Perceptual mapping of competing brands in the automotive industry

Perceptual map is a marketing tool that is used to help place a brand in context of its competitors in terms of public perception of the brands with respect to critical industry variables (Daye, 2009). The two-dimensional nature of the map means that there are two dimensions (elements) that are evaluated. Consumer opinions about these variables and a variety of brands are taken in order to construct the map. The objective of the perceptual map is to understand how the brand's position in perceived by the public, and use this information to shape marketing strategy either to reinforce this perception or to change it.

Two major variables that people consider when purchasing a vehicle, other than price, are safety and prestige. For car buyers, safety is an important issue because of the inherent dangers in driving and the need to minimize the risk to yourself and your family. Prestige is also a major consideration as well, since people like to buy the car that puts them in the best light. While there are some buyers who are strictly focused on functionality, most people prefer cars with styling that they find attractive. Using these two dimensions, four automobile companies were tested -- BMW, Honda, Ford and Mercedes-Benz. A survey was put forth to five people to rank these companies on a perceptual map scale of -5 to 5. In the survey, -5 was defined as poor and +5 was defined as excellent. The responses were averaged to deliver the following perceptual map:

This perceptual map shows that BMW has a relatively favorable position within the market, but that it lags Mercedes-Benz, which is a direct competitor. Consumers graded Ford as having the lowest prestige and the lowest safety, something that might reflect events in the past (the Pinto) and perceptions of American automobile brands in general. Honda scores better on both counts. While its safety score is aligned with that of BMW and Mercedes, its prestige score is significant lower, reflecting its mainstream status. BMW, however, should be concerned that its prestige is below that of direct competitor Mercedes, as this will affect not only sales, but the ability of BMW to price its cars effectively.