Perceptual mapping provides insights into the existing market structure for a defined set of market options.  Perceptual mapping combines a number of defined attributes for a given set of products, in a specific competitive environment.  The mapping suggests which attributes of a product will need modification to achieve a desired change in market positioning.

Attributes-based methods are used to derive perceptual maps from quantitative and qualitative data collected from field analysis, customer interviews and surveys, focus groups, etc. The maps represent customer perceptions and preferences for a set of attributes.  There are four major steps in this attribute-based methodology:

• Step One: Identifying the set of products and attributes that will be evaluated—The competing attributes or alternatives are selected, available data and research are reviewed, and gaps identified for additional research purposes.  The attributes selected depend on the objectives of the project.  For strategic positioning studies, broad competing alternatives are chosen.  For tactical projects, the alternatives are usually close competitive attributes.
• Step Two: Obtaining perceptions data—The data for perceptual mapping is usually collected from customer surveys, interviews, and focus groups—from the defined target sample population.  The data can be organized by brand and by product.  Examples of generic attributes selected for positioning analysis include: product features, performance, durability, reliability, serviceability, style, image, delivery installation, repair, and perceived quality.   
• Step Three: Selecting a mapping methodology—There are several mapping techniques that are designed to extract and organize data about customer perceptions.  A perceptual map visually clarifies the market structure in two-or-three dimensional space. 
• Step Four: Interpreting the perceptual mapping exercise—This final step is perhaps the most important since implications about the new product’s positioning strategy will result.  The perceptual mapping activity may also generate new questions that will require additional research and analysis.

STRENGTHS: 

Perceptual mapping is very useful in four major areas of business, marketing and product strategy development:
1) the support of new product decisions, 2) a check of competitors’ market positioning for the product category, 3) the identification of major competitors and implications for how to differentiate products in a defined competitive environment, and 4) image and/or brand awareness studies.  Perceptual mapping aids the marketing or business development group to position new products competitively.

WEAKNESSES: 

Perceptual mapping should be used for diagnostic insights and not for definitive sales predictions.