Sunday, May 16, 2010
Sturgis Here I Come!!!!
Chapter 3 of Roberts' Internet Marketing breaks down the value proposition, the understanding of the different business models, and which models are most prominent on the internet today. First, we must understand the value delivery system, to see if Harley Davidson created the product first, or chose the intended value and delivered the product as such. In 1903, four young men experimented with internal combustion, and over 100 years later Harley Davidson has maintained its dominance in the market, and has become a household name. So, in the beginning I would argue that the product was the driving force behind Harley Davidson. Today, the value drivers are what motivates their buyers as well as their vast marketing campaigns. The select target group has developed from rebel construction and labor workers into retired stockbrokers, professional athletes, stay at home moms, and interior designers. Harley Davidson also understands that the majority of motorcycle enthusiasts "know" their product, while many other part-time riders "know" Harley Davidson. They use this as a driving force in their marketing campaigns online, and in their stores. Renowned strategist Kenichi Ohmae puts it strongly....He urges marketers to "provide value to customers rather than aping the competition" (Roberts pg 56). Value to Harley Davidson customers comes in the form of resale value, image, comfort, feeling of belonging to a group, diversity, individual production capabilities and many more motivated buying and selling drivers. They communicate the value to customers by their message, individualized owners advertising, and promotion and public relations campaigns (ABATE, rallies, conventions, etc). I will finish my view on Harley Davidson with one more from Ohmae, "The value delivery system puts the focus on the customer---first defining the value drivers desired by the customers, next creating a product and marketing strategy that delivers the value, and finally communicating that value to the customer." Harley Davidson has transformed themselves into a corporation much larger than just a loud tail pipe--by using the value drivers discussed in Chapter 3 of Internet Marketing (choosing the value, providing the value, and communicating the value). It was incredible to spend the time to truly dig into their website and review the history and see where Harley was, and where they plan on going. Good stuff Harley Davidson, Sturgis Rally here we come!!!
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Well said! Two things about value: it is always from the point-of-view of the customer, and it makes up that part of a product or service a customer is willing to pay for. Customers do not buy a product or service; they buy a set of desired outcomes, which includes a quality component. So, the value of a Harley goes beyond the H.P., chrome, and name: it speaks to the experience, and customers (loyal ones) are willing to pay up for that value.
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