What mistakes do businesses make when creating competitive positioning maps?

2 Using too many or too few competitors

The second step in creating a competitive positioning map is to identify and plot your competitors based on the criteria you selected. You should include enough competitors to cover the main players and alternatives in your market, but not so many that the map becomes cluttered and confusing. A good rule of thumb is to include between four and eight competitors, depending on the size and diversity of your market. Avoid excluding competitors that are directly or indirectly competing with you, such as substitutes, new entrants, or niche players. Also, avoid including competitors that are irrelevant or insignificant to your market, such as those that operate in different regions, segments, or categories.

3 Ignoring customer perceptions and feedback

The third step in creating a competitive positioning map is to validate and adjust your data based on customer perceptions and feedback. You should use reliable and current sources of information, such as surveys, interviews, reviews, or ratings, to measure how customers perceive and evaluate your competitors and yourself on the criteria you selected. You should also compare your data with industry benchmarks, reports, or studies, to ensure that you are using realistic and consistent values. Avoid relying on your own assumptions, opinions, or biases, as they may not reflect the reality of the market. Also, avoid using outdated, inaccurate, or incomplete data, as they may lead to erroneous or misleading conclusions.

4 Failing to update and monitor the map

The final step in creating a competitive positioning map is to update and monitor it regularly. You should review and revise your map at least once a year, or more frequently if there are significant changes in your market, such as new competitors, customer preferences, or industry trends. You should also use your map as a strategic tool to identify and exploit opportunities, gaps, or threats in your market. For example, you might use your map to launch a new product, reposition an existing product, or target a new segment. Avoid treating your map as a static or one-time exercise, as it may become obsolete or irrelevant over time. Also, avoid using your map as a substitute for a comprehensive marketing plan, as it may not capture all the nuances and complexities of your market.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?