Using Perceptual Maps in Marketing Simulation Summary

Marketing is a fundamental part of any business' success and businesses must create optimistic ideas to remain competitive in its market. In doing so, companies must differentiate and position itself from competitors to survive. This paper will address information from the simulation on the student website titled, Using Perceptual Maps in Marketing. It will address the situation, recommended solutions and why, and the results. It will also answer the questions, what is the relationship between differentiation and positioning of products or services? Is the repositioning of the product in the simulation as you had expected it to be and it will explain why or why not? What is the effect of the product life cycle on marketing? What effect did the product life cycle have on the product in the simulation? After reviewing the simulation and answering the questions, one will have a better understanding of perceptual maps in marketing.

The Situation

I have joined a team of marketers to construct a perceptual map to create a marketing plan for Thorr Motorcycles, Inc., which is a $5 billion motorcycle company that offers a range of motorcycles, products, and services. My team consists of Benjamin Bao (CEO), Chris Winter (Chief Engineer of Research and Development) and Meredith Killgore (Market Research Manager). Sales are declining on one product, Cruiser Thorr, because the target market, older customers, is no longer interested in what the product symbolizes. The younger generation is not equipped to purchase this product because of the price tag. My team must create a new marketing plan.

Recommended Solutions and Why

To better market a product, companies may have to reposition it. "Positioning refers to how customers think about proposed or present brands in a market" (p.110). My team must choose four out of nine fundamental parameters that are important in the motorcycle industry. I chose Lifestyle Image, Product Design and Styling, Price, and Service. Thorr Motorcycles image was once only appealing older people. Allowing customers to see the image instead of the functions of the product will influence the customer to purchase. Thorr is at the high end of pricing next to its competitors and better service will gain the loyalty of its customers. In choosing these fundamental parameters, I must decide if Thorr should reposition its marketing plan or launch a new motorcycle.

I chose to reposition CruiserThorr with the following strategies. As a positioning strategy, I chose to provide finance options and increase services. To target the younger market that usually opt for financing, offering a range of financial options would assist in the shock of the high price. Services are currently limited and offering this strategy would gain customer loyalty. In differentiating the product, I chose the following

* Price