One way to do this is by using a "market map". This is a "map" or a visual representation of where your competitors or customers are based on two different dimensions:

Examples of dimensions:

• High price vs. Discount
• Low quality vs. High quality
• Low volume vs. High quantity
• Necessity vs. Luxury
• Easy vs. Heavy
• Simple vs. Complex
• Low-tech vs. High-tech
• Young vs. Old
• Man vs. Woman

Below you see an example of an illustrated market map. The map shows one possible way to map the chocolate bar market against two different dimensions: Quality and price

Source: https://www.tutor2u.net/business/reference/marketing-market-mapping

How to use the card?

One option is to identify where there are "gaps" in the market. That is identify where on the map, customer needs and wants do not meet.

Eg. Devine Chocolate, in the map above, has identified that there were customers willing to pay a higher price for chocolate made from Fairtrade cocoa. Premium Chocolate has taken advantage of the fact that there is also a market for organic chocolate at a high price. Both of these brands are in the high quality / high price quadrant.

When using market mapping, it is important to ensure that market research confirms that there is actually demand for products in the "gap" you have identified. There can be many good reasons why your customers do not want to buy a product that could fill an identified gap.

Combined Market maps

Sometimes you also see combined market maps that both illustrate product categories and the preferred wishes or needs of different market segments. Here you plot both the different product categories and customer segments into the map based on the same two dimensions.

This means that the company gets a better picture of how their products are positioned in relation to their various target groups.

You can see an example below:

Advantages and disadvantages of using market mapping:

Advantage:

• Helps identify gaps in the market
• Good at analyzing competitors
• Encourages market research

Disadvantages:

• Just because there is a “gap” does not mean there is demand
• Not a guarantee of success
• How reliable is your market research?