Using Perceptual Maps in Marketing Simulation Paper

Simulation Summary

Perceptual maps can change with the needs and wants of consumers. The marketing mix has to change with these changes for a product to be successful. Relevant parameters are important for successful marketing because the parameters ensure the areas consumers believe need improvement are evaluated. A manager has to decide if repositioning a product or launching a new product would be more beneficial to a company. Offering a new product at a lower price helps the company reach a different target marker. Increasing services is important because services increase loyalty.

Overview

The new marketing manager for Thorr Motorcycles needs to implement changes in the business to build the image and brand of the company. The sales of the CruiserThorr are declining and the target market, ages 35 to 50, is not interested in the lifestyle the CruiserThorr symbolizes. The younger market, ages 21 to 35, is important to target. The younger market prefers low-cost motorcycles and does not identify with the lifestyle image of CruiserThorr (University of Phoenix).

Phase One

Situation

The first step of the marketing research is to choose the four fundamental parameters relevant to the motorcycle market. The parameters should reflect the high potential for the CruiserThorr.

Recommendations

The parameters chosen were lifestyle image, cool, service offerings, and price. Lifestyle image is important because it shows what the consumers think about the brand. The lifestyle image can be changed by promotion and advertising. Cool is important to target the younger market. Cool includes attributes of the brand including design and styling. Service offerings ensure loyalty from consumers, dealers, and distributors. Service offerings include customization, financial services, and club memberships. Price is important because price drives purchases. The younger market prefers less expensive motorcycles (University of Phoenix).

Results

Many factors make up the image of the brand. Lifestyle image influences individuals to buy into the image of the company. Quality engineering was not chosen but is important because it covers many aspects of the product. Quality engineering includes design, styling, engine capacity, and uniqueness. High image is impossible without quality engineering. Price drives purchases and normally prices cannot be lowered without changing the brand image (University of Phoenix).

Phase Two

Situation

The company is trying to decide if it should reposition the CruiserThorr or launch a new product. The positioning strategy can be enhanced or changed completely. Deciding what positioning strategy should be used if the CruiserThorr is repositioned is important. Deciding what pricing strategy to use if the RRoth is launched and the features of the motorcycle are important for the sales of the new product. The marketing mix should be decided for each product because it is important for a successful product (University of Phoenix).

Recommendations

The marketing manager decided to launch the new product RRoth because it targets the younger market. The target market for the RRoth, ages 18-35, prefer product design and styling, cool, service offerings, and price. The individuals with incomes of 50,000 dollars and above consider lifestyle image and quality engineering important. Consumers with income ranging from 30,000 to 70,000 dollars consider product design and styling, cool, service offerings, price, and engine capacity important. Financing is available to individuals in different forms. Installment plans are available for all age groups. Discounts and loan options are available for individuals 18 to 35 (University of Phoenix).

The marketing mix is important for a product to be successful. The price for the RRoth would be 13,000 to 15,000 dollars because low price is important to the younger market. The place would be the dealers, exclusive showrooms, Internet, and manufacturer's websites. Promotion is important to target the younger market. Promotion is important to reach the target market. Promotion would include training to dealers, customization options, and financial services (University of Phoenix).

The repositioning for CruiserThorr would include the marketing mix. The price would remain the same, but increasing service offerings and providing financial options is important. The place would include the dealers, exclusive showrooms, and the Internet or manufacture's website. Promotion would include hiring celebrities