A positioning map is a simple but powerful tool to help you analyze and visualize your brand's competitive landscape. It can help you identify your unique value proposition, differentiate yourself from your rivals, and target your ideal customers. In this article, you will learn how to create and use a positioning map for your business strategy.
A positioning map is a diagram that plots your brand and your competitors on two axes that represent the most important attributes or dimensions of your market. For example, if you are in the hotel industry, you might use price and quality as your axes. The position of each brand on the map reflects how it is perceived by customers on those dimensions. A positioning map can help you see how your brand compares to others, where there are gaps or opportunities, and how you can position yourself more effectively.
A brand positioning map is a powerful visual tool that can help brands understand and analyze their competitive landscape and how to improve their brand positioning. Below are tips to make the most of your brand positioning map: 1-Identify Key Attributes that define the competitive landscape in your industry. 2- Establish a scale/rating system for each attribute. 3-Plot Competitors on the map. 4- Analyze the map to gain insights into your brand's competitive landscape, and identify areas of opportunities and gaps where your brand can differentiate itself. 5- Adjust the brand strategy based on the insights gained and determine how you can leverage the brand's strengths, and address weaknesses to differentiate your brand from competitors.
1. **Define Dimensions:** - Identify key market attributes like price and quality. 2. **Choose Axes:** - Select two dimensions for the positioning map. 3. **Gather Data:** - Collect info on your brand and competitors. 4. **Plot Positions:** - Map brands based on customer perceptions. 5. **Analyze Gaps:** - Identify opportunities and gaps in the market. 6. **Strategic Planning:** - Formulate strategies to enhance your brand's position. 7. **Monitor and Adapt:** - Regularly adjust strategies based on market changes.
Creating a positioning map involves four steps: selecting a market and target segment, picking the two most relevant dimensions for your market, plotting your brand and competitors on the map, and analyzing the map to draw insights. When choosing your market and target segment, you should understand their needs and preferences. For the two dimensions, they can be functional, emotional, or symbolic. To plot brands on the map, use data from market research or customer feedback to assign a score to each brand. Then analyze the map to uncover patterns and trends in relation to your competitors. Finally, ask yourself questions such as what are your strengths and weaknesses, what are the unmet needs in your market, and how can you improve or change your position.
Creating a positioning map involves a strategic, four-step process. Firstly, by carefully selecting a market and target segment, businesses can align with customer needs. Choosing the most relevant dimensions—be they functional, emotional, or symbolic—guides the map's creation. Using data from market research, brands are plotted, offering a visual comparison. The crucial step is analyzing the map, revealing insights into strengths, weaknesses, and unmet market needs. Asking strategic questions enables businesses to adapt, improve, and effectively position themselves in a dynamic market landscape.
A positioning map can help you use your competitive analysis and positioning to inform your business strategy, such as defining your value proposition, identifying your competitive advantage, segmenting and targeting your market, and innovating or repositioning your brand. For example, you can use the map to communicate what makes your brand unique and valuable for customers, find out where you have an edge over competitors, segment the market based on the chosen dimensions, and discover new opportunities or niches in the market. Additionally, you can tailor the marketing mix to suit the needs and preferences of each segment, as well as modify or create products or services to fill them. Lastly, you can use the map to reposition your brand if you wish to change its image or appeal to a different segment.
A counter perspective would be that while positioning maps offer valuable insights, they may not be the sole driver of a comprehensive business strategy. Some argue that overreliance on a positioning map might oversimplify the strategic landscape. Factors like external market dynamics, economic conditions, and emerging trends may not be fully captured. Business strategies should also consider a broader range of variables, such as technological advancements, regulatory changes, and cultural shifts, which may not be adequately reflected in a positioning map. Therefore, while a positioning map is a valuable tool, it should be complemented with a more holistic strategic analysis for a well-rounded and adaptable business strategy.
From my perspective, a positioning map is a compass for decision-making. It guides strategic choices, be it in developing a new service or refining an existing one. For me, as a digital health strategist, it's been instrumental in aligning technology with patient needs and market demands. It's not just a static visual; it's a dynamic tool that evolves with the industry.
To illustrate how positioning maps work, let's look at some examples from different industries and markets. For instance, in the coffee market, the dimensions are price and quality. The map will show how different coffee brands are positioned on these dimensions and how they appeal to different segments, like premium, mainstream, or budget customers. Similarly, in the smartphone market, the dimensions are functionality and design. The map will display how different smartphone brands are positioned on these dimensions and how they differentiate themselves through high-end features, sleek designs, or affordable prices. Lastly, in the airline market, the dimensions are service and cost. The map will indicate how different airline brands are positioned on these dimensions and how they compete with full-service, low-cost, or hybrid models.
**Mental Model: Strategic Positioning Compass** 1. **Define Direction:** - Choose market and target segment aligning with customer needs. 2. **Coordinate Dimensions:** - Select functional, emotional, or symbolic dimensions for strategic positioning. 3. **Data Landmarks:** - Use market research to plot brands for a visual comparison. 4. **Insight Sextant:** - Analyze the map for strengths, weaknesses, and unmet needs. 5. **Adaptation Calibration:** - Ask strategic questions for ongoing adjustments and improvements.
To make the most of your positioning map, you should use data and research to support it, keep it simple and clear, and update it regularly. Base your positioning on facts and evidence, not just assumptions or opinions, and use reliable sources of data and research to validate it. Avoid using too many dimensions, brands, or variables on your map, as this can make it confusing or cluttered. Focus on the most relevant and meaningful dimensions and brands for your market and use simple and consistent labels and symbols. Monitor your market and competitors and update your positioning map accordingly. Be aware of any changes or trends that might affect your positioning, such as new entrants, new products, new customer preferences, or new regulations. Additionally, evaluate your positioning performance and make adjustments if needed.
If a dimension is not so relevant today, it doesn’t mean it won’t be tomorrow. If you are able to make it relevant for all tomorrow, and your effort is to make it impactful in the next future, then use it…
In my journey, I've learned that regular updates are key. The healthcare landscape evolves rapidly, and so should your positioning map. Also, involve cross-functional teams; diversity in perspectives enriches the map. Lastly, don't forget the patient narrative – understanding their journey is as vital as understanding market trends.
Considering the dynamic nature of the healthcare industry, staying adaptable is paramount. Embrace change, and use the positioning map as a living document. It's not a one-time project; it's a continuous process of refinement. As someone deeply committed to reshaping healthcare, it's vital to view the map as a strategic ally in this transformative journey.