Positioning map

economic-dictionary

The positioning map is a graph that allows us to observe, through two planes, the position that a brand occupies compared to other brands of competing companies according to the attributes that are valued by the consumer.

Of course, a positioning map is subjective, because the perception of a brand will depend on the idea that the consumer has formed within their brain.

In other words, they are used in marketing to generate strategies, especially when trying to introduce new products, whether they are goods or services to the market. Positioning maps help companies find business opportunities, especially in spaces that are found to be underserved.

They are also used to determine what is the current position that our brand occupies in the mind of the consumer, according to the comparison of other competing brands. So this provides information that will help implement the necessary strategies in order to achieve the proposed objectives.

In reality, a positioning map is usually made when the strategic planning of the company is elaborated or when the SWOT or SWOT analysis is made, to consolidate opportunities and strengths; likewise to better face threats and weaknesses.

How to make a positioning map?

  1. Above all, the first thing to do is to select the attributes that are important within the competitive sector that is being analyzed.
  2. Then select the attributes that are most valued by consumers, according to consumer preferences there could be many attributes that should be considered.
  3. Finally, it is important to determine among the attributes mentioned 2, 3 or even 4 of the most relevant, which will be analyzed in the positioning map.
Attributes taken into account to make a positioning map

Positioning map example

If it were the car market, the simplified positioning map would be done as follows:

  • Without a doubt, the first step would be to select the most important attributes within the sector such as price, quality, style, comfort and safety.
  • Apart from, we must consider the attributes of consumer preference, which could be price, quality, performance, style, functionality, design, comfort and safety, among many that can be mentioned.
  • Finally, for practical purposes we could select the price and performance as the most relevant.

Positioning map analysis

In summary, the map has 5 quadrants and following the previous example, the analysis would be as follows:

Quadrant 1

On the one hand, if we stay in the first quadrant, this would indicate that the company is perceived as a low-priced and low-performance brand. This positioning can be good for the company if what it does is offer less for less, the consumer pays less, but receives less.

Quadrant 2

Now if it is located in quadrant 2, the consumer perceives that the brand has a high price, but with the performance it is low. This positioning is the weak one for the company, since more is paid and less is received.

Quadrant 3

Whereas, the position of quadrant 3 indicates that the brand is perceived with a high price and has a high level of performance. This could also be a positive positioning because you pay a high price, but receive a high return, you position yourself as more for more.

Quadrant 4

Of course, in Quadrant 4 you have a low price and a high performance level. This is one of the best rankings achieved because people perceive that they pay less, but receive more performance.

Quadrant 5

In relation to quadrant 5, price and performance are perceived at an average or acceptable level.

Finally, we can conclude by saying that a positioning map is a very useful and simple marketing technique that can be applied by any company. Since it offers very important information to know what the situation of the company is compared to its competitors and thus be able to plan and apply the appropriate action strategies.

Tags:  economic-analysis derivatives markets 

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