Understanding Creating a Perceptual Map for Competitor Mapping

A 2x2 matrix in perceptual mapping is nothing but simply a Cartesian plane, where each quadrant or square represents a specific group of competitors. The axis in the map plays an extensive role. The parameters of the axis help to decide your position in the marketplace.

In the next video, you will see examples of the 2x2 matrix and its applications.

In this video, you learned about perceptual mapping through various examples. Let’s understand more about perceptual maps by considering the example of OTT platforms. Let the dimensions be high price and low price on the x-axis and wide choice and limited choice on the y-axis. 

Before creating the perceptual map, let’s list some OTT platforms:

1. YouTube

2. Netflix

3. Amazon Prime

4. Hulu

5. Disney + Hotstar

6. Pluto TV

7. HBO Max

Let’s place them in the perceptual map to determine their marketplace.

The platforms have been segmented as per their properties; for example, Netflix is expensive but has a wide variety of content and entertainment in terms of the latest movies and TV series, etc.

This way, we can categorize these platforms in their respective quadrants. However, they can be segmented on the basis of several parameters, two of which have been mentioned above, and a couple of additional parameters have been listed below:

1. High quality vs low quality

2. Large number of subscribers vs small number of subscribers

As you saw, perceptual mapping is the visual representation of your product’s characteristics relative to your competitors’. Sometimes, an Excel document is also used to represent the columns. It is one of the most popular tools to show the position of your marketplace, brand, or service mapped with that of your competitors. Hence, it is also called a positioning map.

Perceptual mapping is a three-step process:

Step 1: Identify the two most important parameters that you will use for the comparison. These two parameters will represent the x and the y-axes.

Step 2: Plot and determine the quadrant or segment in which your and your competitor’s product fit.

Step 3: Analyze your market positioning and ways to improve your positions and marketing strategies.

In the next segment, you will learn how to shortlist the best ideas and products to compete.