Using Perceptual Maps in Marketing Simulation Summary Melinda Roberts MKT/421 December 15, 2011 Gray Grubb Using Perceptual Maps in Marketing Simulation Summary In the simulation I was a marketing manager for Thorr Motorcycles. I was faced with three different situations. In order to decide on the right actions to take in the situations I had help from three co-workers; Benjamin Bao (Chief executive officer), Chris Winter (Chief engineer), and Meredith Kiligore (Vice President Brand communication). This paper will reflect on the situation individually, my decision, and the suggested advice.
The simulation helped show the relationship of differentiation and positioning. Differentiation is how the product is different from their competitors. CruiserThorr is different in many ways such as price and the lifestyle that comes with that motorcycle. Whereas, positioning is how a company position itself in the market. CruiserThorr is positioned as a high class motorcycle in the market. Even repositioning the product did not change this. I thought it would stay the same or get worse. However, by providing financing and other options the CruiserThorr improved their position in the market.
As shown in the three situations. Situation one For the first situation I had to look at different information and decided on a new marketing plan for the CruiserThorr. CruiserThorr needs a new marketing plan due to a decrease in sales because the target market is getting old and the younger target market looks for cheaper motorcycles to buy. The CruiserThorr sells for $25,800 and provides a certain lifestyle for their customers. After looking at all the information I had to decide on four elements to apply to a perceptual map to show where the CruiserThorr is compared to the competition; Anzai, and Espritique.
I first looked at the competitor product comparison which showed that CruiserThorr had superior engine design however was at the top of selling price. Then I looked at the marketing research which showed that the CruiserThorr was at the top on lifestyle image. However, Espritique was on top with price. That is why when I went to choose the parameters I went with lifestyle image, quality engineering, product uniqueness, and product design and styling. The results of my decision were not totally correct. Two of the four where fundamental parameters (lifestyle image, and quality engineering) but I should have choose price and services.
Price is important because it helps customers decide what to buy. Service is important because it is what customers look at to stay loyal to a brand. Below is how the perceptual map should have looked compare to what I decided. Situation Two After deciding on the parameters of the perceptual map I had to decide on wither reposition the CruiserThorr, or launching a new motorcycle, RRoth. I looked at all the information that was provided and decided on repositioning the CruiserThorr. Once I decided on that I had to create a marketing plan using up to thirteen million.
I spent about 10. 2 million on the marketing plan. The marketing plan looked like this: Positioning – provide financing options and increase services Price- maintain price Place- dealers, and internet at the manufactures web site Promotion – sponsor event, free test drives, publicize through Hollywood films, and giveaway merchandise Services – train dealers, customization options, and financial services According to the performance review I choose the right variables for CruiserThorr. With providing financing it makes it an option for the younger generations to afford.
In addition, not reducing the price helps keep the image string. In this situation I was able to better see how the product life cycle is effected in the market. Product life style is how visible the product is in the market. That is why product life cycle affects the marketing strategy. If the product is disappearing then the product life is short, like floppy disk. For CruiserThorr the product life is already known in the market, so it did not affect the market strategy. However, if I had to decide to launch the RRoth the product life would have affected the product life because of RRoth is a new product.
Situation Three For the last situation I had to take the customers surveys and create date to place on a perceptual map. After the data is plotted, the perceptual map with show if the CruiserThorr has been successful or not in the last year. For lifestyle I felt that the lifestyle was higher than then the competition so I went with an 8. Research has showed that CruiserThorr price is higher than the competition so for that I went with 5. Then for quality I went with 8 and service offerings a 6. When reviewing the information I found that lifestyle should have been 9.
With the service options and the brand CruiserThorr has been able to maintain the lifestyle that was created in the start. Then service offering should have been 7. Conclusion CrusierThorr is a well-known motorcycle that target market has been getting older causing a loss in sales. In order to gain back the sells that they have lost I had to do three situations. From those situations I saw how the CruiserThorr was doing compared to the competition using a perceptual map, and from that data I decide to reposition the CruiserThorr.
A perceptual map shows a company how they are doing verse there competition. After one year I saw how the company was doing. Marketing strategy is important to help a company be successful, and this simulation helps show that. Reference Kerin, R. A. , Hartley, S. W. , Berkowitz, E. N. , & Rudelius, W. (2009). Marketing (9th ed. ). New York, NY: McGraw Hill. University of Phoenix. (2011). Kudler Fine Foods [Multimedia]. Retrieved from University of Phoenix, MRK/421 website.