Market mapping is a visual technique used to understand the competitive landscape by plotting competitor information on a graph.
Based on the provided reference, market mapping involves collecting information about competitors, such as revenue, growth rate and industry sectors, and then using that information to plot those companies on a graph or plot.
Key Activities in Market Mapping
The core process of market mapping includes:
-
Data Collection: Gathering specific data points about competing businesses. According to the reference, this can include:
- Revenue figures
- Growth rates
- Industry sectors
-
Visual Representation: Taking the collected data and presenting it visually. This typically means creating a graph or plot where competitors are positioned based on the chosen criteria.
Purpose and Benefits
Market mapping serves as a visual analytic technique. Its primary goals, as highlighted in the reference, are to:
- Infer Strategic Direction: Understand the paths competitors are taking.
- Identify Market Trends: Spot patterns and shifts occurring within the market based on how competitors are positioned relative to each other.
By visualizing this competitive data, businesses can gain insights into the market structure and competitor strategies, informing their own strategic decisions.
