Perceptual Maps in Marketing
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Perceptual Maps in Marketing
The history of the motorcycle has been lifestyle driven since its inception in 1901. What began as a motor-driven bicycle has thrived throughout war and recession. The motorcycle throughout history has represented “masculinity, mobility, and freedom” (University of Phoenix, n.d.). This representation has kept the motorcycle alive. As a manufacturer, Thorr is looking to bring in a larger market share including the younger set of motorcycle consumers. Thorr Motorcycles, Inc. has brought in a Marketing Manager to build a marketing plan that will determine what changes need to happen for the continued success of its company.
The Situation
Thorr Motorcycles, Inc. has begun experiencing a decline in sales of the iconic bike CruiserThorr. Thorr holds a high product image with sales of consumer items such as T-shirts, leather goods, and toys. Along with these items, Thorr offers training, software, and rentals to meet the needs of its customers. Two options are available to Thorr. The first option is to revamp the marketing strategy for the current favorite CruiserThorr. CruiserThorr is geared toward an older market; the decision includes broadening the market to include the younger buyers. The second option is to develop a new bike called RRoth that will appeal to a younger market. A perceptual map is used to assist in this process. There are many attributes to take into consideration when plotting a perceptual map. Included in these attributes are safety, product design, styling, fund, product uniqueness, engine capacity, lifestyle image, service offerings, quality engineering, and price. All of these factors are important to a products success. The Marketing Manager must choose four areas to focus on to determine where changes need to be made.
Recommended Solutions
The Marketing Manager chose the four fundamental parameters for an optimal perceptual map. Lifestyle image is the most important factor of all. Most customers buy into the image of a product more so than the functional attributes of a product. Quality engineering covers most aspects of the product. Quality engineering covers a large portion of the product including design, and quality of manufacturing. Price is normally proportional with image. If the price is lowered, the brand image will be affected appearing to lower the value of the product as well. Services are also vital to the success of a product. The benefits of buying one product over another may be as simple as a club membership, or driving classes.
Allowed a budget of $13,000 the Marketing Manager chose to reposition CruiserThorr. The positioning strategy that was chosen is to hold the current price of the CruiserThorr in place. If the price were reduced, it would decrease the brand image therefore reducing sales. In keeping the pricing the same Thorr Motorcycles, Inc. will open up for easier financing options allowing more options for the younger market with less disposable income. The financing options will increase sales while maintaining the high quality demonstrated with the CruiserThorr. The biggest change that Thorr Motorcycles, Inc will make is to revamp the services offered. Increases in the service offering are time tested. Increased service offerings will ensure customer loyalty as well as build relationships with dealers, and distributors. There will be an increase in club membership benefits, as well as increased services to owner groups. The dealerships will receive increased training programs. They will train to emphasize the new customized options that will be available on the CruiserThorr. Customers will be offered insurance and protection plans to increase the value of the package when purchasing a CruiserThorr. Finally, awareness of the abilities of CruiserThorr demonstrated with movie endorsements through Hollywood Film endorsements. The film endorsements will open up for giveaway merchandise for owners of the CruiserThorr. These changes come at the cost of $12,878 staying well within the established budget.
Results
One year has passed. The market research team surveys 350- male, motorcycle enthusiast between the ages of 25 and 55. Each individual was asked to rate his perception of the CruiserThorr brand attributes. The categories rated are lifestyle, the product, and the services received on a five-point scale. The first portion of the survey covered lifestyle image. Easily, 57 percent surveyed said that CruiserThorr was solid, stable, and an enjoyable ride. With a large majority agreeing that CruiserThorr is expensive, they also find the styling to represent power. When asked what encourage them to purchase the CruiserThorr more than 50 percent answered that it suited their lifestyle, and that owning a CruiserThorr was a status symbol. In the category of product characteristics, the engine rated as the best in its market with 54 percent. Engine power and capacity were evenly spread on the high end of the scale. The majority of men surveyed still hold that they only budgeted $13 to $15 thousand in the allocations for purchasing a motorcycle. Only 23 percent of men surveyed budgeted to spend more than $25 thousand purchasing a motorcycle. Positive results indicated with a higher percentage agreeing that Thorr financing through the manufacturer would increase the chance of making a purchase of the more expensive CruiserThorr. Of the services offered only the dealer training, customizable options, and