GERALYN A.

TANEO MM1
Perceptual Map for a Health Club (Figure 5.3):
- Imagine you're in charge of a health club, and you want to understand what
your customers think about your services.
- In Figure 5.3, you have gathered information from your patrons. They've
rated your health club on several aspects, like how convenient your location
is, the variety of exercise machines you offer, how quickly patrons can access
new machines without waiting, and the quality of your staff in terms of being
helpful, friendly, and capable of giving good workout instructions.
- Your customers have also shared their opinions on which of these qualities
matter the most to them when choosing a gym.
What the Figure Reveals:
- From this figure, you can see a few important things. First, it shows that
your health club is in a convenient location. However, it seems that
customers don't consider location convenience as a significant factor in their
choice of gym. So, it's not a strong selling point.
- The figure also suggests that your staff isn't outstanding, but this isn't
hurting your gym much. It's not a major concern for your customers.
- On the other hand, the figure indicates that the number of exercise
machines you have is limited, and this is something that customers really
care about. This is a weakness because machine availability is an important
factor for your patrons.
Using Perceptual Maps for Competitive Analysis (Figure 5.4):
- To better understand your health club's competitive position, you can
compare it with two other gyms, labeled as Gym 2 and Gym 3, in Figure 5.4.
- The analysis shows that Gym 1 (your gym) is either relatively expensive or,
at the very least, not better than Gym 3. Gym 2 provides better value.
- When it comes to machine availability, both Gym 2 and Gym 3 outperform
your gym. This is a problem that needs attention unless you excel in other
aspects not shown on this plot.
Limitations of Perceptual Maps:
- The challenge with perceptual maps is that they can only show two
attributes at a time. To get a full picture, you'd have to examine many plots.
Figure 5.7 - Promotion and Distribution Matrix:
- This figure is similar to the previous one but focuses on the other two Ps -
promotion and distribution.
- The simplifications here involve heavy vs. light promotion and distributing
goods widely or selectively.
- It suggests a natural match:
- "Heavy Promotion with Wide Distribution" implies a strategy aimed at
moving a lot of merchandise and making it widely available.
- "Light Promotion with Exclusive Distribution" makes sense for brands with
a more exclusive image and distribution chain. They don't need to promote
heavily as if their products were common.
Figure 5.8 - All 16 Combinations of the 4 Ps:
- This figure expands the matrix to cover all 16 possible combinations of the
4 Ps: product, price, promotion, and distribution.
- It acknowledges that theoretically any combination is possible, but the text
aims to evaluate which combinations make the most or least sense.
Figure 5.9 - Suggests Eliminating Low-Price and Exclusive-Distribution
Combinations:
- This figure recommends excluding the combinations where a brand is
priced low but has an exclusive distribution.
- The assumption here is that if a brand is priced low, the company needs to
sell a high volume of products to make money, which doesn't align with an
exclusive distribution strategy.
In summary, these figures and discussions simplify the complex world of
marketing by breaking it down into manageable choices related to product
quality, pricing, promotion, and distribution. It highlights that successful
marketing strategies often involve logical matches between these elements,
and some combinations are more practical and effective than others. It
encourages marketers to carefully consider the interplay of these factors in
their strategies.

Introduction of Figure 5.5:

- Figure 5.5, while not a typical map, helps express competitors' profiles
using more attributes for comparative purposes. This allows for a more
comprehensive analysis.

The Positioning Matrix (5-1b):

- Just like customers have high expectations, wanting the best in everything
from mileage to looks to low prices, companies also want to excel in every
aspect.
- Many companies state in their mission statements that they are the best at
everything, they prioritize their customers, their employees are top-notch,
and so on.
- However, customers can't have it all, and companies can't be the best at
everything all at once. This is where the concept of brand positioning comes
into play.
- You need to think about what position you want your health club to hold in
the marketplace. Do you want to be the absolute best in everything, or do
you want to be known for offering the best value?
- Achieving either of these goals is possible, but both at the same time might
be challenging. This is where you should consider the marketing 4Ps
(Product, Price, Place, Promotion) to figure out what makes the most sense
for your brand.
Certainly, let's break down the content step by step:

Figure 5.6 - Product and Price Matrix:

- This figure presents a 2x2 matrix that simplifies the relationship between
two of the four Ps of marketing - product and price.
- The two Ps considered here are product quality (low vs. high) and pricing
strategy (low vs. high). It simplifies the complexity by not considering shades
of gray in between. It assumes products are either low or high quality and
prices are either low or high.
- In this basic matrix, it becomes evident that there are logical matches:
- "Low-Low" refers to products of modest quality priced cheaply.
- "High-High" corresponds to high-quality products offered at a higher price.
- Occasionally, there are brands that offer "High Quality at Low Prices," and
these are seen as good values. However, it can be challenging for a company
to maintain this balance over time, as they might need to raise prices or cut
costs, potentially affecting quality.
- Conversely, brands that are "High Price, Low Quality" typically don't last, as
customers are discerning, and such brands must either adjust prices,
improve quality, or exit the market.