Often in the pitch deck, there is a slide on Perceptual Mapping
Never have I received a deck where any other competitor is placed better off than the proposing company. It is important to note that as the name suggests its “perception”.
Perceptual Mapping without corresponding data points does not render any information. It is there only from aesthetic point of view. A holistic and true picture shall be delivered to the investors only when
- It is prepared keeping in mind how your customers perceive your offering in relation to your competitors’ and not how you perceive your offering in relation to your competitors’
- The mapping elements are crucial in purchase decision of the target audience
- It is unbiased and all competitors are mapped
Believing, reinforcement on investors’ belief can be achieved by presenting positive aspects is a myth, indeed it backfires as it shows entrepreneurs ignorance to existing competition. As it is often quoted “Keep your friends close and foes closer”, if you do not know your competition well, how will you stride to defend yourself and out run them?
Thus competitive mapping should be done in a detailed manner using under mentioned models alongside perceptual mapping
- Segmentation
- Direct Competition – Coffee Shop A; Coffee Shop B; Coffee Shop C
- Indirect Competition – Coffee Shop; Coffee Stand; Tea Stall; Juice Bar
- Broad Competition – Coffee Shop; Movie; Go-Karting
- SWOT Analysis
- Strengths & Weaknesses – Internal Factors w.r.t competitors
- Opportunities & Threats – External Factors for the industry as a whole
- Porter’s Five Force
Illustration Credit: https://www.business-to-you.com/porters-five-forces/
- PESTEL Analysis
Illustration Credit: https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
As the enterprise grows relevance of each model increases. Though, consideration of all the models is relevant at each point of time. Thus a practice of keeping an eye out on the factors in the above models is necessitated to plan ahead and defend the current stand.
From investors’ perspective it shows how informed & well equipped the entrepreneur & the organization stands.
Next time you prepare a pitch make sure to include only relevant, appropriate, comprehensive & unbiased data from the fore mentioned models.
