...Perceptual Maps in Marketing Jennifer Cantrell August 5, 2013 MKT/421 In this simulation, Thorr Motorcycles, Inc. manufactures higher end motorcycles. They currently produces more than 200,000 each year. The company’s top seller is the CruiserThorr however sales have been dropping due to the aging of the company’s current target market. The CruiserThorr does not have as much appeal for the younger target markets due to the pricing strategy. Since it is a more expensive machine, the higher price tag is generally out of the younger target markets price range. To ensure profitablir introduce a new productlty, Thorr Motorcycles marketing team must develop a strategy to either reposition the CruiserThorr, or introduce a new product that will attract the younger target market. The RRoth is a potential new product that has a higher fuel-efficiency and will be targeted to younger markets. To determine which action the company should take, the simulation uses perceptual maps. To analyze the results of the simulation one breaks the sections into three: the situation, recommended solutions, and results of the marketing decision. As the company’s current target market ages, a younger target market emerges. This new target market has less disposable income than the aging target market. Competitors have already begun to target this new age group with economy-priced versions of their products (University of Phoenix, 2004). These companies are...
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...Perceptual Maps in Marketing MKT 421 Perceptual Maps in Marketing Perceptual Maps Thor Motorcycles, Incorporated builds motorcycles and motorcycle accessories. “Thor motorcycles currently produce more than 200,000 units” The company specializes in the Cruiser Thorr, its high-end motorcycle. The Cruiser Thorr helps the company maintain five billion dollar sales in its industry. Unfortunately, the current buyers are growing older, and the motorcycle is not attracting new buyers. The marketing team has decided because of the decline in sales that it must make a decision to change the marketing of the Cruiser Thorr or launch a new line referred to as the RRoth. The use of a perceptual map will be necessary to base this decision on the best move for the company. The perceptual map will be broken down into three sections. Phase I A new age group of consumers is entering the motorcycle industry. “The younger age demographic (21-35) have less disposable income and are looking for a new symbol of lifestyle with motorcycles”. [ (Using Perceptual Maps in Marketing, 2012) ] The other factor affecting sales of the Cruiser Thorr is competitors entering the market and pulling sales from Thor Motorcycles. The Anazai made by Haruhiso-Daisetsu Motorcycles and Espritiques made by Michelin Motorcycles offer consumers more services and lower prices. The fun and safer image also attributes to the loss of sales. Marketing research shows that at the current level the Cruiser Thorr rates...
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...Perceptual Maps in Marketing Thorr Motorcycles Perceptual Maps in Marketing Thorr Motorcycles is a profitable business that saw declines in sales and in customer satisfaction. The first main causes for the recent decline in sales was the target market of buyers between ages 35 and 50 are less interested in the existence that Thorr Motorcycles offers. The second cause was that people between 21 and 35 years are more interested in low-priced models of motorcycles. To prepare a positioning strategy a perceptual map was created to agree on which areas are more significant to improve those areas including the point of view of the customers. (Apollo Group, Inc., 2013). Outlining the process and examine the results to help Thorr Motorcycles to recover their reputation including the satisfaction of the customers. Perceptual Map Parameter Perceptual maps deliver a visual representation of customer opinions perceptions about a product. In this illustration four important areas to the customers of Thorr Motorcycles have to be determined one at a time to present the best demonstration of Thorr Motorcycles with their opponents, Anzai and Espritique to determine where is the need for improvement. The parameters selected for this examination is lifestyle image, price, quality engineering, and services offerings. Lifestyle imaging is a significant feature in the motorcycle industry for the reason that lifestyle contributes to the brand...
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...Running head: PERCEPTUAL MAPS IN MARKETING SUMMARY Perceptual Maps in Marketing Summary Name University Perceptual Maps in Marketing Perceptual mapping can be summarized as the discipline of comparing products based on the perception of potential customers in the marketplace. The goal of this practice is to allow product marketers to build a stronger understanding of customer viewpoints and opinions on brands, advertising campaigns, and new market offerings. By developing a visual map of customer reactions and perceptions, a company can fine-tune their overall marketing strategy and position their image relative to competitors. The week four simulations provided a detailed example of how a motorcycle company can use perceptual mapping to make decisions related to their brand and products. The Simulation In the simulation, Thorr Motorcycles offers a variety of products to the motorcycle riding community. Products were placed on a graph and compared to similar products offered by their closest competitors, which provided a visual image of the product relationships. Each scenario required the choice a solution to improve sales of the product being analyzed. The first scenario was centered on an existing motorcycle know as the Cruiser Thorr, which has been declining in sales. This would be considered an example of a product that has reached the end of the product life cycle. In the past, this product had been marketed towards an older demographic who is no longer purchasing...
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...* * * Using Perceptual Maps in Marketing * Thorr Motorcycles is a lucrative business that saw downturns in sales and customer satisfaction. The two reasons for the recent drop in sales are that the current target market of people between 35 and 50 years old are aging and are less interested in the lifestyle that Thorr Motorcycles offers and that the younger market of people between 21 and 35 years old have taken interest in less expensive models of motorcycles. To formulate a positioning strategy a perceptual map is created to decide which areas are most important to customers and improve those areas (Apollo Group, Inc., 2004). Several steps are involved in the process. Outlining these steps and analyzing the results of these decisions can help Thorr Motorcycles to regain its former popularity and continue to satisfy its customers to the fullest. Perceptual Map Parameters Perceptual maps provide a visual representation of customer opinions relating to the brand. In this instance four areas that are most important to the customers of Thorr Motorcycles needed to be determined in order to provide the best representation of Thorr Motorcycles with their competitors, Anzai and Espritique, to decide where there is room for improvement. The parameters chosen for this analysis are lifestyle image, quality engineering, price, and services. Lifestyle imaging is an important aspect in the motorcycle industry. Lifestyle imaging constitutes the branding of the product...
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...Using Perceptual Maps in Marketing Using Perceptual Maps in Marketing Using Perceptual Maps is a great way of interpreting what type of impression the buyer has of the product brand. The buyer’s information from surveys are collected as data and entered into the perceptual map. This information is used to get a better idea of how your product characteristics rate in comparison to those of the competition and to determine your products location in the market. Marketing is not just selling and advertising-it is the interaction of key players in an economic system. Marketing is crucial for free markets, because the survival of companies depends on it. To gain an edge, a company has to be different in its marketing approach to gain better positioning than its competitors. A perceptual map can have several parameters, which may overlap in their descriptions. These overlapping parameters are the artificial attributes of a product, and several of them often define a product’s fundamental parameters. An important, fundamental parameter of a perceptual map is Lifestyle Image, which is highlighted by the two-wheeler industry. For more than a hundred years, motorcycles have been promoted as lifestyle products having attributes such as masculinity, mobility, and freedom. From the first motor-driven bicycle in 1901, which cost a princely $200, the heavyweight power cruisers of today, costing more than $25,000, motorcycles have been riding high on image. Lifestyle Image has contributed...
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...Using Perceptual Maps in Marketing Krissinda Richards MKT 421 December 21, 2011 Dr. Dyrren Davis Using Perceptual Maps in Marketing In the world’s market things are constantly changing. Products are introduced, have a growth period, then it starts to decline and eventually replaced with something new.The Thorr motorcycle simulation describes how the product life cycle of the Cruiser Thorr develops and then slowly declines as time and people change. In this situation, the CruiserThorr has had a lengthy product life cycle and the know the question is should the company think of new ways to reposition the Crusier Thorr in the market to appease the next generation or come up with a newer more fashionable model to replace it. Thorr Motorcycles must determine the motorcycles position in the market using a perceptual map. This map will chart the consumer’s views about the Cruiser Thorr and help the company make a final decision. Perceptual Map In the first step of using the perceptual map is selecting the parameters in which to reposition the cruiser in the market. The optimal parameters chosen are the lifestyle image, price, service offerings, and quality engineering. The Lifestyle image is the most powerful characteristic because it is design to persuade the customer buy into the image and not the functional attributes of the product. Quality engineering covers the product design, engine capacity and design, styling and the uniqueness of the product. These are important...
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...Using Perceptual Maps in Marketing Name University of Phoenix Using Perceptual Maps in Marketing One of the marketing strategies that Thorr Motorcycles utilized is using the Perceptual Maps. Thorr Motorcycles is one of the leading brands of motorcycle manufacturers all over the world. They can manufacture up to 200,000 motorcycles a year. This move was considered as the main stimulation in their marketing campaign, which involves using various marketing strategies in order to make the company consistently competitive. Two of the components that are considered to be the strength of the marketing strategies of Thorr Motorcycles are positioning and differentiation. With positioning, the company is known to create a visual model of the consumers’ perception of their products. The Cruiser Thorr model of the company embodies masculinity, freedom, and dynamism. However, the sales rate for this model has been allegedly declining recently, and that is when Thorr realized that they need a new image for the vehicle with the hopes of increasing their profits. As part of their strategy, Thorr tapped the potentials of the students to gather information and use this to come up with a new marketing plan for the company in order to get back to the competition. The simulation done consists of three stages, and each of them will be elaborated below. The first stage of the simulation involves the assessment of the status or position of the Cruiser Thorr in the recent...
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...Perceptual mapping is a graphics that can display visually the perceptions of a customer or a future customer. The product is displayed on a graph that shows its position relative to the competition. The perceptual map will help a company identify a positioning strategy in relation to the company’s competitors. In the simulation, there were three situations that solutions were needed to be identified. In the following paper, the situation, a proposed solution, and the outcome will be described. First Situation Although motorcycle sales are rising, Cruiser Thorr, Thorr Motorcycles product, is declining in sales. The purpose for the weakening is that Thorr’s target market elderly adults are growing older and are no longer interested in purchasing the motorcycle. Youthful consumers are not willing to purchase the Cruiser Thorr. Young customers prefer inexpensive priced motorcycles subsequently; youthful consumers lack a large amount of a disposable income to dispense. Also the youthful multitude does not relate with Cruiser Thorr’s lifestyle product line. This development of diminishing sales is required to reverse sales. A new marketing design needs to be put into place that will make the Cruiser Thorr more wanted by young consumers. The four considerations that is believed will make the Cruiser Thorr desirable to younger customers are the following: Cool, Service Offering, Lifestyle Image, and Price. These four considerations as it is to believe what a younger customer would...
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...Using Perceptual Maps In Marketing Simulation Using Perceptual Maps in Marketing Simulation Thorr Motorcycles manufactures a range of motorcycles. It also carries a wide variety of accessories and products from shoes to toys. The image Thorr Motorcycles perceive is that of freedom, masculinity, and mobility. Thorr Motorcycles offers various services, for example, dealer training, dealer software packages, rentals of bikes, and rider training. Thorr Motorcycles believes in having a high brand image in the market. However, sales have declined and therefore, a new strategy must be implemented. The situation The situation for Thorr Motorcycles is the number of the CruiserThorr motorcycles decreasing. The older target customers are growing older and losing interest in riding motorcycles. The younger target customers simply cannot afford the high lifestyle motorcycles. Decisions on the marketing strategy must be made to see what can be implemented to increase sales. Thorr Motorcycles must change the position of this product rather than opting to introduce a new designed motorcycle. Perceptual maps are used to compare attributes of products and services with the competitors to mark their position in the market and this is what Thorr motorcycles will use to find the attributes needed to reach customers again. Recommended Solutions To position a strategy, steps must be taken to choose the proper fundamental parameters. First, lifestyle image is recommended...
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...Using Perceptual Maps in Marketing Paper MKT/421 Using Perceptual Maps in Marketing Paper The manufacturing company that makes more than 200,000 cycles each year is called Thorr Motorcycles. They have a prize bike called the Cruiser Thor. This is a billion dollar company which provides training and services along with software packages which come from the dealer. They also sell other cycles with other merchandise that includes shoe, leather items, helmets, etc. In addition, customers can choose to purchase more services which include motorcycle training for inexperienced riders or they have the option to rent the bike. Situations, Solutions and Results In the first situation the numbers at Thorr are decreasing due to the company having older customers and having those who have begun to lose interest. The young consumers are more interested in bikes that are not too expensive because their disposable income is not that large. Thorr must now develop a marketing strategy which will cause a reverse in the decline. The task is to determine what the position of the company market is in by working with the perceptual map. In addition, a selection of four parameters which are fundamentally significant to that industry and show the largest capability for Cruiser Thorr, is necessary. I chose Price Cool, Quality Engineering, and Lifestyle Image as my fundamental parameters. I realize that instead of choosing cool, that services offered might have been the better choice. It is...
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...Perceptual Maps in Marketing- Cruiser Thorr (Simulation Summary) MKT/421 The first phase is to identify the parameters that are important to Thorr Cruiser. The first parameter is the extent of contemporariness of Thorr Cruiser. Thorr Cruiser is not seen as modern, but as old school; there are few who would want to purchase Thorr Cruiser in the current market. So the parameter of contemporariness has been identified as important for Thorr Cruiser. The recommended solution is to maintain the current price, the bike should be publicized through Hollywood film and internet, financial services, and customization options being offered will fail unless there are visual differences in the bike Thorr Cruiser is trying to reposition. The bike should have differences which should be substantial in design, in power, controls, and steering. The bike must be seen as desirable by an average user, only then will it be repositioned. If the product is seen as different and is repositioned using price, service offering, quality engineering, Hollywood/internet advertising, and financial services, the results will be a successful repositioning among the critical parameter, namely contemporariness. The second phase is to determine whether to reposition Thorr Cruiser or to launch a new motorcycle based on the analysis of present products. The situation was that Thorr Cruiser was not able to differentiate itself from its competitors, thus it was losing profits due to its customers...
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...Perceptual Maps Simulation I found this simulation to be very interesting. First of all, it was about motorcycles, and what guy doesn't find that to be an interesting topic? Regarding the lessons it contained for marketing though, it was also interesting while still being entertaining as well. The situations it presented were realistic, while not being so overcomplicated that the material it was trying to present got lost. In the following paper I will discuss the situations from the simulation, the relationship between differentiation and positioning especially with regards to the product in the simulation, and the effect of the product life cycle on marketing again focusing on its relationship to the simulation product. Situations The first situation the simulation provided me with was a successful brand that is facing declining sales. My recommendation was to focus on Lifestyle, Quality Engineering, Coolness and Price. My results from this were good, but could have been better if instead of focusing on coolness, I'd chosen to focus on service instead. This would have allowed me to optimally position the product. The second situation was to decide on a marketing plan moving forward for Thorr motorcycles. I chose to launch a new motorcycle, the RRoth, rather that reposition CruiserThorr. I chose this because CruiserThorr is already well positioned, and to change its price or other attributes would more likely confuse customers than help to grow the brand. Furthermore...
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..."Using Perceptual Maps in Marketing" Simulation The way industries, consumers, and society in general define marketing is often very different. The definition of marketing will often very by what aspect of marketing the individual has been knowledge. For example, a customer service representative is aware of the mantaince and quality of service provide after the creation of the product. On the other hand, a marketing agent is exposed to the quality of the product, promotion, sales, prices, and advertising of a product. A person that receives a survey to obtain the indivdual’s views on a product has knowledge that the organization is seeking information to find out the views of the consumer. This essay will address some of the various definitions of marketing and the importance of marketing in organizational success. Two of the definitions will come from two different sources. The third definition will come from my own viewpoint. Marketing is the evolution of a product and service. Marketing starts with the creation of a product and goes all the way through to the continued growth, production, and success of a product. First Definition of Marketing According to the Dictionary of American History (2003) marketing is the multifaceted, systematic approach to selling goods, adopted by every business and not for-profit agency and group with a message. It attempts to optimize an organization's ability to make a profit, whether monetary (profits or donations) or electoral. Some of...
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...Perceptual Map Simulation MKT 421 Perceptual Map Simulation Introduction This paper will take a look at a perceptual map simulation of a motorcycle manufacturer which produces a motorcycle called Cruiser Thorr. A perceptual map is a visual representation of the customer’s perception of the brand, which helps in its positioning. A perceptual map can have several parameters which can overlap in their descriptions. These overlapping parameters are the superficial attributes of a product, and several of them often define a product’s fundamental parameter. (Using Perceptual Maps in Marketing, General Marketing, Retrieved from https://ecampus.phoenix.edu). This paper will look at several fundamental parameters, including lifestyle image, product design and styling, product uniqueness, and quality engineering. This paper will look at the three major phases in the simulation, Positioning Strategy, which determines differentiation based on Product, Price, Promotion, Place and Services. SWOT Analysis which looks at strengths, weaknesses, opportunities, and threats to the product brand. Finally, Market Research, which looks at Consumer preferences by age group, income group, and financing requirement. These major phases are all used to form a marketing plan. In this simulation, this writer has joined CruiserThorr as a Marketing Manager. The first step in the marketing manager’s new position is to formulate a positioning strategy by constructing...
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