What is the marketing mix?
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- Linda Summers
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1 Marketing and Sales
2 What is the marketing mix?
3 The marketing mix The marketing mix is another tool used by organisations Each leisure and tourism business will have their own marketing mix which works for them It is the balance of the fours Ps
4 The marketing mix Product Price Promotion Place
5 Consider each of the Ps. What do you think each one is about?
6 The marketing mix Product This is what an organisation provides for its customers It is what they buy or experience It can be tangible or intangible The right product is one that people actually want to buy
7 The marketing mix Price This is what a customer pays for a product and service The right price is one that people are prepared to pay It also allows the organisation to make a profit
8 The marketing mix Promotion Promotion covers all of the ways in which a leisure and tourism organisation tells customers about its products and services There are many different types of promotional techniques The right promotion is one that attracts people to use or buy their products and services
9 The marketing mix Place Place includes all the activities involved in making the product available to customers The right place makes the product or service accessible to customers so that they can actually buy it
10 Exploring the marketing mix for Madame Tussauds London Product
11 Product What about me? It is important that the right product gets to the right people Describe parts of he product at Madame Tussauds that have been designed to meet the needs of the following groups: Ethnic groups Schools Corporate guests Families
12 Product SCREAM the brand name As part of their extended product offering, there is an attraction called Madame Tussauds SCREAM Visitors come face-to-face with live serial killers, horrors from the past and instruments of torture Can you suggest another name for this aspect of Madame Tussauds product offering? What are the reasons for your choice? Design a new logo for the experience focusing on the colour and style of the lettering you use
13 Product Enjoy the Spirit of London At Madame Tussauds there is also a ride called the Spirit of London Visitors hop into a black cab and take a journey back in time. These special mini versions of London s world famous taxis have room for two and drive visitors through the historic and cultural events that have shaped London into the great city it is today Can you develop a new ride for Madame Tussauds? What is the reasoning behind your new product?
14 Product New news Create some new news for Madame Tussauds by introducing one of the following: A new wax figure. Justify your choice. When will you launch it? A new product for schools
15 Exploring the marketing mix for Madame Tussauds London Price
16 What is Madame Tussauds pricing? Are there different prices for different groups? Suggest reasons for any variations in entry price. How do their prices compare with those of their competitors? Are there any costs for additional facilities? How do these compare with those of others in the market?
17 What is Madame Tussauds competitive set?
18 Madame Tussauds competitive set Any attraction home to London Photo credit: John Byer
19 Exploring the marketing mix for Madame Tussauds London Place
20 Place Place includes all the activities involved in making the product available to consumers For example
21 Place the attraction itself buying tickets through third party agents buying tickets on the telephone online booking
22 Place Location and access are important factors
23 Think about the following aspects when completing this part of the marketing mix for Madame Tussauds
24 Exploring place for Madame Tussauds When is it open? How would you plan your journey to the attraction? How easy is it to get there? Are there special facilities for people with special needs? Do you foresee any problems? If so, do these apply to most London tourist attractions? Is there a better location? What other attractions are in the vicinity? Can you design a route on foot to another attraction?
25 Exploring place for Madame Tussauds If Madame Tussauds offered a combined ticket price to another London based Merlin attraction i.e. The London Dungeons, The London Eye or The London Aquarium can you easily design a route from one attraction to the next?
26 Exploring the marketing mix for Madame Tussauds London Promotion
27 Brainstorming promotion
28 Promotion Meet your match Using the worksheet, can you match the promotional technique to its correct explanation?
29 Promotion Promotional technique Advertising Sales Promotion Public Relations Personal Selling Definition Displaying or broadcasting information about a particular product or service. You have to pay for the space you feature on. Can be carried out in a number of ways, including: television, radio, the internet and newspapers. Short-term tactical marketing tools which are used to achieve specific marketing objectives, for example money off vouchers, free gifts with purchase and competitions. Relies on persuading newspapers and publications to feature a product, attraction or service as part of its editorial content. One way this is achieved is by sending press releases to journalists. Training staff to be more effective in making sales to people who approach the business for information and help.
30 Promotion Promotional technique Direct marketing Sponsorship Events Displays Definition Involves sending or giving promotional materials directly to customers either by post, over the telephone, or door-to-door. When one organisation gives financial (or other) support to something in exchange for their name being associated with that product or event. Planned and organised occasion(s) that is used to raise awareness of the product or service, or to drive visitors to purchase the product or service. If attractive and eye-catching, these can be quite effective in creating interest and sales. These often feature at major leisure, travel or tourism exhibitions.
31 Promotion What an advert! Can you list three adverts that you have seen or heard that have encouraged you to buy a product or service? What do you feel makes these adverts successful?
32 Madame Tussauds uses a variety of promotional techniques to tell customers about its attraction, what it has to offer and to encourage them to visit. Here are four examples
33 Advertising These appeared on posters sites around London.
34 Sales promotion Madame Tussauds distributed a discounted ticket voucher valid for a set period of time.
35 Direct marketing Madame Tussauds sends materials to schools on their database informing them of their educational experiences and products.
36 Public relations Madame Tussauds provides press releases to journalists. For example, this press release spills the beans on some of the attraction s interesting facts and figures. The aim of the press release is to encourage journalists to write about Madame Tussauds.
37 Promotion You ve got the job! In your new role as Marketing Manager at Madame Tussauds you have been briefed to: Plan a special event at Madame Tussauds as another way to attract visitors Develop two different pieces of communication to promote the event e.g. advertising and PR. Provide reasons for your choices
38 Promotion Promotional portfolio Develop a promotional portfolio for Madame Tussauds. For example, you could: Pick up leaflets at the attraction Take photos of any posters you may spot Cut out ads you may find Print out any online offers you may discover Your portfolio can act as a useful reference point of the different types of promotional techniques available
39 Understanding the costs of running a business
40 Costs of running a business Brainstorm: what type of costs do you think Madame Tussauds might have to pay out as a business?
41 Costs of running a business In order for a business to be successful, it needs to make money Therefore, Madame Tussauds needs to work out exactly how much it costs to offer their services, and then add a percentage to make a profit Can you write definitions for: Running costs Start-up costs Turnover Sales Gross profit Net profit
42 Matching exercise Running costs Start-up costs Turnover Gross profit Net profit Sales Definition What am I The difference between total revenue from sales and the total cost of purchases or materials. These are costs that are paid by the business at the beginning to start up the business. The amount of business done by a company during a specified period. These are costs that are paid by the business for the day to day running of the business. The exchange of goods or services for an agreed sum of money. Gross profit minus all operating expenses such as wages and overheads.
43 Matching exercise: Answers Definition The difference between total revenue from sales and the total cost of purchases or materials. These are costs that are paid by the business at the beginning to start up the business. The amount of business done by a company during a specified period. These are costs that are paid by the business for the day to day running of the business. The exchange of goods or services for an agreed sum of money. Gross profit minus all operating expenses such as wages and overheads. What am I Gross profit Start-up costs Turnover Running costs Sales Net profit
44 Making a profit Cost and figures detailed for these questions are fictitious. Madame Tussauds has decided to stage a special week long (7 days) Hollywood vs. Bollywood event at the attraction 7,500 visitors are expected every day and tickets are being sold at per person Once at the attraction, they expect the average person to spend a further 6.27 on merchandise Using worksheet 12, complete the profit and loss sheet for the event
45 Making a profit: Answers Cost and figures detailed for these questions are fictitious. Turnover Gross profit Net profit Gross profit margin Net profit margin 1,613,850 1,348, , % 47.63%
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