hbr article

Question 1

whats a cd map

Answer 1

Marketers have always had to balance centrality (being representative of a category, like Coca-Cola in soft drinks) with distinctiveness (standing out, like Tesla in cars). Traditionally, perceptual maps and performance analyses were separate. T

Question 2

Striking the right balance between centrality and distinctiveness is critical,

Answer 2

because a company’s choices influence not just how the brand will be perceived, but how much of it will be sold and at what price—and, ultimately, how profitable it will be.

Question 3

To find gaps in the market and understand how people feel about their brands , marketers use

Answer 3

perceptual positioning maps, which represent consumers perceptions of brands on different dimensions

Question 4

Centrality distinctiveness map:

Answer 4

thej first tool that allows companies to directly connect a brands position on a perceptual map with business outcomes such as sales and price. Using the tool, managers can determine a desired market position, make resource allocation and brand strategy decisions, track performance against competitors over time, and evaluate strategy on the basis of results.

Question 5

Creating a c-d map: i

Answer 5

identify the geographic market of interest and the customer segments to be surveyed . the company then conducts a survey to collect data on consumers perceptions of the brand on centrality and distinctiveness
centrality is on the horizontal
dsictuvness is n the vertical
create circles that are sized according to brand perofmasncd

Question 6

Where a brand falls on the map has implications for

Answer 6

sales, pricing, risk, and profitabilitym can als make important strategic assessments

Question 7

what are the four quadrants

Answer 7

unconventional
aspirational
peripheral
mainstream

Question 8

Peripheral brands

Answer 8

Peripheral brands have little to distinguish them. They are unlikely to be top of mind or the first choice for most consumers
Follow a me too strategy
Consumers buy them as substitutes because they like the low prices and dont really engage with the category
They dont have as much volume as conetral brands or the price premium of distcive brans
this can be a viable position for brands with business models that call for low marketing and innovation costs—such as generic or private-label players in the pharmaceutical and grocery industries.
Peripheral brands may attempt to shift their positioning by adding distinctive features or launching advertising campaigns, but this is an uphill and expensive battle
peripheral brands are more likely than brands in the other quadrants to exit the market (Pontiac and Saturn are examples), but their low-cost business models can be designed to fortify their relatively uncompetitive positions

Question 9

unconventional

Answer 9

n the upper-left quadrant are unconventional brands—those with unique characteristics that distinguish them from traditional products in the category. Ex: tesla, mini and the smart car
Niche
Profabikity at low volumes
To be more central, may have more unique features

Question 10

Aspirational:

Answer 10

Because aspirational brands are both central and distinctive, companies can take advantage of high sales volumes and premium pricing. High centrality, high distinctiveness. These trusted brands are well positioned to launch innovations that redefine the category. They defend themselves against challenges from mainstream

ex: tesla

Question 11

Mainstream:

Answer 11

Mainstream brands build their central position through careful engineering and product development to align with (or even shape) popular tastes and through heavy advertising to make the brand synonymous with the category.
They avoid rocking the boat, can shape markets and consumer preferences . receive challenges from peripheral and unconventional products

ex: mainstream,

Question 12

applications of cd mapping

Answer 12

1) assess your brands positioning strategy
2) track competition
3) manage your brand portfolio
4) manage global brands
5) track and analyze results

Question 13

asses your brands positioning strategy

Answer 13

Measuring customers’ perceptions of a brand’s distinctiveness and linking that statistically to performance provides an instant check on a strategy’s effectiveness.
Companies can then use the tool to assess whether strategy adjustments are having the desired effect on business performance.

Question 14

track the competition

Answer 14

C-d maps track competition unlike conventional maps
C-D maps overcome this sort of challenge because they reveal a brand’s location relative to others in a way that reflects consumers’ mental representations of the category. This helps focus competitive efforts on actual rather than perceived competition.

Question 15

Manage your brand portfolio

Answer 15

Because C-D maps can be made for any brand in any category, they allow companies to compare brand performance and strategy across categories.
Thus a company that sells multiple brands of different product types could use the maps to allocate resources objectively across categories
Using C-D maps, it could estimate the amount of marketing resources to allocate to each brand (after controlling for category size and advertising expenditures) to achieve a given objective—

Question 16

Manage global brands

Answer 16

Many companies that attempt to manage global brands in a standardized way find themselves stymied by differences across markets. C-D maps offer a way to visualize differences in consumer perceptions and in performance across markets
First, it helps a firm set realistic performance goals for a global brand across geographical markets.
Second, it helps explain differences in cross-border performance.
it helps global managers make decisions about brand standardization versus localization

Question 17

Track and analyze results

Answer 17

Managers often struggle to quantify the impact of their marketing efforts on consumers’ perceptions. The two dimensions that C-D maps track—centrality and distinctiveness—are shared by all brands and remain relevant over time.
By repeatedly charting the position changes that result from marketing initiatives, marketers should be able to gauge how their (and their competitors’) actions affect consumer perceptions
The more frequent the mapping, particularly in categories that have a lot of innovation and market churn, the clearer the resulting picture
Where a brand sits on the map isnt permanent → the position reflects the firms strategy, capabilities, nature of the markt
Brands can move over time
Unconcenbtinal brands may try to be more central like tesla hat started mre niche
Peripheral brands may become mpre mainstream to grow sales like kia
The value of the c-d map lets managers: see the current pisitiob of the brand, consider the risks and rewards of trying to shift, track progress over time