market mapping

• market mapping

  Identifies how products/brands are perceived by customers relative to other products/brands in the market
• market mapping more info

  *shows extremes of two measures that are important to customers

  *laid out as matrix, products are positioned on it according to where they're judged to lie between each pair of extremes
• examples of criteria used to assess products by customers

  low price vs high price, basic vs luxury, traditional vs modern, low quality vs high quality
• market mapping usefulness

  *help spot gap in market (can be filled with new product/brand due to lack of close competitors BUT requires market research to ensure there's demand)

  *identify closest competitors

  *help with identifying what pricing strategy to use (as they know how much customers are prepared to pay)
• problems with market mapping

  *simplifies thing too much - doesn't consider other factors such as convenient location

  *subjective and may be biased - dependent on views