Market Mapping

A useful framework for analysing market positioning is a “market (positioning) map”. A market (or positioning) map illustrates the range of “positions” that a product can take in a market based on two dimensions that are important to customers.

Choosing the dimensions for a market positioning map

Some possible dimensions for the axes of a positioning map include:

• Low price v High price
• Basic quality v High quality
• Low volume v High volume
• Necessity v Luxury
• Light v Heavy
• Simple v Complex
• Unhealthy v Healthy
• Low-tech v Hi-tech

Whilst positioning maps are useful conceptual models, care has to be taken when using them in marketing decision-making:

Advantages of positioning maps

• Help spot gaps in the market
• Useful for analysing competitors - where are their products positioned?
• Encourages use of market research

Disadvantages of positioning maps

• Just because there is a “gap” doesn’t mean there is demand for the product
• Not a guarantee of success
• How reliable is the market research that maps the position of existing products based on the chosen dimensions?