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4
ME Basics 1
ME Basics 2
1
Generic Positioning Strategies:
u Roomy
u Singapore airlines
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To Position Products
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2
A Perceptual Map
products, that is, how close or far apart the products are in the
minds of customers.
(2) A vector on the map (shown by a line segment with an arrow)
indicates both magnitude and direction in the Euclidean
space. Vectors are usually used to geometrically denote
attributes of the perceptual maps.
(3) The axes of the map are a special set of vectors suggesting
the underlying dimensions that best characterize how
customers differentiate between alternatives.
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Budget Premium
Michelob
Miller Lite
Pale Color
On a Old Coors Light
Budget Milwaukee Light Light Popular with Women
Light Less Filling ME Basics 6
3
Perceptual Maps Facilitate Decision Making
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4
Mapping Methods in Marketing
Positioning 8
Attribute-based methods
4-steps:
1. Identify the set of competing alternatives (products) and the
attributes on which those product will be evaluated.
2. Obtain perceptions data and organize it into a matrix
representing customer perceptions of each alternative on
each of the pre-specified attributes.
3. Select a perceptual mapping method. The method used in the
software accompanying this book is called MDPREF. It
relies on a factor-analytic approach derivation of perceptual
maps.
4. Interpret the output of the perceptual mapping method used.
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5
Perceptual Maps
Using Attribute Ratings
Example: Evaluation of New Laptop Concept with Longer Battery Life
G Select a set of laptop computers of interest to the target group (including the
new concept). (e.g. IBM, Toshiba, Toshiba_new, Compaq, NEC, Dell)
G Ensure that consumers are familiar with the laptops (e.g., through video
presentation).
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Perceptual Maps
Using Attribute Ratings
Step 2: (Obtain perceptions data and organize it into a matrix)
Dell 320N
C2 TI Travel mate
Toshiba concept
G Compute average ratings of each brand on each attribute.
Step 3: (Select a perceptual mapping method)
G Submit data to a suitable perceptual mapping technique (e.g., MDPREF
or Factor Analysis).
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6
Factor Analysis
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A Pictorial Depiction of Attribute-Based
Perceptual Mapping
G Alternatives Factors
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8
G Attributes that are both relatively important
and close to the horizontal (vertical) axis
help interpret the meaning of the axis.
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Toshiba
IBM Sanyo
Compaq
TI
AST Exec
Dell
NEC
Samsung
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9
(This slide shows only the attributes)
Expandability
Distinct
Unsuccessful Elegant
Avant-Garde
Heavy
Fast operation
Reliable
Good design
Difficult to use
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Expandability
Toshiba
Distinct
Unsuccessful New Concept
Elegant
Avant-Garde
Heavy
Fast operation
Reliable IBM Sanyo
Compaq
TI Good design
AST Exec
Difficult to use
Dell
NEC
Poor setup Value
Samsung Graphics
Screen quality
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10
10
Joint-Space Maps
Increasing
Preference
Preference Preference
Decreasing
Preference
Ideal Point
Attribute Attribute
(e.g., sweetness) (e.g., quality,
service speed)
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Ideal
Point (I)
d IA
d IB
A
B
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Incorporating Preference Maps:
Vector Map
Expandability
Toshiba
Distinct
Unsuccessful New Concept
Elegant
Avant-Garde
Heavy
Fast operation
Reliable IBM Sanyo
Compaq
TI Good design
AST Exec
Difficult to use
Dell
NEC
Poor setup Value
Samsung Graphics
Screen quality
Preference
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12
12
Mapping Preferences
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- G20 is closer to BMW and Saab than to Toyota
- It is perceived as attractive, successful, high prestige, quiet and roomy
- In the overall segment customers prefer the BMW or Saab on Infiniti G20
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that would rsult in a 6.67% market share under first choice rule
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Exercise #5: Positioning the Infiniti G20
Question 1
Describe the two (or, if applicable, three) dimensions underlying the perceptual maps that you
generated. Based on these maps, how do people in the market perceive the Infiniti G20 compared
with its competitors?
Question 2
Which attributes are most important in influencing preference for these cars in the three segments
(S1, S2 and S3) shown on these maps? To which segment(s) would you market the Infiniti G20?
How would you reposition the Infiniti G20 to best suit the chosen segment(s)?
Briefly describe the marketing program you would use to target the chosen segment(s)?
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