The Using Perceptual Maps in Marketing Simulation Essay

The Using Perceptual Maps in Marketing Simulation - Essay Example The purpose of the simulation is to construct a perceptual map for a marketing plan of Thorr Motorcycles. During the first round of the simulation the first step was to create a perceptual map of the company to attract customers due to the fact that the firm was facing declining sales from its existing product, the Cruise Thorr. â€Å"A perceptual map is a visual representation of what the customer thinks of a brand† (Using Perceptual Maps in Marketing Simulation, 2013). The student had to choose four parameters among the following nine parameters: lifestyle image, product design and styling, cool, product uniqueness, service offerings, price, engine capacity, safety, quality engineering. The parameters selected were lifestyle image, service offering, price, and quality engineering. According to the simulation the four parameters selected were the fundamental parameters for Cruise Thorr perceptual map. Lifestyle image was chosen because image plays a fundamental and critical r ole in the buying decisions of customers in this industry. Price is a no-brainer because people purchasing any type of product evaluate its price to determine whether the price is justified for the good or service a person is acquiring. The high price Thorr Motorcycles charge for the Cruise Thorr is obtained due to the brand image of the company and the perception of the customers that they are acquiring a superior product than the competition. The use of a branding strategy enables companies to charge a premium for its products or services (Kotler, 2003). Quality engineering was selected on the fact that this parameter is a good indicator of the quality of the product the firm offers. Service offering was chosen because motorcycle enthusiasts are attracted by companies that offer a wide variety of services. During the second round of the simulation the player was faced with the dilemma of the market position of the Cruise Thorr not being able to target customers adequately to achie ve the desired sales output. The simulation gave the option to either reposition the Cruise Thorr or to introduce a new product geared towards the economical market. The idea of introducing a new product to target young customers by making the motorcycle less expensive is a bad strategy that the company should not pursue. The firm since its inception has worked hard to create a brand value and corporate image beyond what anybody in the industry holds. Introducing an economical model is not aligned with the mission of the company and would be counterproductive because it would deteriorate the sales of the Cruise Thorr and anger the customer base of the company. The decision taken was to reposition the Cruise Thorr. The positioning strategy selected was to provide financing options and increase services. Providing financing options increases the potential customer base of the company because it allows people that cannot afford to purchase the bike by paying cash the ability to acquire the motorcycle by virtue of their credit. Increasing services is a smart move because it increases the value of the product for the customers. The simulation forced the player to choose a marketing mix for the new repositioning strategy. The price of the motorcycle was maintained without any changes. Decreasing the price would hurt the profitability of the company, while an increase in price will create customer dissatisfaction. The following three promotional options were selected: organize