What Is a Perceptual Map in Marketing? (+ Step-by-Step Guide)

‍A big part of marketing is all about raising awareness about your product and making sure that people know it exists.

‍Next to that comes the task where you also have to help them really understand the value your brand offers compared to your competitors.

‍Throw in the fact that sometimes it gets fuzzy how you differentiate from other offerings, and it can get quite complicated.

‍This is why your business might need to include a perceptual map in your marketing strategy.

‍But how does it work? And does your company really need it? Keep reading to find out all the answers.

‍A perceptual map in the marketing context is a chart that shows how different businesses compare to each other. It’s all about helping you understand how people out there (especially your target consumers) perceive you in comparison with similar brands in your niche.

‍This strategic approach helps you figure out whether the audience really likes your offerings or if they have other preferences and why.

‍If you’ve ever seen one of these odd-looking graphs floating around on the internet, you were looking at one of these maps.

‍Source: The G2 Enterprise Grid Report for Contact Center, Summer 2023

‍Done right, it can help you see any details you might miss when it comes to the real needs your consumers have.

‍It’s extremely important because if you understand this, you can:

• See where you stand relative to your competitors.
• Know how to improve your service or product to better match your consumers’ needs.
• Spot new opportunities that can grow your business more quickly and make it more profitable.
• Come up with better targeted marketing strategies that your audience can actually respond to.
• Position your brand much better and stand out so that customers remember you and actually recognize your company.
• Gain insights that help you make better marketing (and even business) decisions.

‍This is why perceptual maps can make a huge difference for your company. They are a perfect visual first step to take out the guesswork and give you real data to work with.

‍And we all know that informed, data-based decision-making always works better, whether in business or life.

‍There are several types of these charts you might need. But which one should you pick?

‍Let’s take a look at each:

Two-Dimensional

‍This is one of the most common perceptual map marketing examples, where your analysis is based on two main factors (attributes). This could be a comparison between price and quality or convenience vs. utility. You get the picture.

‍Typically, the graph shows 2 ends of the spectrum, like price (cheap and expensive), quality (low and high), etc.

Multi-Dimensional

‍This type of map has more than two attributes. It covers more nuances, and you get more insights from this. This can cover price, quality, convenience, and as many other factors as you want to add to the list. But it might get quite complex fast if you compare too many features.

Spidergram (Radar)

‍This one clearly shows you how your customers rate your product/service. You need several attributes that help people accurately compare your brand with other similar ones.

‍So, normally, you’d rate each brand on a scale of 1 to 10 for every feature. And then, you can connect the dots (literally) and see where each brand “wins and loses”.

Joint

‍This one is a bot similar to the two-attribute map. Only, it shows the needs of different customer groups. This way, you can better understand the expectations of each client segment.

‍Now, you understand what those graphs are. But what can you actually use them for?

‍Here are some of the best use cases you can try for your own company:

#1 Create a New Product

‍Businesses that use perceptual mapping in their marketing strategies can usually find gaps more quickly and accurately. These include things both they and other brands in their niche miss.

‍For example, say that you are a smartwatch company focused on high-quality products with super useful features. And you only targeted high-income earners.

‍But then you create your graph and learn that your target customers mostly prefer your competitors because their products offer more or less the same cool features at a cheaper price.

‍You can then find a way to appeal to this segment of the audience by creating a more budget-friendly option of your product.

‍This is what most phone companies do. Each year, Apple releases different versions of the latest iPhone with some differences in specs and pricing.

‍So, if you want a larger screen, more memory, etc., you can pay for a more spec’d-out phone. But if you just want the latest iPhone, you can pick a simpler option.

‍This helps them capture different client groups.

‍The same goes for their cheapest phones (SE series and 16e). Since 2013, with the release of iPhone 5c, Apple has started moving into the more affordable territory. And it’s also for a good reason. Their first lower-cost option (iPhone 5c) made up 27% of all iPhone sales that year.

‍Source: Neowin

‍If you position your brand as luxury and this doesn’t work for you, you can create a separate sub-brand.

‍A perfect example of this is the Rolex and Tudor watch companies. They’re both Swiss watch brands that are clearly targeted at different customers. Rolex is more high-end, while Tudor focuses on serving those who still want great quality but at more affordable prices.

‍But here’s where it gets interesting – both brands were started by the same person, Hans Wilsdorf. He created the sub-brand Tudor specifically to target people who wanted more affordable quality watches.

‍So, maybe it could be an option for you as well.

‍Source: Miltons Diamonds

#2 Position Your Brand More Strategically

‍Your ability to create and interpret the data on a perception chart can help you position your company in an entirely new way.

‍When you figure out how people see your product/service in terms of quality and price, you can choose to lean into that.

‍On the other hand, you might decide it’s not what you want, especially if your competitors are seen the same way. If that’s the case, you might need to do something different to change your brand perception.

‍One of the companies that does this is Starbucks. They’re seen as the hip, cool, but expensive coffee shop. They took their time to create this niche position for themselves, carefully making their business the preferred choice for influencers, trendy college students, and cool people.

‍Plus, they’ve managed to create a reputation for themselves as the place to be for remote workers. Customers openly admit they like that they can buy coffee for a few bucks and then sit around for hours to get work done.

‍Source: Reddit

‍Compare them to Dunkin’ Donuts, which is a cheaper option. Yes, they’re both coffee shops, but you can clearly see how different their perception is.

‍Source: Reddit

#3 Identify Untapped Gaps in the Market

‍Many times, it is possible for businesses to overlook some gaps in the market. So, paying attention to your map can help you spot this quickly.

‍For example, many cars are ranked by users based on how affordable and fuel-efficient they are. Of course, most car manufacturers focus on this and try to highlight these facts when promoting their latest models.

‍At the end of this spectrum are clients who prefer luxury cars.

‍If you look even more closely at this segment, you can still find a split here. Some prefer the traditional, proven, luxury cars like Rolls-Royce. You will find them collecting brands like Ferrari, Aston Martin, Bentley, Porsche, etc.

‍Source: Aston Martin

‍But there are also others who prefer something a bit more complex that blends technology and performance with luxury. Some in this group may also pick brands that are more eco-friendly, especially if they are younger and more tech-savvy.

‍This is the group Elon Musk admits he built Tesla for. He wanted something that moved away from fossil-based fuel, used renewable energy sources, but was still innovative.

‍Source: Tesla

‍On the other extreme will be consumers who just want a car that is reasonably priced and can take them from point A to B.

‍If you are in this industry, you might notice that no one is catering to the needs of those who want something more moderately priced, but also with high fuel efficiency. So, you can target this group and fill in that gap.

‍This is an example of how your marketing perceptual map can help you spot untapped opportunities.

‍If you really do your research, this can improve your revenue and expand your brand reach.

#4 Compare Your Products to Similar Ones in the Market and Track Changes Over Time

‍A positioning perceptual map is great for seeing how you compare to other similar products or services in the market. We see this play out with smartphones all the time. The two most notable examples are Apple and Samsung (of course).

‍Source: NSYS Group

‍These two top the list for being the brands with the highest pricing. But, people also see them as the phones with the most features to offer, compared to most other brands like Motorola, Xiaomi, Pixel, etc., which fall within the affordable but mid-tier territory.

‍So, if you’re one of the manufacturers of this phone, you would want to compare your product from time to time with the others to see where you stand. After all, you don’t want to slip lower down the ladder, giving your competitors or some other new brand an edge over you.

‍Plus, offerings also change based on users’ needs, trends, and new technologies. So, your map can help you keep track of the shifts that have happened over time.

‍This way, you can see if your tweaks and releases have brought you closer to your target market’s ideals.

#5 Create Better Customer Experience

‍Your map also gives you insight into what your customers’ preferences are in terms of quality, service, etc.

‍That’s why by analyzing this, you’re putting yourself in a better position to meet that expectation. You get feedback and know if there are also areas where you can improve your current workflow to serve them better.

‍For example, a fitness protein bar company might notice that most customers complain about the taste of their protein bars.

‍So, if they decide to start making protein bars and focus their messaging on great taste, they would really differentiate themselves from others in their niche.

‍Source: Veloforte

#6 Launch More Effective Market Campaigns

‍Thanks to the insights you’ve gathered from the maps, you now know how people truly feel about your brand.

‍Since you have this data, you can now accurately decide which direction your next campaigns need to take to create the right impression of your business and product/service in people’s minds.

‍If your research shows that your audience doesn’t really perceive you the way you want, think about how you can tweak your messaging to change that.

‍You can even test it with several campaigns and track performance after each one to see how effective your new messaging is.

‍Now it’s time to create your chart. And here are our top tips to make that process easier for you:

Step 1: Be Clear About Your Goals From the Start

‍There are all kinds of different goals that push businesses to create a product perceptual map:

• Know where you stand in your niche.
• Come up with a new targeted marketing strategy.
• Find a new market for your services/products.
• Adjust your brand messaging for more effective conversions, etc.

‍Whatever it is, it’s best to be clear about this from the beginning, so you know where to focus your attention for your map.

Step 2: Decide on the Parameters That Matter

‍The next step is to choose what parameters matter for your type of data. Ideally, this should be something that your customer considers when they decide to choose your offer over the others from similar brands.

‍This could be anything:

• Price,
• Quality,
• Convenience,
• Flavors, etc.

‍Of course, you can have as many parameters as you want, depending on whether you’re making a two-dimensional or multi-attribute map. In case you forgot the difference:

• The two-dimensional focuses on two key attributes.
• The multi-dimensional has as many attributes as needed to give a more nuanced report of how your clients see you.

‍But how do you know which parameter to add?

‍Well, to ensure that your map is accurate, you really need to think about the challenges your customers or users face. This is usually a good place to start.

‍What factors may convince them to ditch your product/service for your competitors? If it’s price, then you definitely need to pick price as a parameter for your chart.

‍See how that works? Basically, the factor or attribute that motivated their choice is definitely important enough to show up on your graph.

Step 3: Identify Your Competitors

‍Knowing your competitors is a pretty big deal, as this will help your map build up a clearer picture for you and your team.

‍Experts advise that you add as many competitors as possible to make your graph more informative. You want both your direct and indirect rivals to be on that list.

‍How do you know who is who?

‍Well, your direct competitors are those who have the same or a very similar offering.

‍Then, there is a different kind of competitor to watch out for, those who are offering alternative services and products but still target the same customer group and compete for the same keywords.

‍Source: HubSpot

‍While doing your competitive analysis, it’s important not to focus on just your own strengths and advantages against your competitors. Be sure to focus on their strengths as well.

‍Your final record should include:

• A brief summary that describes your target market.
• Insights about them.
• Highlight of your product/service.
• How their marketing strategies compare to yours.

‍All of this info will come in handy for your positioning map marketing plan. Now that you have the “deets” on your competitors, it’s time to find out what your buyers are saying about you.

Step 4: Analyze How People Perceive Your Brand

‍When you know your competitors and understand your goals, the next best thing is to analyze how your audience perceives you. This gives you the information you need to figure out the best data that should appear in your map.

‍So, how do you get these insights?

‍That’s quite easy, but it takes some time. You can use several ways, including doing any of the following:

• Creating customer surveys. Great for collecting surface-level information about your consumers. It’s probably best to pair this with other data.
• Using post-purchase surveys. These can provide insights into how your clients feel and their motivations for buying from you.
• Having interviews with your customers or even the target audience (if possible). This could help you hear directly from them about any suggestions or dislikes they have.
• Checking or creating your own focus groups. This means doing research with a small group of people you bring together to discuss their thoughts and beliefs about you in a controlled environment.
• Checking customer ratings and reviews. You really want to know what they say about your product or service.
• Looking through third-party marketing data. It’s really helpful if you can find relevant, verifiable statistics and insights that apply to your business.

‍Source: Geeks for Geeks

Step 5: Quantify Your Results and Design Your Map

‍Next, you have to compile the information you’ve collected during your research for your map. Then, based on this, you can draw it up.

‍The goal is to have something that accurately reflects your customer’s perception. But don’t get too bogged down in the details. There is no need for the plotting to be precise without any room for errors.

‍Draw the chart and place your brand and the competitors where you think each belongs relative to the other. At this stage, you can also check some perceptual map examples for inspiration (if needed).

‍Source: G2

‍But how do you design yours?

‍There are tons of options. If you have a designer in-house, they can easily do that in Figma, Photoshop, or any other specialized tool based on your research.

‍Yet, if you want something quick and easy, simply google “perceptual map maker/template,” and you’ll see tons of options. You can also search for a specific type of graph if you know what you need.

‍Source: Google

‍Typically, you’ll find very beginner-friendly solutions (e.g., Canva, Creately, etc.) where you don’t really need any design skills.

‍Source: Creately

Step 6: Get Everyone on Board

‍Creating a map is one thing, but getting everyone on board is another task on its own.

‍With many eyes on your graph, you can easily come up with solutions for any situation if the insights reveal that you and your competitors are basically sharing the same marketing playbook. That means that coming up with a unique strategy might serve you better.

‍The same thing can play out if the data shows that your customer has the wrong attitude about your product/service value. If that’s the case, your team can come up with new messaging to create a better impression.

‍At any rate, the map can help shape your next marketing move. But there’s more. Yep, you read that right.

‍Some marketers also use these charts as a way to quickly onboard new hires or even convince new investors. No matter how you use it, it’s a great tool for getting everyone on the same page about the vision and goals for your brand.

‍The key takeaway from this blog is that a brand perceptual map is not only useful but also very important. While you have to put in some serious work to create one from scratch that accurately reflects your customers’ feelings about you, it’s worth it.

‍But that’s only one part of the equation. The other really important thing is what you do with the insights from that map.

‍Thankfully, you can use it in many scenarios, from creating your positioning and choosing a marketing campaign angle to understanding your weaknesses and making your offering more competitive.