Business / Perceptual Maps In Marketing

Perceptual Maps In Marketing

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Autor:  anton  16 July 2011
Tags:  Perceptual,  Marketing
Words: 1048   |   Pages: 5
Views: 387

Perceptual Maps in Marketing

Thorr Motorcycles is a company that manufactures 200,000 motorcycles a year. It also licenses T-shirts, shoes, leather goods, toys, and other consumer items. The company currently has a high-brand image manufacturing high-end motorcycles and owns approximately forty percent of market share. The challenge for Thorr is that the industry is growing, but sales of its high-end product are decreasing. The reason for this loss of market share is that the target customers of its high end product is growing older, and younger people do not identify with the brand image of Thorr. In addition, Thorr is a high product and younger people do not have the large disposable income necessary to support the brand.

Lifestyle image is an important attribute to Thorr Motorcycles, Inc. because it can influence customer to purchase a Cruiser Thorr due to what it represents. The perceptual map is a visual representation of a customer opinion of the brand. The Lifestyle Image that the Cruiser Thorr represents is freedom, masculinity, and mobility. With the decline of sales, Thorr Motorcycles will need to change the consumer image in order to bring profits to the Cruiser Thorr again. The simulation helped to construct and use a perceptual map in order to create an effective marketing plan for the motorcycle brand. With the use of a perceptual map, Thorr will be able to develop a visual representation that will act as a guide to assist the company in regaining their sales and their place in the market.

The first step in the simulation is to determine the market position of The Cruiser Thorr using a perceptual map. There are four parameters that must be selected in the simulation, and I chose Lifestyle Image, Product Design and Styling, Price, and Product Uniqueness. It appears that the size of the polygon is irrelevant because the most accurate choices were lifestyle image, service offerings, quality engineering, and price. My logic is the larger the polygon the bigger the market share. The logic according to the simulation is that the service is a way to keep loyal customers happy, and quality engineering is a necessity for a motorcycle product.

The second step in the simulation is to elect either launching a new product line or repositioning the Thorr brand. I chose to launch an entirely new product line. With the new product line, the pricing I chose will be $13,000 to $15,000 to target the younger crowd. Promotion will take place through Hollywood Films to target the younger generation. Place will be both the internet and the dealer showrooms. The Internet will allow for a greater opportunity for the product to be seen on a larger scale versus only having showroom viewings. The services lineup will include dealer training, customization options, and financial services. In providing financing options and increasing services, the organization will open doors for potential customers who may have felt that the Motorcycles were unaffordable. By providing finance options, the organization will also attract the younger people that has already shown interest in the Cruiser Thorr. This option also does not significantly raise expenditures.

The relationship between differentiation and positioning of products and services is that both relate to features of the product or service that is being offered. The repositioning of the product in the simulation was better than I expected. I had the understanding and knowledge that repositioning could help the product but in the simulation, when the product was repositioned, it was able to take off in a very successful manner. I believe that because the product was being introduced to a younger audience, it was a new product for that target audience.

The process of creating the marketing plan will give the company the tools necessary in differentiation and positioning their product, which can increase sales and gives the product have a new image. These tools also illustrates the impact that the product life cycle can have on the success of a product and will show way to refresh the image of the product and possible resetting the product life cycle to a more profitable position.

Product position refers to what the consumer thinks of the product when they are making a purchase decision. The relationship between differentiation and positioning is that both are subjective measurements to measure how different a product is in the market.

The relationship between differentiation and positioning of products and services are that both relate to the features of the product and the services that is being offered. The repositioning of the product will allow the company to increase their sales. Differentiation goes beyond segmentation and more into the other important factors of packaging, price, service, and delivery that creates extra-perceived value for customers and establishes the uniqueness. The challenge is to ensure that the repositioning benefits the company’s growth and increases sales. One of the important issues for Thorr Motorcycles is to introduce their product to a younger audience. Once this audience is interested, the marketing must revolve around methods to entice the younger customer into purchasing the product. The impact of the product life cycle on marketing is that economic conditions will force the marketing strategy to be reformulated a number of times during the products life cycle (Kotler and Keller 2006. p 335).

The impact of product life cycle on marketing is that corporations must always plan products and offerings according to the life cycle. Especially in the durable goods market like motorcycles it is imperative than a manufacturer know the product life cycle in order to maintain market share or grow. The company could have shortened the product life cycle significantly by introducing leasing options as opposed to better financing. In order to maximize life cycle revenues the company must maximize revenues and profits from all sources including warranties, spare parts, and accessories. Service is an integral part of a long product life cycle. The process of creating the marketing plan showed how differentiation and positioning a product can increase sales and helps the product have a new image. The simulation also put into illustration, the impact that the product life cycle can have on the success of a product.

References

Kotler, P. & Keller, K.L. (2006). Marketing management (12th ed.). Upper Saddle River, NJ: Perason/Prentice Hall.



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