Case Study: Harley-Davidson
Few Brands engender such intense loyalty as that found in the hearts of Harley- Davidson owners. Long ago, Harley Davidson realized that the best way to create lasting relationships with its customers was to understand them on their own terms. The company spends a great deal of time and money in pursuit of that goal. It wants to know who its customers are, how they think and feel, and why they buy a Harley. That customer-centric strategy has helped build Harley-Davidson into a multibillion–dollar company with the largest company-sponsored owner’s group in the world.
Harley-Davidson has learned that it sells much more than motorcycles. The company sells a feeling of independence, individualism, and freedom. These strong emotional connections have made Harley- Davidson ownership much more of a lifestyle than merely a product consumption experience. To support that lifestyle, Harley- Davidson recognizes that its most important marketing tool is the network of individuals who ride Harleys. For this reason, Harley- Davidson engages its customer base through company-sponsored travel adventures, events, and other things, such as clothes and accessories both for riders and those who simply like to associate with the brand.
Answer the following questions:
Question 1: (30 Marks)
The first four steps in the marketing process involve building customer relationships. The final step involves capturing value in return.
- Describe what is meant by customer relationship management (5 Marks)
- Explain how does Harley-Davidson build long-term customer relationship? (10 Marks)
- Describe the five marketing management concepts and explain which one describes best Harley- Davidson marketing strategy? (15 Marks)
Word count: 400 words
Question 2: (35 Marks)
- Explain the difference between marketing segmentation, targeting, differentiation and positioning (15 Marks)
- Compare and contrast undifferentiated, differentiated and concentrated targeting strategies. Which strategy do you think is the best? (12 Marks)
- Based on the case and on your personal information, explain in details who are the segments targeted by Harley-Davidson. (8 Marks)
Word count: 300 words
Question 3: (35 Marks)
- Explain and analyze the decision process buyers of motorcycles go through before purchasing their motorcycle. (15 Marks)
- Do Harley-Davidson fans go through the same process? Explain. (10 Marks)
- How might a marketer influence a consumer’s information search through each of the four information sources of the decision process? (10 Marks)
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