Perceptual Maps Simulation Summary

Perceptual Maps Simulation Summary

Marketing 421

January 25, 2012

Perceptual Maps Simulation Summary

Introduction

In the simulation, one has learned how to effectively use perceptual maps of the data in various marketing situations. Perceptual maps are known as "widely used tools in marketing that provide a visual representation of customer perceptions towards objects (products, brands or companies), and how these are positioned in the marketplace"(The Marketing Analysts, 2011) One will explain the recommended solutions for the simulation as well as one's own results. One will also explain how differentiation and positioning relates to one another in the simulation. In the simulation, there was definitely an effect on the product life cycle as well.

The simulation situation

In the simulation, the company made over 200,000 motorcycles a year and the company was popular for the CruiserThorr. The main concern was that the motorcycle sales declined because of the changes in customer's base. The simulation said the Thorr motorcycles were originally appealing for an older generation and because they were over 35 now, the people in the demographic groups no longer needed or desired motorcycles. The younger generation was not aware of these motorcycles and they didn't find them appealing so this causes the demand to decrease. Another main reason they declined is because the price was expensive and people, especially younger generation, could not afford them. During this time, there is an economy downturn which influences decisions that buyers choose. The marketing aspect of Thorr Motorcycles decided to develop a perceptual map that included four parameters.

Recommended Solutions

One of the parameters that one chose was price, which is significant in any major purchase. When on ponders about price, quality comes to mind. If customers look to purchase an item such as a motorcycle and see a high price, they are inquiring why it is expensive. The Thorr motorcycles have been around for decades and if the company decreases the price, the image definitely will be affected. Another parameter one chose was services. Retaining customers is an important aspect in any business, especially a motorcycle industry. Thorr should definitely provide quality service to their customers so they can retain a loyal customer base as well as employees. Lifestyle image is a very important factor in the motorcycle industry. Motorcycles are meant to be fast and fun, and they should retain that brand image. So Thorr has to have a marketing plan to enhance the lifestyle image to they can be desirable to the newer generation. This may include using the latest technology and style. Quality engineering is another parameter that needs to be met. The motorcycle that was originally created was manufactured in the past and now newer craftsmanship has been invented so Thorr has to analyze their competitors and become unique in their motorcycles so motorcycle sales can start increasing. The company had a budget of $13,000 so one chose to market the motorcycles through the internet, distributors, and dealers. The younger generation is more computer literate and many people shop online, so a potential purchaser would be able to see the motorcycles on sale on the motorcycle website and purchase them without having to go anywhere. It would be shipped to their home and be convenient to own. The internet is time efficient way to make profit. Another way to market the motorcycles