productspace

Productspace refers to the conceptual multidimensional space where all possible products can be located. Imagine a graph with axes representing different attributes or features of a product, such as price, quality, size, functionality, design, and target audience. Each product can then be plotted as a point within this space, based on its specific characteristics.

The concept of productspace is useful for understanding market dynamics and competitive landscapes. Companies can analyze the productspace to identify gaps or underserved segments where new products could be introduced. By mapping their own products and those of their competitors, businesses can gain insights into market saturation, potential for differentiation, and opportunities for innovation.

For example, in the smartphone market, axes could include screen size, battery life, camera resolution, and price. A high-end smartphone might occupy a position with a large screen, long battery life, high camera resolution, and a high price point. Conversely, a budget smartphone would be located in a different region of the productspace, characterized by smaller screens, shorter battery life, lower camera resolution, and a lower price. Understanding where a product sits in this space helps in strategic decision-making regarding product development, marketing, and pricing.