...Using Perceptual Maps in Marketing Simulation Summary Perceptual maps advance a company’s existing product on the market by mapping customer expectation of the product. The motorcycle company Thorr Motors perceptual maps were used to create a marketing plan to help maintain a high trademark image of the company’s motorcycles. The Marketing Dictionary (2010) definition of perceptual maps is a “process by which consumers' perceptions of an existing product are charted.” (2x01) The sales of the Thorr Cruiser are decreasing. The reason this is occurring is that Thorr’s Cruisers target customers are getting older and are starting to outgrow the means of what the Thorr’s cruisers represents. Younger customers do not see themselves with a Thorr cruisers lifestyle image because they are most interested in cheaper motorcycles because of their low incomes. The scenario for Thorr’s Cruiser’s wanted to determine the position in the market by choosing four relevant parameters that will reflect the highest potential. For phase one the parameters that were selected were lifestyle image, services offered, price, and quality engineering. Lifestyle image was selected because the image for the Cruiser Thorr was being outgrown by the period target audience and was not identifiable with younger customers. The lifestyle image for Thorr’s cruisers is already set important information collected is helpful to keep image to satisfy both older and younger customers. Another parameter chosen was...
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...Using a Perceptual Map for Thorr Motorcycle, Inc. MKT/421 March 25, 2013 Perceptual Map Company Bio Motorcycles have been marketed as the masculine, mobility and freedom machine since the early 1900s. Crusier Thorr is no different. It is a high-powered, efficient motorcycle modeled after the God of Thunder himself. Cruiser Thorr is prized for it strong, honest and dependable product design; however, with the changing demographics of its target market, the company has hired a new Marketing Manager to re-market the high-end bike to a younger market. This paper will describe the decisions made by the new marketing manager and the company’s attempt to re-invent their marketing strategies to push this bike into a demographically challenging market. The Situation An important attribute to Thorr’s Motorcycle, Inc. is Lifestyle Image. Lifestyle image creates the need for customers to purchase the line “Cruiser Thorr” because of the masculinity and freedom it represents. The perceptual map is a visual description of a customer's perception of the brand. Thorr's motorcycles were positioned as high-priced and that perception did not fit the market for younger consumers that have less money to spend then mature consumers. Thor began to see a decline in its market position due to the escalated price and the life style image presented was targeted toward the older generation. Considering the decline in sales, Thorr’s Motorcycles, Inc. had to make changes to the image it projected...
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...Using Perceptual Maps in Marketing Simulation Summary Jody Dentiter MRK/421 April 16, 2012 Kelly Duman Using Perceptual Maps in Marketing Simulation Summary Perceptual maps in marketing help a company to know the expectations of a customer in relation to a product that company is marketing. This is true of existing and possible future products. In the simulation, the discussion reflects whether the company Cruiser Thorr will revamp the marketing on the existing motorcycle Thorr, or start a new marketing plan for the new motorcycle RRoth. Although the motorcycle Thorr was once in demand, sales are dropping mainly because of the high price and age range of motorcycle riders at this time. Cruiser Thorr Incorporated must make a decision regarding which motorcycle to concentrate marketing money. The simulation’s purpose is to let Cruiser Thorr Incorporated know which to choose. In addition, the discussion’s focus includes the situation in the simulation, recommended solutions, and the result of the simulation. Further, the paper compares the relationship between differentiation and repositioning of products, if the repositioning conclusions in the simulation were as expected, and the effect on the product life cycle had on marketing and if product life cycle had effect on the product in the simulation. As one can see choosing which product to market is as important as the product itself. The perceptual map proved informative regarding what a consumer...
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...Perceptual Maps Marketing MKT/421 Perceptual Maps Phase 1 – Description – Where is the Thunder? In this phase the marketing manager, SARA needs to reverse the latest trends in the market with a new marketing plan. Before doing so, she needs to know and understand where Cruiser Thorr’s position in the market. SARA needs to choose the four fundamental parameters that are most relevant to the motorcycle industry and that reflect the highest potential for Cruiser Thorr. Phase 1 – Recommended Solutions SARA chose the following four parameters in the simulation: • Service Offerings • Price • Engine Capacity • Safety SARA chose these four parameters because, according to the market research ratings, Cruiser Thorr scored very low ratings in these categories. Cruiser Thorr is already strong in the other parameters and to be the best, Cruiser Thorr needs to improve their weakest attributes in the business. Her intention is to better the weakest links of Cruiser Thorr. Service Offerings are an easy way to keep our consumers interested once a purchase has been made. A competitive price allows our consumer market to expand. Engine Capacity is important in the motorcycle industry and “usually, the bigger the engine, the higher the brand image” (University of Phoenix Student website, 2012, Phase 1). Safety is important because we want the trust of our consumers and want to keep them as safe as possible. Results and recommendation from the simulation. The simulation stated...
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...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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...MKT/421 May 4, 2012 Perceptual Maps Simulation Introduction While taking the simulation an individual can learn how to use the perceptual maps of marketing to their advantage in different markets. The maps are identified by way of “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) The paper discussion will explain the suggested results for the simulation in addition to individual outcome. The positioning and differentiation will also be explained and how they relate to the perceptual map simulation. While taking the simulation one could see that the product life cycle was effected during scenarios. Simulation The motorcycle company produced over 200,000 motorcycles a year and the most popular one is the Cruiser Thorr. Major problem came when the customer base started to change and the sales started to decline. The reason for the decline in sales is the demographic the motorcycle company decided to target. They decided to target the older generation and priced the Thorr too high for the younger generation. Being that the motorcycle company decided to market to the more mature demographic the company did not focus their marketing on the younger generation thus they were not even aware of the motorcycles. That decision had a great effect on the sale of the motorcycles. Only targeting the older...
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...Perceptual Maps in Marketing Simulation Summary Thorr Motorcycles, Incorporated manufactures various models of motorcycles, and is a $5 billion company. The CruiserThorr power cruiser model provides the company a high brand image in the market, but sales are decreasing. The company contributes the decline to the aging target customers who purchase the cruiser as a lifestyle symbol, and the high cost of the motorcycle. Thorr must reverse the falling sales by developing a marketing plan with the use of a perceptual map that differentiates from competitors, and clearly position the company (University of Phoenix, 2004). Phase One In the University of Phoenix simulation (2004), “a perceptual map is a visual representation of what the customer thinks of a brand.” The map can have numerous axes, which each represent a product characteristic, and illustrate the customers’ opinion may differ from what the company is striving to advertise. The perceptual map can also compare a product’s position with competing brands, and associate the information with sales amounts to determine market strengths. The first step in preparing a perceptual map for the CruiserThorr motorcycle is the selection of four essential parameters that are applicable to the motorcycle industry and reveal the maximum potential for the cruiser. Market research ratings from a sample of 320 motorcycle riders from ages 20 to 50 years, show customers consider the CruiserThorr’s strengths in comparison with two competitors...
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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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...Using Perceptual Maps MKT/421 4/27/2014 Marc Mcclintock Using Perceptual Maps Thorr Motorcycles is a company that manufactures 200,000 motorcycles a year. It’s a very high end brand and known for its quality products including T-shirts, shoes, leather goods, toys, and other consumer items. In this economy were things are currently changing Thorr is affected by a growing industry, but sales of its high-end motor cycle is decreasing. The reason for this loss of market share is that the target customers of its high end 2 wheeler is growing older, and younger people do not identify with the brand image of Thorr. The Situation CruiserThorr needed a makeover to appeal to a younger customer and increase sales. The older bikes that are utilized by existing consumers are more expensive and not selling due to the target market getting old. The first step in the simulation is to determine the market position of The Cruiser Thorr using a perceptual map. There are four parameters that must be selected in the simulation, and I chose Lifestyle Image, Coolness, quality engineering and Product Uniqueness. It appears that the size of the polygon is irrelevant because the most accurate choices were lifestyle image, service offerings, quality engineering, and price. My logic is the larger the polygon the bigger the market share. The logic according to the simulation is that the service is a way to keep existing customers pleased, and quality engineering is a necessity for a motorcycle...
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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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