MARKETING THE INDUSTRY SEGMENTS

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MARKETING THE INDUSTRY SEGMENTS 4.03 Explain the cruise industry.

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MARKETING THE INDUSTRY SEGMENTS. 4.03 Explain the cruise industry. The cruise experience…. “Floating resorts” All-inclusive vacations Includes transportation, meals, lodging, recreation, and entertainment Service is equal for all passengers. - PowerPoint PPT Presentation

Transcript of MARKETING THE INDUSTRY SEGMENTS

Page 1: MARKETING THE INDUSTRY SEGMENTS

MARKETING THE INDUSTRY SEGMENTS

4.03 Explain the cruise industry.

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The cruise experience…•“Floating resorts”

• All-inclusive vacations

•Includes transportation, meals, lodging, recreation, and entertainment

•Service is equal for all passengers.

• Itineraries, destinations, and cabin locations are the main factors segmenting the cruise industry.

•Cruise lines offer diverse itineraries to appeal to different markets.

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Cruise Market Segments

•Mass market

•Middle market

•Luxury market

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Mass Market

•Passengers have income from $20,000-$39,000.

•Carnival Cruises•http://www.youtube.com/watch?v=XQf2OlLbzog

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Middle Market

•Passengers have income from $40,000-$59,000.

•Largest portion of the cruise market.

•Princess Cruises and Norwegian Cruises•http://www.youtube.com/watch?v=NnZzDywn_fs

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Luxury Market•Passengers have income in excess of $60,000.

•This market level offers superior service and cuisine.

•Seabourn Spirit and the Radisson Diamond serve this market.•http://www.youtube.com/watch?feature=endscreen&v=hRnwg-zFlRE&NR=1

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•GRT: Gross registered tonnage;the amount of enclosed space on a ship; one GRT is equal to 100 cubic feet.

•Space ratio: The amount of space per passenger on a cruise ship. The space ratio is a guide to the market level of a ship. A ratio of 35 or higher indicates a capacious ship.Space ratio = GRT/Number of passengers

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Accommodations…

*The location of the cabin may be the only distinction that separates passengers.

•Larger staterooms are on upper decks.

•Suites have separate bedroom and lounge/living areas.

•Top decks rooms often have a terrace.

•Cabins on the upper decks are the most expensive.

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Accommodations…(cont.)

•Cabins located on the outside of the upper decks have portholes (windows).

•Cabins located on the inside and lower decks have no windows.

•Cabins are designed for efficient use of space.

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Elements of a cruise…

•Embarkation

•No cash needed

•Security checks

•Meals

•Daily program

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Embarkation…

•Cruises are usually circle trips

•Departing and returning to the same port city

•Port City known as the embarkation point.

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No cash needed…

•Passengers use credit card to open an account before setting sale.

•All purchases on board the ship are charged to the account.

•Passengers settle charges at the end of the trip.

•Passengers without credit cards must make a cash deposit prior to setting sail.

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Security checks…

•Cruise passengers are required to go through a security check.

•Some ships issue passengers a plastic card that serves as their cabin key, boarding pass, and ID for coming back from visiting a port of call.

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Meals…

•Formal and informal dining

•Menus may be theme related or haute cuisine

•Buffet services for casual dining

•Pizza and ice cream bars available

•Midnight buffets

•Room service available

•Appetizer parties on first and last nights of a cruise

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Reservations for the dining room…•“One seating” allows

passengers to dine anytime during serving hours.

•Early or late seating requires passengers to dine at a set time.

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Daily program…•Program activities for the next day is put in the passenger’s room at night.

•Information helps passengers plan their activities.

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Types of Cruise passengers…•Active. With the variety of activities on a ship, it is easy to stay busy.

•Families. Special activities are designed for children so parents can relax and enjoy themselves.

•Gamblers. Casinos offer entertainment for passengers interested in playing.

•Those celebrating an event. Special occasions are often celebrated on cruise ships.

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Cruise passengers…(cont.)

•International travelers. Cruise itineraries satisfy travelers who want to experience the appeal of other countries.

•Those who wish to relax. Passengers decide whether or not to participate in activities. Pools, spas, and massages are available.

•Singles. Ships provide the opportunity to meet others.

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Cruise passengers…(cont.)

•Those with special interests.

•“Theme cruises” to appeal to many special interest groups

•whale watching or wine tasting

http://www.youtube.com/watch?v=SihMgWxBnSU

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Popular cruise destinations…

•Bahamas

•Baltic Sea

•Bermuda

•The Caribbean

•Mediterranean

•South America

•Alaska

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Air-sea packages…

•Flights to the embarkation port may be included.

•Added convenience to the travelers

•If flights are delayed, the ship may delay sailing to wait for the bulk of passengers, or passengers may be flown to meet the ship at the next port.

•Shuttle service between the airport and the port is usually included.

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Marketing strategies used by industry…•Many cruises are promoted through agencies.

• Cruise lines have sales teams who go to individual agencies to assist with advertising and sales promotion of their cruise line.

•Sales incentives are offered to agents to influence them to promote one cruise line over another.

•Brochures are the main promotional tool.

•Websites provide an opportunity for a timely response.

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Marketing strategies used by industry…•Sales promotion items used on ships include glassware, cruise line clothing, towels, and other souvenirs in the gift shops.

•Cruise lines utilize television advertising to reach mass markets and magazines to cater to particular market segments.

•Direct mailings are frequently used to follow up with cruise customers, and email is used to deliver newsletters and alert cruisers of upcoming specials.

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Trends in the cruise industry…•Has remained strong despite 9/11/01

•Rapidly growing segment

•Safer ship designs due to technology

•Individual ships marketed to specific target markets

•Navigational aids can pinpoint ship location at all times

•Niche marketing

•Baby boomer travel