Here’s a video giving you an overview of perceptual mapping and then walking you through an example. This is useful for a new entrepreneur trying to refine their market and business idea. It’s also useful for an existing business, trying to redefine their market, or add to their product line. If you found this useful, check out the courses page or go directly to the Entrepreneur and the Idea course.
The concept of perceptual mapping is about figuring out where a business lies in relation to its industry and what the customers are wanting from the business or offering. It uses two factors at a time. If you are just getting into business or are developing a new product line, perceptual mapping shouldn’t be overlooked. Plus it’s a wonderful excuse to draw pretty pictures.
As an example, if I wanted to get into the automobile business, I would look at several factors that my potential customer would be interested in. Factors I might consider would be safety, price, luxury, sport, environmentally friendly, and image. You would take two of these factors at a time and graph them, with one factor being on the x axis and the other factor being on the y axis – each with a high and low. You’d end up with four quadrants. Within those four quadrants you would start putting pins where everyone else in that industry landed. Once you have done this for all of the factors listed you can start to see visually where there are gaps in product offering.
Ideally, you would then be able to build a new product (in this case, automobile) that would fill those gaps. Alternatively, you might find there to be good reason those gaps exist – such as the market segments that might be buyers in those gaps being not substantial enough to allow for economic feasibility. For more information on this topic please CONTACT US.