Understanding Perceptual Maps

What is a perceptual map?

A perceptual map is of the visual technique designed to show how the average target
market consumer understands the positioning of the competing products in the marketplace.
In other words, it is a tool that attempts to map the consumer’s perceptions and
understandings in a diagram.

The word ‘perceptual’ comes from the word ‘perception’, which basically refers to the
consumers’ understanding of the competing products and their associated attributes. (Note:
In some textbooks, perceptual maps are referred to as positioning maps, but for our
purposes they essentially have the same meaning.)

The most common presentation format for a perceptual map is to use two determinant
attributes as the X and Y axes of a graph, however there are also other formats that are
sometimes used.

DIFFERENCE TO POSITIONING MAPS

Perceptual maps aim to demonstrate the perception of the consumer’s understanding of

brands. When mapping consumers understanding, we are actually mapping how they see
the brand’s positioning.

The reason they are NOT correctly referred to as a positioning map is because they are
mapping the consumers understanding only – which may or may not be technically correct.

For example, you could ask a consumer to score their perception of quality of different
types of cars from high to low quality. This is just their perception, as they are not technical
experts in the product category. We may get quite different scores if we had the different
brands of cars tested by engineering experts.

Definition of perceptual maps

Most definitions are fairly consistent in their description of perceptual maps, as follows:

  “Perceptual maps measure the way products are positioned in the minds of
consumers and show these perceptions on a graph whose axes are formed by
product attributes.” (Kardes, Cronley, & Cline, 2011).
  “A perceptual map represents customer perceptions and preferences spatially by
means of a visual display” (Ferrell & Hartline, 2008).

You will note that both definitions highlight that the information is visually presented on
some form of graph or display. And that a perceptual map is designed to examine consumer
perceptions and understanding, primarily of products and their associated positioning.

The main types of perceptual maps

There are three main formats for a presenting a perceptual map.

Using two determinant attributes

The first format (which is the one presented in the majority of introductory marketing
textbooks and most probably the only format an undergraduate student would need to
know) simply uses two determinant attributes on the graph. Below is a simple example of a
perceptual map for soft drinks in this format.

The main advantage of this presentation format is that it is very simple to construct and
interpret. You will note that only two product attributes have been considered. In this case,
they are ‘to what extent does the consumer consider the product to be high/low in sugar’
and ‘to what extent is a product considered high/low in caffeine’.

The simple combination of these two scores (probably obtained from a consumer survey)
places the product offering onto the map. For example on this map, the 7-Up product
offering is perceived as having a moderate level of sugar and being relatively low in
caffeine’.
Using many product attributes

The second approach to perceptual mapping used to use a statistical technique called
correspondence analysis. Using a computer, a statistical program (such as SPSS)  has the
capacity to map multiple product attributes at the same time. This type of map is a little bit
more confusing and difficult to interpret, but it does provide a good overview of how the
target market views and connects the various attributes.

You will note that there are no defined axes in this type of perceptual map. Instead the
various product attributes are scattered throughout the map, along with the perceived
positioning of the various product offerings. (How to interpret these maps is discussed in
another section of this marketing study guide.) The following is an example of a perceptual
map formed by correspondence analysis:
Joint perceptual maps

Occasionally you will see a perceptual map that also maps the preferred needs of different
market segments, based on the same attributes. These types of maps are sometimes referred
to as joint perceptual maps, as the perceived product positioning is jointly presented with
the needs of the segment.

The addition of market segment needs being placed on the perceptual map allows the firm
to identify how well they are positioned to relative to their particular target markets. The
following is an example of this type of a joint perceptual map, showing age and gender
demographic segments.
WHY USE A PERCEPTUAL MAP?

There are multiple reasons to use perceptual maps, some of these include:

 We get a true understanding of how our brand is perceived in the marketplace

 We can track how the perception of our brand is evolving over time, with new
products and campaigns
 We can track the perception of competitor products and measure the impact of
their marketing strategies
 We can identify positioning preferences (i.e ideal combination of product
attributes) for different market segments
 We can identify possible gaps and opportunities for new products
 We can identify possible opportunities for repositioning our brand

Further resources
Visit Perceptual Maps for Marketing for a free Excel template to automatically produce and
format perceptual maps.

Benefits of Perceptual Maps

Why use perceptual mapping?
There are many reasons why a firm would undertake perceptual mapping, the following
table lists a number of these reasons.

Reason Benefits of Perceptual Maps

Check reality To see how the target consumers actually perceive the various
offerings and positions

Impact of campaigns To measure/track the impact of recent marketing campaigns and

any other marketing mix changes

Monitor new products To identify how well any new products have been positioned into
the market

Monitor competition To monitor the impact of various competitive offerings over time

Look for gaps To assist the company identify market gap, as an input into the
new product development process

Understand segments To provide information that will help further understand different
market segments

Track preference To track any changes in consumer preferences (and other

changes environmental factors) over time

How to understand and interpret

perceptual maps
Perceptual maps are designed to provide a visual summary of how consumers perceive
the positioning of the different brand/product offerings in the market. In most cases, they
are relatively simple to understand and interpret and, perhaps surprisingly, they are able to
provide a significant amount of information.

In this below section, we highlight the key aspects to consider when reviewing a perceptual
map and work through several examples on a step-by-step basis, using a variety of map
formats.

Purposes of a perceptual map

Understanding the different roles of a perceptual map can greatly assist in the interpretation
and review process. Let’s quickly relook at why perceptual maps are used (as was
presented in the ‘what is a perceptual map?’ section). When presented with maps to review,
this checklist should help guide your analysis and conclusions.

Reason Discussion

Check reality To see how the target consumers actually perceive the various offerin

Impact of campaigns To measure/track the impact of recent marketing campaigns and any o
changes

Monitor new products To identify how well any new products have been positioned into the

Monitor competition To monitor the impact of various competitive offerings over time

Look for gaps To assist the company identify market gap, as an input into the new p
process

Understand segments To provide information that will help further understand different ma
 Track preference changes To track any changes in consumer preferences (and other environmen
time

What to review on a perceptual map

Using a standard two determinant attribute perceptual map, the following diagram
highlights the aspects that should be reviewed (with a discussion following).

 (NOTE: To view this diagram more clearly, copy and paste it into a word document.)

What to look for/what to do with a perceptual map

1. Check whether the two axes appear to be using appropriate determinant attributes.

That is, do they represent the attributes that consumers are likely to use to distinguish
between products?

2. Are the labels of the axes opposite (polarized)?

This is simply a quick check of the validity of the perceptual map. You would probably do
this if the product positions shown on the map did not appear to be logical (from your
knowledge of the market).

In some cases, additional maps should be constructed using alternate determinant attributes
(which is a common approach). Does the product have a clear and distinct
market positioning? That is, its own market space? This is quite important. A key goal of
positioning is to be perceived as having a unique offering in the marketplace (that is,
some points-of-difference).

For products with strong brand equity, being positioned close to weaker competitors is not
much of a problem, whereas weak competitors probably need to reposition slightly to create
their own market space.Is this where the firm intended the product to be positioned?

3. Does it reflect its positioning goals?

This is an opportunity to review how the brand/product is really perceived in the

marketplace.

Generally you would expect a minor variation between the positioning goal and the actual
outcome. It only becomes a problem to be corrected if there is a substantial difference.

4. Are the firm’s products positioned too closely together?

If so, is this an effective competitive barrier or a cannibalization risk? Firms tend to run
multiple product offerings in the same target market. In a very competitive market, such as
above, a firm with closely positioned products will ‘own’ that area of the market, so this
would be considered a competitive strength.

However, if the market had limited/weak competition, then closely positioned products
from the same firm would be a weakness.

5. What market gaps exist?

Are they attractive/viable? Is there a threat of a new entrant? There are generally gaps in all
markets, but some gaps in cluttered markets are fairly precise.

You need to first consider why there is a gap. Often gaps exist because they are not viable
or there is no underlying market need. If a viable gap exists, the firm needs to decide
whether this is an opportunity for a new product or assess the threat of a new entrant?

6. Has any of the product positions altered significantly (since the last map review)?

Is our competitive position improving or deteriorating as a result? Trends are important.

Over time many market conditions change; we modify our marketing mix, competitors
change their offerings, new firms may enter the market, and consumer preferences may
change.

By comparing perceptual maps over time, the firm can assess whether their competitive
position has improved.If market segments are jointly shown on the perceptual map, are we
well positioned in regards to our target market/s?Sometimes a clear/distinct product
positioning may be misleading. When market segment preferences are overlaid onto a
perceptual map, a different picture of the market may emerge.

Interpreting Perceptual Maps Example

A Worked Example of Interpreting a
Perceptual Map
Let’s review the three perceptual maps shown in the ‘what is a perceptual map?’ section of
this study guide. Using the checklist of questions , a summary of conclusions that can be
drawn is provided following each map.

Please note that the perceptual maps and their interpretation are based on hypothetical
data and are provided for educational purposes only and may not reflect the brand’s actual
position in the marketplace.

 
FINDINGS REVIEW OF THE PERCEPTUAL MAP

Matching of the major brand offerings Coke and Pepsi products appeared to be paired together. Therefore, the m
these firm’s offerings as very similar across their three cola products (norm
diet/light).

Distinct product positioning achieved The market perceives significant differences between the normal and the n
by brands under the brands of Coke and Pepsi.The market also perceives a reasonable
between the firm’s two diet offerings.
 Competitive barriers in place Having multiple distinctive offerings (both Coke and Pepsi) in the market is
barrier (for them combined), as the firms ‘own’ significant parts of the mar
there would significant competition between the two, but they are relative
other players, particularly at the top of the perceptual map.

Some cannibalization likely However, there is less positioning differential in regards to the top left hand
map. As a result, some cannibalization of sales will probably occur.

Several market gaps exist The map highlights many market gaps, particularly towards the middle of th
probably viable gaps and present a significant market opportunity.

Non-cola advantages The two non-cola products (7-Up and Fanta) appear to be very well position
having a clear and distinct space on the map.

Map appears incomplete In terms of the last two comments, it should be noted that the map appear
missing a number of competitors. Therefore, a more complete map may re
difference conclusions being drawn.

Logic check is OK Other than the previous concern, the product positions shown on the map
and in line with expectations.

Now let’s look at the same map, this time with the consumer preferences for different target
markets overlaid. Additional comments, as a result of this further information, are
summarized in the table after the map.

 
 
FINDINGS REVIEW OF THE PERCEPTUAL MAP

Gender This is a market that appears to have significant needs differences between males and
differences females, as there appears to be a stronger preference appropriate for low sugar product
offerings by females.

Fanta well- As presented, the Fanta product is very well positioned relative to the children’s market,
positioned without any strong competitor being evident.

7-Up needs a While 7-Up has a clear and distinct positioning on this map, it does not appear to be
positioning directly aligned to the preference needs of any particular segment. As a result, the product
improvement may need to be repositioned closer to a target market preference.

Two clear There are two distinct market gaps available that would probably present a good market
market gaps opportunity, as both the 30 to 50 years and the 50+ years age group do not have product
offerings that are perceived to closely meet their needs.

The young male segment appears to be divided between normal Coke/Pepsi and low sugar
Young males Coke/Pepsi, resulting in their preference needs being mapped somewhere in the middle.
split This indicates that this target market should be further segmented.

Young females The most competitive segment is young females target market, which has four strong
is a competitive product offerings positioned close to it.
segment

Caffeine need is There appears to be a strong relationship between the preference/need for high caffeine
age related and the age group (youth market has a stronger preference).

NOTE These are additional comments, or clarifications, to the comments made in the previous
table. You should note how the addition of the customer preference data changes the
 interpretation of the perceptual map.

The final perceptual map below looks a more complicated, but the same review principles
apply. The major difference is that there are multiple attributes listed (not just two). This
creates a more complete picture of the market and consumer’s perceptions. It also gives a
guide to how the consumers tend to link/connect the various product attributes.
FINDINGS REVIEW OF THE PERCEPTUAL MAP

Head-to-head In most cases, the Coke/Pepsi products are perceived as quite similar, resulting in head-
positioning to-head competition in most cases.

Generally However, each product generally has its own positioning space, despite having a close
unique space competitor.
New products The introduction of Coke Zero and Pepsi Max appear to have had the impact of dating
has dated both Diet Coke and Pepsi Max, as they are more closely associated with ‘old-fashioned’.
existing ones Likewise the 7-Up positioning is slightly associated with the ‘old-fashioned’ attribute as
well.

Coke Zero and Pepsi Max are positioned close to the attribute of popular, probably due
New products to the fact that they are more recent products.
are trendy

Perceived Pepsi Light and Diet Coke both appear to have a gender preference, being seen as more
gender female-oriented drinks.
positioning

Max/Zero Pepsi Max and Coke Zero are both seen as healthier alternatives, probably due to their
connected to low sugar perception.
health

7-Up seen as an 7-Up is position close to “good for a change”, indicating it is an alternative choice, rather
alternative than being a preferred choice.

Sugar + caffeine Consumers seem to link sugar and caffeine in their minds to equal an ‘energy boost’,
= energy perhaps rivaling the substitute energy drink market at times.

Sugar-kids There is a clear market connection between high sugar and being more appropriate to
connection children, this is evident by Fanta’s positioning

Taste better for The ‘great taste’ attribute is positioned more towards the drinks with high sugar, and
sugar the ‘weak taste’ attribute is much closer to the low sugar versions.

Link of old- Consumers have linked ‘old-fashioned’ and weak taste to some extent, which may be a 
weak longer term concern for these brands, particularly if new products are planned.

A Step-by-step Guide to Constructing a

Perceptual Map
How to construct a perceptual map
The section below highlights how you can construct a perceptual (or a positioning map).
However, if you are new to perceptual maps, you may need to review what is a perceptual
map first.

If you would like to download a free Excel spreadsheet that will enable you to quickly and
easily create your own perceptual maps, then visit www.perceptualmaps.com

Step one – select two determinant attributes

There are two main approaches to constructing a perceptual map. The first is used it is
where management of the organization utilizes their collective the knowledge and
experience of the market to construct a perceptual map, and the second approach is where
you have access to the results of a suitable  market research study.

Either way, the first step is to select the determinant attributes. As discussed in the what is a
perceptual map topic, determinant attribute are those attributes that the consumer relies
upon in their purchase decision. In other words, determinant attributes are quite important
to them and the consumer uses them to help differentiate competitive offerings.

As a rough guide, some likely determinant attributes in different product categories are
shown in the following table:

Product Category Likely Determinant Attributes

Shoes Comfort, design/style, quality, functionality

Instant coffee Flavor/taste, country of origin, variety, quality

Breakfast cereal Healthiness, sugar level, variety, fun/boring factor

Holiday destination Temperature, travel distance, culture difference, facilities

 Camera Zoom, memory, size/weight, picture quality

Note: Price is not shown in the above table. While price is a cue for quality and certainly
does affect the perceptions of a brand/product, it is generally not helpful when constructing
a perceptual map. You may use quality instead of price – but never use price and quality in
the same map as they are high correlated and the map’s outcome will be poor.

Depending upon the product category, we need to consider how consumers choose the
product between offerings. Take the shoe category; most consumers would select shoes on
the attributes listed in the above table. While that list may not be valid for every single
consumer, we are simply trying to get an understanding of the target market overall, so
some generalization is fine.

From the list of possible determinant attributes (that may be given to you or you may need
to develop based on your best judgment), you need to select two only. These two will form
the axes of your perceptual map. Try and pick the two that you think would be the most
important in terms of the product choice between competitive offerings.

Step two – list the main competitors in the product category

For whatever product category you are looking at, you will need to compile a list of the
main competitive brands/products. These are the brands that will be plotted upon on to your
perceptual map. You don’t need to list every single competitor in the marketplace, but you
should try for a list of five to ten players.

Note that the term ‘brands/products’ has been used. This is because sometimes there are
multiple products under the same brand. For example in the cereal market, Kellogg’s is
the main family brand name, and they run a number of individual brand names will such as
Kellogg’s Corn Flakes, and they also may have product line extensions (that is, different
varieties of Corn Flakes). So depending upon the task, you may need to drill down deeper if
required.

 
Step three – Create scores for these brands

Now we have our have chosen the brands, we need to allocate scores for them using the
two determinant attributes. The simplest way to do this is by using simple 1 to 5 rating
scale.

Let’s look at an example in the following table. This example uses the holiday with two of
the determinant attributes listed category (from the above table). Note how a 1 to 5
polarized (opposite) scale has been used. The scores are a good estimate of how an average
American traveler (the assumed target market in this case) would perceive these possible
holiday destinations/countries.

Holidays Travel distance Culture difference

1 = very close, 5 = 1 = very similar, 5 = quite different

very far

Mexico 1 3

Canada 1 1

The UK 3 1

India 4 4

Singapore 4 2

Australia 5 1

Egypt 3 5

Brazil 2 3
 China 3 5

Note: Obviously, if you have been given the relevant data or access to a market research
study, then you don’t have to estimate the figures in the above table; you can use the real
data instead.