Using Perceptual Maps in Marketing Simulation Summary The situation consists of me constructing a perceptual map to create a marketing plan for Thorr Motorcycles. The perceptual map will be based off of parameters fundamental to the product and significant to the customer. I am the marketing manager for CruiserThorr. We are trying to use the parameters to market a new and innovative motorcycle to meet the needs of the target market. The parameters I have to choose from are lifestyle image, product design and styling, coolness, product uniqueness, service offerings, price, engine capacity, safety, and quality engineering.
The parameters that I picked and felt were the most appropriate to market a new motorcycle were product design and styling, service offerings, price, and quality engineering. I chose product design and styling because often what the customer sees influences what they buy. Customers want products that are appealing to the eye and what better way to do so than by making sure that the product is new, cool looking, and gives off the impression that the product is amazing. Service offerings are an essential element of any motor vehicle operation because they will need to be serviced every few months.
Whether it be tune-ups, oil changes, or tire changes it is important to offer those services to customers. So naturally it makes sense to offer services such as maintenance, customizations, training courses, or financial services to customers. This helps to build loyalty and a customer fan base. “Price is the most important attribute of a product, because it drives purchase decisions in most cases (University of Phoenix, n. d. ).
The Essay on Information Technology Products Services
A key strategic use of Internet technologies is to build an E-business, which develops its business value by making customer value its strategic focus. An E-business enterprise uses Internet, intranet, and extra net E-commerce websites and services to keep track of their customers preferences; supply products, services, and information anytime, anywhere; and provide services tailored to the ...
” I suggested that the market team should decrease the price while increasing the style of the motorcycle to appeal to the target population.
While price is important if the price is too high sales will be low, but if the price is too low the revenue the company will bring in will not be enough to support the product. I suggested that the price should be median and appropriate for the average purchaser. The price should not be too high and not too low and we should offer different payment plans to customers. “Quality engineering covers all the aspects of manufacturing from sourcing the best material to high-quality production to superior styling (University of Phoenix, n. d.
)” The product or motorcycle in this case cannot be successful without this important attribute because it incorporates everything such as design, engine capacity, coolness, or uniqueness. Quality engineering is what makes the product different from the rest and appealing to the customer. The results that I received when conducting the simulations were good. I chose three of the four fundamental parameters. The parameter that I did not choose was lifestyle image, which influences the customer into buying into the image rather than the functional attributes according to the University of Phoenix simulation.
In the second part of the simulation I was asked to choose a marketing strategy, a marketing position, and differentiation options. I chose to reposition CruiserThorr, decrease price and increase styling, and use price, promotion, place, and services as the differentiation options. For price I chose to decrease price. For place I chose to include dealers and internet sites. For promotions I chose to sponsor events, offer insurance and protection plans, offer test rides for free, hire celebrities for endorsements, publicize through Hollywood films, and provide giveaways to potential customers.
For services I chose to provide training to dealers, offer customization options, include financial services, and provide services to owner groups. I chose to decrease price and increase style to help boost sales because with recent pitfalls in the economy has caused sales to decrease. If the marketing team decreases the price sales will increase because it will make it more affordable to the target market which consists of mostly 18-25 year olds; hence, increasing style to meet the demands of a younger and hip clientele. According to the simulation, I could have done better especially pertaining to price.
The Term Paper on New Product Launch Marketing Plan, Part II
The following is the second part to the iNKtopia product launch plan. The second part of the marketing plan consists of a detailed target market profile, including buying behaviors, decision motivators, and organizational target markets. The plan also includes steps to manage each stage of the product life cycle and tactical plans for the Four P’s. Finally, the second part of the marketing plan ...
The simulation insisted that maintaining the price is crucial to the differentiation and changing the price would adversely affect the other components of the marketing mix. I agree. I could have offered financing options for customers rather than decreasing the price. This would allow customers to get the motorcycle and pay it off in a reasonable time and still not lose out on the profit. Every company or business should constantly evaluate or examine their products or services to be able to better serve its target market. The positioning and differentiation of products are essential element of marketing strategies and tactics.
Differentiation of the products or services is the integration of attributes making the company’s product different from competitors. Depending on the differentiation of the product will help determine where the marketing team will position the product. The position of the product is how you represent your product against competitors to the target market. For example, Thorr’s Motorcycle Inc. would state that their corporation is the best because they guarantee quality engineering and low prices. The relationship between differentiation and positioning is that both elements go hand in hand.
The marketing team cannot have one element without the other. The positioning of the product or service depends on the differentiation of the product in the market. The repositioning of Thorr Motorcycles is not what I expected because it was hard to see how the product and services could recover without the clear understanding of attributes or parameters, differentiation, and marketing plans or tactics. The product life cycle has many effects on the marketing strategies and tactics. Planning is effected and depending on where the product is in the life cycle can help the company prepare for the future of the product.
The Essay on Branding in Product Marketing
Short explanation of why brands have become a critical issue in product marketingBrand is defined as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting ...
Every marketing team understands that the life of a product is inevitable and will end eventually. Knowing where the product is in the life cycle helps the company prepare for increases and declines in sales. The pitfall of the life cycle that has a negative effect on marketing tactics is making false assumptions. For example, no marketing team can predict the launch of similar products. So while the company is expecting an increase in sales they may not because the competitor’s campaign may be more appealing giving off the impression that the original item is a copy.
So that being said changes in marketing conditions or consumer needs can hinder the assumption of where the product should be in the life cycle. In conclusion, my job was to choose a marketing plan for Thorr Motorcycle Inc. to help reposition the product. I chose innovation tactics that proved to be a good plan to increase revenue. Though my tactics could have been altered by maintain price while offering financing options I think my marketing team did an awesome job.
