may represent a possible opportunity, but it is not automatically attractive.
Before Entering a Gap, Ask
- Do customers actually want this combination of benefits?
- Is the segment large enough?
- Can the company deliver the required value?
- Can the position be profitable?
- Why have competitors not entered this position?
An empty area may represent unmet demand, but it may also be empty because customers do not value that position.
Ideal Points
An ideal point represents the position customers would prefer most within the market.
Different customer segments may have different ideal points.
For example:
- Price-sensitive customers may prefer moderate quality at a low price.
- Luxury customers may prefer premium quality, exclusivity, and a high-service experience.
- Business customers may prefer reliability, security, and strong technical support.
Adding ideal points to a positioning map helps marketers compare current brand positions with customer preferences.
Positioning Maps and Market Segments
A single market may contain several customer segments, each with different preferences.
| Customer Segment | Preferred Position |
|---|---|
| Budget Buyers | Low price and acceptable quality |
| Convenience Seekers | Easy access and fast service |
| Premium Buyers | High quality and personalized service |
| Innovation Seekers | Advanced features and modern design |
A company should compare its intended position with the preferences of the selected target segment.
Bubble Positioning Maps
A bubble map adds a third variable through the size of each plotted circle.
The bubble size may represent:
- Market share.
- Sales revenue.
- Number of customers.
- Brand awareness.
- Segment size.
This provides more information than a standard two-dimensional map.
For example, two brands may occupy similar positions, but one may have a much larger market share. The larger bubble makes that difference visible.
Positioning Maps Over Time
Customer perceptions can change. A positioning map should not be treated as permanent.
Changes may occur because of:
- New advertising campaigns.
- Product improvements.
- Price changes.
- Negative publicity.
- Competitor actions.
- Changes in customer preferences.
- New technology.
- Market expansion.
Developing maps at different times helps businesses measure movement in brand perception.
Example: Online Learning Platforms
Assume customers evaluate online learning platforms according to:
- Academic orientation to career orientation.
- Low flexibility to high flexibility.
| Platform | Career Orientation Score | Flexibility Score |
|---|---|---|
| Platform A | 6 | 6 |
| Platform B | 3 | 5 |
| Platform C | 5 | 3 |
| Platform D | 2 | 2 |
Platform A may be attractive to working professionals because it combines career relevance with high flexibility.
Platform B may appeal to customers seeking flexible academic learning. Platform C may offer career-focused programs but with less scheduling flexibility.
Example: Smartphone Market
A smartphone positioning map may use:
- Affordable to expensive.
- Basic to innovative.
Possible interpretations include:
- A premium innovative brand may target technology enthusiasts.
- An affordable basic brand may target price-sensitive users.
- An affordable innovative brand may represent a strong value opportunity.
- An expensive basic brand may have difficulty justifying its position.
Using Positioning Maps for New Product Development
Positioning maps can support new product decisions by showing where existing competitors are concentrated.
Possible Uses
- Identify underserved customer needs.
- Design new product features.
- Select an appropriate price level.
- Develop a distinct value proposition.
- Avoid entering an overcrowded position.
- Estimate likely competitors.
However, product development should not rely on the map alone. Additional research is required to confirm customer demand and commercial feasibility.
Using Positioning Maps for Repositioning
A company may use a positioning map to identify whether its current position is weak or too similar to competitors.
Repositioning Options
- Change product features.
- Improve quality.
- Change price.
- Target a new customer segment.
- Emphasize a different benefit.
- Change promotional communication.
- Improve customer service.
- Modify distribution channels.
Repositioning requires more than changing advertising. The actual customer experience must support the new intended position.
Using Positioning Maps for Communication
A positioning map can help marketers select the most important message to communicate.
For example, if customers perceive several competitors as similar in quality and price, a business may emphasize:
- Superior service.
- Specialized expertise.
- Convenience.
- Sustainability.
- Personalization.
The selected difference should be relevant and credible.
Quantitative Methods for Positioning Maps
Basic positioning maps can be created using average customer ratings. More advanced research may use statistical methods.
Common Methods
- Mean rating analysis.
- Factor analysis.
- Multidimensional scaling.
- Correspondence analysis.
- Cluster analysis.
These methods help identify hidden perception dimensions and reduce many customer attributes into a smaller number of meaningful factors.
Multidimensional Scaling
Multidimensional scaling is a statistical technique used to represent similarities and differences among brands in a visual space.
Customers may be asked to judge how similar or different pairs of brands are. The analysis then produces a map where:
- Brands placed close together are perceived as similar.
- Brands placed far apart are perceived as different.
This method can reveal customer perceptions even when the most important dimensions are not known in advance.
Data Quality Requirements
The quality of a positioning map depends on the quality of the underlying data.
Reliable Data Should Be
- Collected from the correct target market.
- Based on an adequate sample.
- Current.
- Free from leading questions.
- Collected consistently.
- Analyzed objectively.
A visually attractive map based on weak data may lead to poor strategic decisions.
Common Positioning Map Mistakes
1. Using Management Opinions Instead of Customer Data
Internal beliefs may differ significantly from customer perceptions.
2. Selecting Irrelevant Dimensions
The axes must reflect attributes that influence customer choice.
3. Assuming Every Empty Space is an Opportunity
A gap may exist because there is little or no demand.
4. Ignoring Customer Segments
Different segments may perceive brands differently.
5. Including Too Few Competitors
Important alternatives and substitutes may be missed.
6. Treating Perceptions as Technical Facts
A product may be technically superior but still perceived as average.
7. Using Outdated Data
Markets and perceptions can change quickly.
8. Relying on Only One Map
Different attribute combinations may reveal different strategic insights.
Limitations of Positioning Maps
- Two dimensions may oversimplify complex decisions.
- Results depend on the selected attributes.
- Customer perceptions may change over time.
- Different market segments may require separate maps.
- Maps do not prove that an empty position is profitable.
- Perceptions may not reflect actual product performance.
- Average scores may hide important differences among customers.
Positioning maps should therefore be combined with market research, financial analysis, competitor analysis, and strategic judgment.
Best Practices
- Define the target market clearly.
- Use customer research to select dimensions.
- Include direct and indirect competitors.
- Use attributes that influence purchase decisions.
- Create separate maps for different customer segments when necessary.
- Test whether apparent market gaps represent real demand.
- Update maps regularly.
- Compare intended and actual brand positions.
- Use the map as one input rather than the complete strategy.
- Align strategic actions with actual customer perceptions.
Practical Activity 1: Create a Positioning Map
Select four competing brands from one product category.
Complete the following table:
| Brand | Dimension 1 Score | Dimension 2 Score | Reason for Rating |
|---|---|---|---|
| Brand 1 | |||
| Brand 2 | |||
| Brand 3 | |||
| Brand 4 |
Plot the brands on a two-dimensional map and answer:
- Which brands are direct competitors?
- Which position is most crowded?
- Is there an apparent market gap?
- Does the gap represent a realistic opportunity?
- Which brand has the clearest position?
Practical Activity 2: Customer Perception Survey
Design a short survey asking customers to rate four competing brands on two important attributes.
Use a scale from 1 to 7.
| Brand | Attribute 1 Rating | Attribute 2 Rating |
|---|---|---|
| Brand 1 | ||
| Brand 2 | ||
| Brand 3 | ||
| Brand 4 |
Calculate the average score for each brand and create a positioning map using the results.
Discussion Activity
Choose one industry and discuss the following questions:
- Which two attributes are most important to customers?
- Which brands appear to occupy similar positions?
- Which brand has the strongest differentiation?
- Is there an underserved position?
- What evidence would be needed before entering that position?
Self-Assessment Questions
- What is the difference between intended positioning and perceived positioning?
- Why should positioning dimensions be based on customer research?
- What does it mean when two brands are close together on a positioning map?
- Why is an empty map position not automatically a market opportunity?
- How can a positioning map support repositioning?
- What is an ideal point?
- What additional information can a bubble map show?
- What are the main limitations of a two-dimensional positioning map?
Key Takeaways
- A positioning map visually shows how customers perceive competing brands.
- Most maps use two customer-relevant dimensions.
- The map should reflect actual customer perception rather than management assumptions.
- Brands located close together are generally perceived as similar.
- Competitive clusters may indicate weak differentiation and intense competition.
- Empty areas may represent opportunities, but customer demand must be confirmed.
- Ideal points show the positions preferred by particular customer segments.
- Positioning maps can support product development, communication, targeting, and repositioning.
- Maps should be updated as markets and customer perceptions change.
- Perceptual mapping should be combined with broader strategic and financial analysis.
Lesson Summary
Positioning maps are valuable strategic tools for understanding how customers perceive brands relative to competitors. By selecting meaningful dimensions, collecting reliable perception data, and plotting competing offerings, marketers can identify competitive clusters, potential gaps, and opportunities for differentiation. However, a map does not automatically prove market demand or profitability. Effective use requires customer research, careful interpretation, and alignment with the company's resources, value proposition, and target market strategy.