What is a positioning map in marketing? How can we create one?This is related to segmentation.
Positioning is a marketing process that involves differentiating a product or service offering from what already exists or is already offered by competitors. It involves the discovery and the communication of the business’ unique selling point in relation to the competitors.
Positioning maps are diagrams drawn to illustrate the customer perception of the business’ offering based on price, quality, or other product benefits and how the perception compares against the competitors. The visual diagram helps marketers in coming up with the appropriate positioning strategy, which may involve developing new competitive advantages or optimizing existing ones.
To create a position map one needs to define the consumer needs that they would like to understand and develop a market scope for the analysis. Price and the benefit that will be used in the mapping need to be defined, for instance, the price can be the retail or wholesale price of the different products. The primary benefit can be the quality, features, and serviceability among other parameters. The different products covered would then be analyzed and placed in their rightful places (quadrants) based on how they combine/relate to the price and the primary product benefit.
A positioning map is a tool that is usually used by people who are in marketing and deals with products that they are attempting to market. The idea is that everyone has a different perception of a certain product. What one person may like, another may not. This is why a positioning map is created.
The positioning map is created by drawing a vertical axis and a horizontal axis. The products are then "mapped." It can now be decided which products are the "best." Basically, this tool is created to compare and contrast various products in order to gain more knowledge on which are better or needs to be altered.
Positioning refers to the perception of a product in the minds of consumer in relation to its competing product. Positioning map is a graphical device to study and analyse the positions or perception of each of a group of competing products in respect of two specific product characteristic.
It is a basically a graph that represents the strength or extent of the two product characteristics on x and y-axis. For example, to find relative position of different brands of cars in respect of customer perception of superiority of their styling and technical features, the graph may represent the the styling attractiveness of the model along x-axis and technical superiority along y-axis. Then each of the model to be plotted on this graph according to the assessment of customer perception in respect of these two characteristics.
Positioning map can help a company classify existing market products in different position categories. This insight can be used by the company in several ways. For example, it shows identifies the product which are the closest competitors of the company's product and the strength and weaknesses of the company's product in respect of its competing products. It cal also help company to identify market segments with specific product requirements where new products may be launched by the company.