CASE: Cruise Companies Learn How to Cater to Distinct Market Segments

Read this case study than answer the two questions at the end must be a page in length. Double space APA style This is the reference for the textbook.

TextbookBoone, Louis E., and David L. Kurtz. Contemporary Marketing, 16th Edition. Cengage Learning, 2013. ISBN: 9781305341562.
The typical cruise ship passenger may not actually exist. While the core target market for cruise vacations is 25 or older, with a passport and household income of at least $40,000 who is likely to have cruised at least once before, that description now covers more than 40 percent of the U.S. population. That's why cruise marketers no longer think in terms of an "average" customer. So many different specialty cruises are springing up to appeal to different market segments that almost anyone can find themselves in a target group.

What's your passion? Whether you like to cook, quilt, tango, snorkel, listen to jazz, play baseball, garden, watch movies, gaze at Impressionist art, explore investment strategies, hold a family reunion, or engage in a host of other pursuits, there's a themed cruise for you, with specific on-board and on-shore activities, workshops, and seminars hosted by skilled instructors. Even if you're attending a business meeting or conference rather than enjoying a vacation, you may well find yourself cruising for the occasion. Business managers find that meetings on cruise ships can save as much as a third of the cost of land-based gatherings, once all cost factors like meals, lodging, travel, and audio-visual equipment are taken into account. Besides, says the cofounder of a company that plans such events, cruising "excites people."

Passengers do fall into a number of traditional demographic categories that cruise marketers find useful. Analyzing factors like country of origin, language, economic status, and psychographics, marketers have devised distinct market segments. "Explorers" are well-to-do repeat customers, a small group that's profitable but challenging to please. "Admirals" are older and loyal; they appreciate a traditional experience. "Marines" are young professionals on the lookout for a better experience each time; they're eager to parasail, surf, and rock climb. "Little Mermaids" are upper-middle-class families in search of a memorable vacation, while "Escapers" just want to get away from the daily grind without worries or complications. Finally, "Souvenirs" are in search of the best deal; price is their priority. Marketers even have a term for those whose interest and income make them unlikely to become cruise customers. They are "Adrift."

QUESTIONS FOR CRITICAL THINKING

1. Is segmenting customers as "Explorers," "Admirals," and the like a useful marketing tool? Why or why not?

2. Which segments of the cruise market are most likely to be influenced by social media? Why?