A business will use a product positioning map or perceptual map to help position their products within a chosen target market. By identifying their current products and competitor products on the positioning map the business can visualize where new products should be placed within the market to either fill an identified gap or to actively compete with the competition.
All customers will chose products based on various attributes which are important to them, for example, price, quality, performance, size etc. One customer might prefer a low price product and not be too concerned with quality, another might prefer a high quality product and not be concerned about the price. The purpose of the product positioning map is to show where each product is positioned in the market based on two of these attributes.
Using the Product Positioning Map Calculator
The Excel product positioning map calculator, available for download below, produces a perceptual map based on two attributes for up to ten products, and is used by entering details as follows:
1. Enter the Product Positioning Map Title
Enter an appropriate name for the product positioning map.
2. Enter Product Attributes
Enter two product attributes on which to base the positioning map. Attribute X refers to the attribute plotted along the horizontal X axis of the map, and attribute Y refers to the attribute to be plotted along the vertical Y axis of the map.
For example for a high tech product performance and size might be important, or alternatively price and quality might be the attributes which are most important in identifying customer target markets. In this case enter ‘Price’ next to the attribute X heading and ‘Quantity’ next to the attribute Y heading.
3. Enter Product Name
Enter a suitably descriptive name for each product.
4. Enter Product Attribute X
For each product enter a whole number value between 0 and 10 representing the value of attribute 1. For example, if attribute 1 represents the price of the product, then 1 might represent the lowest price product and 10 the highest price product.
A higher value will position the product toward the right hand side of the map.
5. Enter Product Attribute Y
For each product enter a whole number value between 0 and 10 representing the value of attribute Y. For example, if attribute Y represents the quality of the product, then 1 might represent the lowest quality product and 10 the highest quality product.
A higher value will position the product toward the top of the map.
6. Enter Size
For each product enter a whole number value between 0 and 10 representing the relative size of the market segment for the product. In this case 1 represents the smallest market segment and 10 the largest. The value will dictate the size of the circle and therefore the market segment shown on the map.
The calculator will now produce the product positioning map for the ten products based on the two attributes chosen.
Product Positioning Map Calculator Download
The product positioning map calculator is available for download in Excel format by following the link below.
The use of a product map when producing financial projections allows a business to develop its financial plan and make decisions regarding product research and development and marketing.
Users use this product positioning map calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a positioning map template that you might use when preparing financial projections in Excel. It is purely illustrative of a perceptual map template. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the market map calculator template, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.