Using perceptual maps in marketing

Using Perceptual maps in Marketing Introduction Perceptual map is a significant way to visualize the position of an organization in the market. It helps an organization to determine its position in competitive market against its close competitors. On the other hand, simulation is a particular way in which an individual can visualize a specific hypothecated situation. This essay will consider a story of Thor Motorcycle organization and will help to determine the role of perceptual maps in marketing based on this story. Simulation Situation The simulation is based on a renowned motor cycle producing and distributing organization. The organization produces products of high quality, but recently the sales of the products went down due to several reasons. A perceptual map has been implemented for Cruiser Thorr to identify its market position. This implementation will help to assist whether reposition or introduction of new product is required or not. Phase 1 It is important to consider four essential components, such as service offering, quality engineering, life style image, and product designing and styling to develop a perceptual map for the organization. It is important for the organization to consider style statement and visual looks of the product. These parameters will help to attract target customers effectively. Phase 2 The second phase will consider which strategy will be effective. Repositioning strategy will help to redefine the image of the products. On the other hand, introducing new products will require different marketing strategy. Introduction of new products will be effective in this case as the organization is facing problems like back dated style statement and high price of products comparing to its competitors. Therefore, new product introduction will help the organization to change its pricing strategy. According to the new positioning of newly developed product which is demonstrated in above figure, the organization has to adopt unique market strategy. This strategy can be divided into four parts, such as product, price, place and promotion. The organization has to prepare a business operation budget in order to offer attractive and low-priced motorcycles to target customers. In addition to this, durability of the products is also need to be considered as it will help to satisfy the needs of mature customers. Phase 3 This last phase of simulation part needs to focus on implementation of marketing strategies. The organization should adopt effective promotional strategy to show the attractiveness, low pricing, individuality and durability aspects of newly introduced motor cycles. Customer service is another important factor that needs to be taken care of by the organization. In addition to this, skilled workforce is required in order to maintain the effective business performance. Skilled manufacturing and service engineers will help the organization to ensure customer satisfaction and positive business outcome. Differentiation and Positioning Organizations generally implement product or service differentiation strategy in order to maximize business profitability. Product or service differentiation strategy is a particular business strategy that helps an organization to introduce differentiated products comparing to other market competitors in order to meet current market demand. On the other hand, positioning strategy is a specific marketing strategy that helps an organization to position or place its products in a perceptual map according to the characteristics of products and behavior of target customers (Masterson & Pickton, 2010). These two strategies are significantly related to each other. Generally an organization can determine the position of its existing products through a perceptual mind map. It is an integral part of positioning strategy. An organization introduces a new differentiated product to maximize business growth. Positioning strategy helps that organization to position that differentiated product according to the needs and behavior of target customers. The new introduction of the product in simulation defines relationship between these two strategies. The Thorr motor cycle introduced new differentiated product to overcome existing problems. On the other hand, positioning strategy will help the organization to position this product successfully by targeting young and old customers. According to the perceptual map, the position of the product will be as low priced and desired product. Product life cycle Product life cycle consists of four stages, such as introduction, growth, maturity and decline. Each and every organization uses this strategic tool for developing marketing stagey to maintain the growth stage of product. Product life cycle helps to determine the profitability and effectiveness of a particular product. Cruiser Thorr is in maturity stage. It will soon reach to decline stage due to constant change in market demand. Therefore, it is important to undertake repositioning or new product’s introduction strategy. In this case introduction of new product has been selected. Therefore, it can be stated that the developed product has to start with introduction stage in product life cycle. Conclusion It is clear from above discussion that, an organization should try to reposition its product or introduce a new differentiated product when its existing products reach to the maturity stage. The implemented perceptual map in above study will help the organization to develop strategy and prepare operation budget according to the position of new product. Reference Masterson, R., & Pickton, D. (2010). Marketing: An Introduction. London: Sage.