Chapter 4: Company Case Bayer: Big Data for Customer Insights

4-16 What opportunities are created for Bayer from the big data coming from the four segments it operates in and
from the Monsanto merger?
Bayer can use big data from its four segments and the Monsanto merger to better understand customers, improve
products, and boost efficiency. This data helps spot market trends, create personalized offerings, enhance farming
techniques, and drive innovation in healthcare and agriculture.
4-17 How does Bayer gather relevant marketing information to keep up with customer demands in the four segments?
Bayer stays updated on customer demands in its four segments by collecting data from sales, finance, human
resources, and marketing sources. They also work with outside analytics firms, do market research, gather feedback
from customers and stakeholders, use digital platforms, and apply data science to understand customer preferences,
market trends, and competition.
4-18 How does Bayer manage the information gathered from the various stakeholders mentioned in this case?
Bayer handles data from stakeholders while prioritizing privacy and security. They comply with legal rules, set up
agreements with service providers, regularly check data practices, and maintain transparency in dealings with
customers, suppliers, regulators, and other stakeholders.
4-19 How are the steps of the marketing research process followed at Bayer?
Bayer methodically follows the marketing research process: defining the issue, gathering data, analyzing it for
insights, making decisions, and assessing strategy effectiveness. They use both quantitative and qualitative methods,
advanced analytics, and innovative tech to conduct research and boost business growth.
4-20 How does Bayer safeguard customer privacy in its marketing research
Bayer protects customer privacy in marketing research through rigorous policies like the LIFE standard: Leadership,
Integrity, Flexibility, and Efficiency. They handle personal data carefully within regulatory limits, collaborate with
specialized service providers for data security, monitor compliance with privacy rules, and take proactive steps to
prevent data breaches or unauthorized access.
Chapter 5: Company Case Harley-Davidson: Selling Freedom, Independence, Power, and Authenticity
5-16 Discuss the specific consumer behavior factors (for example, culture, family, occupation, attitudes) that account
for Harley-Davidson’s dominance of the U.S. motorcycle market.
Harley Davidson brand offers its customers the prestige of owning a Harley Davidson. Using Harley Davidson
motorcycles creates values like power, freedom, and independence. It has also become a tradition for middle-aged
individuals.

5-17 With respect buying a motorcycle, discuss the buyer decision process for the classic Harley-Davidson buyer.
When people buy a Harley Davidson, it's often driven by passion rather than just practicality. They start by choosing a
model that resonates with them, comparing options, considering their needs and budget. Ultimately, the decision is
influenced by the brand's prestige and symbolic significance.
5-18 Explain the decline of Harley-Davidson’s business over the past decade based on how the buyer decision process
differs for millennials.
Harley-Davidson's decline is linked to how millennials choose motorcycles. They prioritize affordability over brand
loyalty and prefer smaller bikes, unlike Harley's large models. To adapt, Harley-Davidson should develop products
and strategies that cater to millennial preferences.
5-19 Small group exercise: As Harley-Davidson’s core market ages and declines, how should the company attract new
buyer generations? Consider the positioning of some of its product lines, how the company can encourage targeted
customers to modify their (existing) buying decision process related to a motorcycle, and the marketing mix—product,
price, place, and promotion
Harley Davidson needs to target all market segments, with a focus on younger individuals. Social media advertising is
vital today, yet Harley-Davidson isn't visible there. They should prioritize advertising and innovation for the younger
generation. Moreover, they should shift from their traditional image of large bikes to design smaller, agile motorcycles
that attract young people.
Chapter 6: Company Case Caterpillar: Creating Value for Industrial Customers
6-16 If Edgy bees realizes an overall contribution margin of 40 percent, as the company expands, by how much will
sales have to increase to break even on each additional sales representative?
6-17 Discuss how a buying center team at a heavy equipment business customer might typically go through the buying
decision related to earthmoving equipment.
Heavy equipment business customers, like construction companies, form buying center teams to decide on
earthmoving equipment purchases. They identify needs, gather information, evaluate vendors, and make decisions
collaboratively. Effective communication among procurement, operations, and finance departments is vital. Post-
purchase, they monitor equipment performance to ensure alignment with organizational goals.
6-18 What are the key differences in the roles of Caterpillar’s dealers and the roles of retailers in markets for consumer
packaged goods?
If we focus on the differences between Caterpillar dealers and retailers, they customize products according to
customer needs and provide service and maintenance to the customer. Retailers, on the other hand, supply products
and offer customers shorter and simpler purchasing processes.
6-19 One Caterpillar customer noted that being with the company gave that customer “peace of mind.” What enables
Caterpillar to be in the “peace of mind” business?
Customers who choose Caterpillar feel at peace with trust, service, support and product durability. In addition to being
an industry leader, Caterpillar also stands out with the innovative solutions and sustainability approach it provides to
its customers.
6-20 Small group exercise: A large mine operator wants to order about $100 million of heavy earthmoving equipment.
Caterpillar is competing for the order against Komatsu, Deere, and other giants, which have offered enticing bids
priced 17 percent below Caterpillar on average. Drawing from the case and the chapter, prepare a list of concise but
compelling reasons to help the Caterpillar sales team win the business.
Chapter 7: Company Case Outschool: Personalized Education for All

7-16 There are approximately 48,000 emergency response vehicles operated by private ambulance companies,
municipal fire departments, and hospitals. Assuming the price of the portable Lucid Robotic System is $22,000 and
that only half of the emergency response vehicles would be equipped with a system, calculate the ambulance-related
market potential for this product.
7-17 Markets can be segmented along several dimensions. How did the founders of Outschool segment the market?
Outschool's founders segmented the market along the education dimension. Market segmentations are based on the
educational needs and interests of children in different age groups, learning styles and subject preferences.

7-18 Which market targeting strategy did Outschool follow? Are there other market segments that Outschool could
have targeted?
Outschool adopts a differentiated market targeting approach by providing a wide array of courses tailored to various
subjects and interests. It caters to families seeking supplementary education, homeschooling families seeking diverse
learning options, and parents seeking non-traditional learning experiences for their children. Expanding beyond
children's education, Outschool can explore international markets to offer specialized lessons catering to diverse
cultural and educational backgrounds. It can also tap into the adult learner market by developing courses for personal
or professional development. This strategy positions Outschool as a top online learning platform serving students of
all ages and backgrounds.
7-19 How should Outschool reshape its market strategy for a post-COVID, technology-intensive world?
First, Outschool should focus on strengthening its online presence. This could involve developing user-friendly
interfaces, improving website and mobile app functionality, and optimizing the digital learning experience for both
students and teachers. Additionally, Outschool could consider expanding its offerings to include more advanced and
customized courses that meet the growing demand for technology-related skills. Introducing courses such as coding,
robotics, artificial intelligence, and more can be important to prepare students for a technology-driven future.

7-20 Small group exercise: Digital marketing platform Mailchimp’s positioning statement is as follows: “Mailchimp is
an all-in-one Marketing Platform for small business. We empower millions of customers around the world to start and
grow their businesses with our smart marketing technology, award-winning support, and inspiring content.”
Messaging platform Slack’s positioning statement is as follows: “Slack is the collaboration hub that brings the right
people, information, and tools together to get work done. From Fortune 100 companies to corner markets, millions of
people around the world use Slack to connect their teams, unify their systems, and drive their business forward.” Craft
a positioning statement for Outschool.
“Outschool is an educational platform that enriches children's learning experiences online. We provide an inspiring
learning journey for students of all ages, offering a wide range of subjects and a flexible learning environment.
Outschool provides an educational environment that allows students to explore their curiosity, develop their talents
and discover the world.”