TMA 01

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.

1. Describe what is meant by customer relationship management (5 Marks)
2. Explain how does Harley-Davidson build long-term customer relationship? (10 Marks)
3. 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)

1. Explain the difference between marketing segmentation, targeting, differentiation and positioning (15 Marks)
2. Compare and contrast undifferentiated, differentiated and concentrated targeting strategies. Which strategy do you think is the best? (12 Marks)
3. 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)

1. Explain and analyze the decision process buyers of motorcycles go through before purchasing their motorcycle. (15 Marks)
2. Do Harley-Davidson fans go through the same process? Explain. (10 Marks)
3. 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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