What are positioning maps, and how can they be used in practice? Let’s dive into this in today’s post!
What is a positioning map?
All companies and brands hold a position in consumers’ minds based on their identity and value.
When consumers choose which company to approach for specific products or services, their decision is influenced by the position they associate with that company.
However, consumers rarely consider only one company; instead, they subconsciously compare multiple brands and their individual values.
In essence, positioning reflects a company’s value and identity relative to competitors.
Positioning maps can serve as a tool to analyze and evaluate where a company stands—and where it aims to stand in the future—in terms of identity and value in customers’ perceptions.
The goal of such an analysis is to craft the identity the company wants to project in consumers’ minds.
Achieving this can enhance the company’s visibility and is crucial for developing marketing strategies that effectively target the desired audience.
How positioning maps are structured
Positioning maps are visualized as a classic coordinate system with an X-axis and Y-axis.
The company has the flexibility to choose the elements represented on these axes.
Commonly, elements like price and quality are used. This allows a company to evaluate its position relative to competitors on these parameters, such as price range and quality.
When selecting parameters for the map, it’s important to consider what differentiates the company and brand from others.
Examples of additional parameters that could be used in a positioning map include:
- Service level – Does the target audience perceive a high level of service?
- Sustainability – Is the company’s sustainability agenda aligned with the target audience’s perceptions?
- Demographics of the target audience – Does the company’s segmentation align with how the target audience views them?
Why use positioning maps?
Firstly, analyzing a company’s position in the market provides an opportunity to critically assess its identity and marketing strategies.
Understanding how the target audience perceives the company can yield valuable insights, helping narrow marketing efforts to make them more relevant to consumers.
Positioning maps enable companies to evaluate both how their audience currently perceives them and how they wish to be perceived.
Based on this, positioning maps can help businesses map their current position while identifying strategies for achieving their desired future positioning.
Companies should ask themselves which parameters are most relevant and use these insights to craft the branding strategies that will shape the desired perception.
Comments