Summarize the different marketing components addressed in this simulation by answering the following questions:
What is the relationship between differentiation and positioning of products or services?
Differentiation relates to how different the product is from others in the market, in relation to its quality or the value and services it provides. For example, Kashi cereal is differentiated from its big name competitors like Kelloggs by offering a healthier, all-natural type of cereal. Positioning relates to how the brand defines itself: although Pepsi and Coca-Cola are essentially the same type of food item and are not really differentiated, both are positioned slightly differently, one as the upstart beverage, the other as a classic version of cola. Thorr is positioned as a high-end motorcycle, and a luxury brand, much like Lexus in the car market, even though other motorcycles and cars perform the same function of transportation.
Because motorcycles are not viewed as strictly necessary goods, they often are seen as more dependent upon positioning than other types of vehicles. People ride and buy motorcycles to create a certain image for themselves. They are rarely a persons primary means of transportation, and a person who buys a motorcycle is trying to create a particular image for him or herself, rather than merely serve a needed function in his or her life.
Is the repositioning of the product in the simulation as you had expected it to be? Why or why not?
Yes. I decided to position the product as offering better quality services in relation to its competitors, and to offer the option of financing, which proved to be the correct strategy.
Repositioning Thorr and competing on price would have damaged its long-standing brand reputation.
What is the impact of the product life cycle on marketing?
The product lifecycle of introduction, growth, maturity, and decline affects a companys ability to substantially rebrand a familiar product. It is difficult to completely change the image of an iconic brand. Other types of repositioning, such as making what the product represents seem more attractive (through offering financing to younger consumers, more product placement in movies) is a better strategy
What impact did the product life-cycle have on the product in the simulation?
Thorrs established brand image limited the maneuverability to decrease price and create a less high-end vehicle. The maturity of the motorcycle market, and the many competitors limited the ability to increase price, and pitch the product to even higher-end consumers. However, by improving services and its lifestyle image — the core aspects of Thorr — the company was able to regain.