Perceptual Maps – A tool that helps you get ahead of your competitor: - K.Sailesh, Roll No 12026

Perceptual Mapping is a data analysis tool that is used to represent the varying relationships that exist between one or many marketplace competitors.The mapping attempts to measure the factors that consumers use in making their purchase decisions. Using a perceptual map has become a popular tool for data analysts to use when briefing upper management on complex issues because it can represent complex relationships graphically.

Now that you have some idea on what exactly this wonderful tool is all about let me make your life simple by giving a 4 step process on how to use perceptual maps

Step1 : Select a product or service and pick three or more companies that produce the material or provide the service

Step 2: Take a piece of paper and draw one vertical line that splits the paper vertically and another line drawn horizontally which also splits the paper so that they visually look like a 'plus sign'. Now there are software like Permap to do the same, but anyways lets continue:

Step 3: Create two questions about the product or service to ask consumers. The question should directly ask questions about how company a's product compares to company b's to company c's. A minimum of six people should be asked the questions. The vertical axis of the paper drawn on in step two will represent one of the two questions and the horizontal axis the other question. This represents the perceptual map.

Step 4:

Plot the answers to the two questions on the perceptual map labeling the company's name where the consumer's answer to the question best fits the perceptual map questions.
For example, if you want to compare Ford and Cheverolet, a question might be, do you find Ford or Chevrolet vehicles more sporty? The top of the vertical axis would be labeled sporty and the bottom labeled less sporty. You would label the top of the axis Ford with the number of answers that were that manufacturer and put the number of Chevrolet answers in the applicable spot on the perceptual map.
That way you can put characteristics in each of the 4 quads and based on that you can come up with a decision on your product and beat the thinking of the competitors.
Many companies do perceptual mapping. Ive had the chance to interact with some companies and I have learnt from them that it is a very valuable tool.