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Video Title: Boston Harbor Cruises: Customer-Driven Marketing Strategy

Run Time: 6:27

Classroom Application: Instructors will find this video useful in the study of marketing strategies. Boston Harbor Cruises serves as a good example of a customer-driven marketing plan because they have such a diverse customer demographic and different marketing strategies must be employed to reach each specific group of potential customers. Providing students with such knowledge can help them to appreciate and better understand a variety of marketing strategies.

Synopsis

Boston Harbor Cruises owns the largest private fleet of passenger vessels in the United States. As a family-owned business that has been in operation for over 85 years, Boston Harbor Cruises provides commuter boat services, offshore construction support, and nine different excursion trips. Their goal of creating value for target customers is accomplished through a variety of marketing strategies. The challenge Boston Harbor Cruises once faced in dealing with the volatility of a single customer segment was solved by creating a marketing plan designed to specifically target not only local residents and visitors from other parts of the country but also international customers. This widens the customer demographic to which they are marketing their services, creating diversification that allows them to be less adversely affected by local economic fluctuations.

Discussion Questions

1. On what main variables had Boston Harbor Cruises focused in segmenting its markets?

Initially, Boston Harbor approached the market from a “local” perspective. It had many different cruise services for various customer segments. And it certainly catered to customer differences with those different services (commuter ferries, whale watching tours, thrill ride, historic tours, dinner tours). But it considered all those customers as “local” in that they all came to Boston and used the service there. This is evident in how Alison Nolan tells of the company’s former practice of advertising in the Boston yellow pages, the local Boston newspapers, and by putting promotional materials in Boston hotels.

2. Which target marketing strategy best describes Boston Harbor Cruises efforts? Support your choice.

Differentiated – Boston Harbor Cruises clearly “targets several market segments and designs separate offers for each.” Boston Harbor Cruises has taken this to a new level by recognizing the differences between local, U.S. tourists, and international tourists.

3. How does Boston Harbor Cruises use the concepts of differentiation and positioning to build relationships with the right customers?

Boston Harbor Cruises has identified different customer segments. It has also identified the unique needs of those segments. It should be noted and discussed that Boston Harbor Cruises has identified how fluctuations in the economy affect consumer needs. As the largest private fleet of ocean going vessels, Boston Harbor Cruises has a lot of boats that serve a lot of purposes. It has catered these services to the needs of different customers.

The biggest way that Boston Harbor Cruises has changed its positioning strategy is by adjusting its promotional strategy. In down times, it knows that it has a better market among international travelers. As a result, it has increased online efforts, as well as increasing its budget that focuses on foreign travel partners.

Quiz

1. Which of the following statements is not true with regard to Boston Harbor Cruises?

a. Boston Harbor Cruises runs the largest private fleet of passenger vessels in the United States.

b. Boston Harbor Cruises offers commuter boat services.

c. Boston Harbor Cruises is a relatively new company, having been in business for less than eight years.

d. Boston Harbor Cruises serves over two million passengers per year.

Answer: c

Explanation: Boston Harbor Cruises has been in business for over 85 years.

2. Which of the following statements best describes the key to successfully marketing Boston Harbor Cruises?

a. understanding the wide variety in the customer demographic being served

b. understanding the preferences of the local residents of Boston

c. understanding the preferences of potential international customers

d. understanding the largest potential customer segment, the non-local U.S. tourist

Answer: a

Explanation: According to the video, the key to successfully marketing Boston Harbor Cruises is to understand the wide variety in the customer demographic being served. When the economy in the United States is thriving, customers are mostly local residents and visitors from other parts of the United States. When the economy in the United States is struggling, customers are mostly international travelers.

3. Which of the following was not a factor in Boston Harbor Cruises’ need to change their marketing strategy?

a. increased competition from other entertainment industries

b. an economic crisis in the United States

c. an overall decrease in the number of customers

d. larger potential customer base of the global market

Answer: c

Explanation: With an increase in competition from other entertainment industries in Boston as well as a faltering United States economy, Boston Harbor Cruises found it necessary to change their marketing strategy. There was also the recognition that the potential customer base of the global market exceeded that of the U.S. It was no longer enough to advertise locally in the yellow pages and local newspapers.

4. Boston Harbor Cruises made use of all of the following services in their marketing strategy to target potential international customers EXCEPT

a. Google Analytics

b. social media, such as Facebook

c. international newspapers

d. travel websites, such as Expedia and Travelocity

Answer: c

Explanation: To target international customers, Boston Harbor Cruises decided they needed to increase their presence on the World Wide Web. To do this they made use of the services offered by companies such as Google Analytics, Facebook, Expedia, and Travelocity.

5. What is currently the biggest marketing challenge facing Boston Harbor Cruises?

a. learning how to navigate the ever-changing on-line landscape

b. deciding how to best describe the services offered to potential customers

c. determining in which visitor publications it is most beneficial to advertise

d. creating appealing brochures to be made available at visitor centers

Answer: a

Explanation: As the on-line landscape is constantly changing, the biggest marketing challenge facing many companies today is staying current on these changes and abreast of new technologies as they are established.

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