Marketing and Sales - Madame Tussauds
Marketing and Sales - Madame Tussauds
Marketing and Sales - Madame Tussauds
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<strong>Marketing</strong> <strong>and</strong> <strong>Sales</strong>
What is the<br />
marketing mix?
The marketing mix<br />
• The marketing mix is another tool used by organisations<br />
• Each leisure <strong>and</strong> tourism business will have their own<br />
marketing mix which works for them<br />
• It is the balance of ‘the fours Ps’…
The marketing mix<br />
Product<br />
Price<br />
Promotion Place
Consider each of the Ps.<br />
What do you think each one<br />
is about?
The marketing mix<br />
Product<br />
• This is what an<br />
organisation provides<br />
for its customers<br />
• It is what they buy or<br />
experience<br />
• It can be tangible or<br />
intangible<br />
• The right product is<br />
one that people<br />
actually want to buy
The marketing mix<br />
Price<br />
• This is what a customer<br />
pays for a product <strong>and</strong><br />
service<br />
• The right price is one that<br />
people are prepared to<br />
pay<br />
• It also allows the<br />
organisation to make a<br />
profit
The marketing mix<br />
Promotion<br />
• Promotion covers all of<br />
the ways in which a<br />
leisure <strong>and</strong> tourism<br />
organisation tells<br />
customers about its<br />
products <strong>and</strong> services<br />
• There are many different<br />
types of promotional<br />
techniques<br />
• The right promotion is<br />
one that attracts people<br />
to use or buy their<br />
products <strong>and</strong> services
The marketing mix<br />
Place<br />
• Place includes all the activities<br />
involved in making the product<br />
available to customers<br />
• The right place makes the<br />
product or service accessible<br />
to customers so that they can<br />
actually buy it
Exploring the marketing mix for<br />
<strong>Madame</strong> <strong>Tussauds</strong> London<br />
Product
Product<br />
What about me?<br />
• It is important that the right<br />
product gets to the right people<br />
• Describe parts of he product at<br />
<strong>Madame</strong> <strong>Tussauds</strong> that have<br />
been designed to meet the<br />
needs of the following groups:<br />
– Ethnic groups<br />
– Schools<br />
– Corporate guests<br />
– Families
Product<br />
SCREAM the br<strong>and</strong> name<br />
• As part of their extended product<br />
offering, there is an attraction called<br />
<strong>Madame</strong> <strong>Tussauds</strong> SCREAM<br />
• Visitors come face-to-face with live<br />
serial killers, horrors from the past <strong>and</strong><br />
instruments of torture<br />
• Can you suggest another name for this<br />
aspect of <strong>Madame</strong> <strong>Tussauds</strong>’ product<br />
offering? What are the reasons for your<br />
choice?<br />
• Design a new logo for the experience<br />
focusing on the colour <strong>and</strong> style of the<br />
lettering you use
Product<br />
Enjoy the Spirit of London<br />
• At <strong>Madame</strong> <strong>Tussauds</strong> there is also a<br />
ride called the Spirit of London<br />
• Visitors hop into a black cab <strong>and</strong><br />
take a journey back in time. These<br />
special mini versions of London’s<br />
world famous taxis have room for<br />
two <strong>and</strong> drive visitors through the<br />
historic <strong>and</strong> cultural events that have<br />
shaped London into the great city it<br />
is today<br />
• Can you develop a new ride for<br />
<strong>Madame</strong> <strong>Tussauds</strong>?<br />
• What is the reasoning behind your<br />
new product?
Product<br />
New news<br />
• Create some new news for<br />
<strong>Madame</strong> <strong>Tussauds</strong> by<br />
introducing one of the<br />
following:<br />
– A new wax figure.<br />
Justify your choice.<br />
When will you launch it?<br />
– A new product for<br />
schools
Exploring the marketing mix for<br />
<strong>Madame</strong> <strong>Tussauds</strong> London<br />
Price
What is <strong>Madame</strong><br />
<strong>Tussauds</strong> pricing?<br />
How do their prices<br />
compare with those of<br />
their competitors?<br />
Are there different prices for<br />
different groups? Suggest<br />
reasons for any variations in<br />
entry price.<br />
Are there any costs for additional<br />
facilities? How do these<br />
compare with those of others in<br />
the market?
What is <strong>Madame</strong> <strong>Tussauds</strong><br />
competitive set?
<strong>Madame</strong> <strong>Tussauds</strong> competitive set<br />
Any attraction home to London<br />
Photo credit: John Byer
Exploring the marketing mix for<br />
<strong>Madame</strong> <strong>Tussauds</strong> London<br />
Place
Place<br />
• Place includes all the<br />
activities involved in<br />
making the product<br />
available to<br />
consumers<br />
• For example…
• …the attraction itself<br />
• …buying tickets through<br />
third party agents<br />
Place<br />
• …buying tickets on the telephone<br />
• …online booking
Place<br />
• Location <strong>and</strong><br />
access are<br />
important factors
Think about the following aspects<br />
when completing this part of the<br />
marketing mix for <strong>Madame</strong> <strong>Tussauds</strong>…<br />
<strong>Tussauds</strong>
• When is it open?<br />
Exploring ‘place’ for<br />
<strong>Madame</strong> <strong>Tussauds</strong><br />
• How would you plan your journey to the attraction?<br />
• How easy is it to get there?<br />
• Are there special facilities for people with special needs?<br />
• Do you foresee any problems? If so, do these apply to<br />
most London tourist attractions?<br />
• Is there a better location?<br />
• What other attractions are in the vicinity?<br />
• Can you design a route on foot to another attraction?
Exploring ‘place’ for<br />
<strong>Madame</strong> <strong>Tussauds</strong><br />
• If <strong>Madame</strong> <strong>Tussauds</strong><br />
offered a combined ticket<br />
price to another London<br />
based Merlin attraction –<br />
i.e. The London<br />
Dungeons, The London<br />
Eye or The London<br />
Aquarium – can you easily<br />
design a route from one<br />
attraction to the next?
Exploring the marketing mix for<br />
<strong>Madame</strong> <strong>Tussauds</strong> London<br />
Promotion
Brainstorming promotion
Promotion<br />
Meet your match<br />
• Using the worksheet, can you<br />
match the promotional technique<br />
to its correct explanation?
Promotional<br />
technique<br />
Advertising<br />
<strong>Sales</strong> Promotion<br />
Public Relations<br />
Personal Selling<br />
Promotion<br />
Definition<br />
Displaying or broadcasting information about a particular<br />
product or service. You have to pay for the space you<br />
feature on. Can be carried out in a number of ways,<br />
including: television, radio, the internet <strong>and</strong> newspapers.<br />
Short-term tactical marketing tools which are used to<br />
achieve specific marketing objectives, for example money<br />
off vouchers, free gifts with purchase <strong>and</strong> competitions.<br />
Relies on persuading newspapers <strong>and</strong> publications to<br />
feature a product, attraction or service as part of its<br />
editorial content. One way this is achieved is by sending<br />
press releases to journalists.<br />
Training staff to be more effective in making sales to<br />
people who approach the business for information <strong>and</strong><br />
help.
Promotional<br />
technique<br />
Direct marketing<br />
Sponsorship<br />
Events<br />
Displays<br />
Promotion<br />
Definition<br />
Involves sending or giving promotional materials directly<br />
to customers either by post, over the telephone, email or<br />
door-to-door.<br />
When one organisation gives financial (or other) support<br />
to something in exchange for their name being<br />
associated with that product or event.<br />
Planned <strong>and</strong> organised occasion(s) that is used to raise<br />
awareness of the product or service, or to drive visitors to<br />
purchase the product or service.<br />
If attractive <strong>and</strong> eye-catching, these can be quite effective<br />
in creating interest <strong>and</strong> sales. These often feature at<br />
major leisure, travel or tourism exhibitions.
Promotion<br />
What an advert!<br />
• Can you list three adverts that<br />
you have seen or heard that<br />
have encouraged you to buy a<br />
product or service?<br />
• What do you feel makes these<br />
adverts successful?
<strong>Madame</strong> <strong>Tussauds</strong> uses a variety of<br />
promotional techniques to tell customers<br />
about its attraction, what it has to offer<br />
<strong>and</strong> to encourage them to visit.<br />
Here are four examples…<br />
examples
Advertising<br />
These appeared on posters sites around London.
<strong>Sales</strong> promotion<br />
<strong>Madame</strong> <strong>Tussauds</strong><br />
distributed a<br />
discounted ticket<br />
voucher valid for a<br />
set period of time.
Direct marketing<br />
<strong>Madame</strong> <strong>Tussauds</strong><br />
sends materials to<br />
schools on their<br />
database informing<br />
them of their<br />
educational experiences<br />
<strong>and</strong> products.
Public relations<br />
<strong>Madame</strong> <strong>Tussauds</strong> provides<br />
press releases to journalists.<br />
For example, this press<br />
release spills the beans on<br />
some of the attraction’s<br />
interesting facts <strong>and</strong> figures.<br />
The aim of the press release<br />
is to encourage journalists to<br />
write about <strong>Madame</strong><br />
<strong>Tussauds</strong>.
You’ve got the job!<br />
Promotion<br />
• In your new role as <strong>Marketing</strong> Manager at <strong>Madame</strong><br />
<strong>Tussauds</strong> you have been briefed to:<br />
– Plan a special event at <strong>Madame</strong> <strong>Tussauds</strong> as another<br />
way to attract visitors<br />
– Develop two different pieces of communication to<br />
promote the event e.g. advertising <strong>and</strong> PR. Provide<br />
reasons for your choices
Promotional portfolio<br />
Promotion<br />
• Develop a promotional portfolio for <strong>Madame</strong> <strong>Tussauds</strong>.<br />
For example, you could:<br />
– Pick up leaflets at the attraction<br />
– Take photos of any posters you may spot<br />
– Cut out ads you may find<br />
– Print out any online offers you may discover<br />
• Your portfolio can act as a useful reference point of the<br />
different types of promotional techniques available
Underst<strong>and</strong>ing the costs of<br />
running a business
Costs of running a business<br />
Brainstorm: what type of costs do you think <strong>Madame</strong><br />
<strong>Tussauds</strong> might have to pay out as a business?
Costs of running a business<br />
• In order for a business to be successful, it needs to<br />
make money<br />
• Therefore, <strong>Madame</strong> <strong>Tussauds</strong> needs to work out exactly<br />
how much it costs to offer their services, <strong>and</strong> then add a<br />
percentage to make a profit<br />
• Can you write definitions for:<br />
– Running costs<br />
– Start-up costs<br />
– Turnover<br />
– <strong>Sales</strong><br />
– Gross profit<br />
– Net profit
Matching exercise<br />
Running costs Start-up costs Turnover<br />
Definition<br />
Gross profit Net profit<br />
The difference between total revenue from sales<br />
<strong>and</strong> the total cost of purchases or materials.<br />
These are costs that are paid by the business at<br />
the beginning to start up the business.<br />
The amount of business done by a company<br />
during a specified period.<br />
These are costs that are paid by the business for<br />
the day to day running of the business.<br />
The exchange of goods or services for an agreed<br />
sum of money.<br />
Gross profit minus all operating expenses such<br />
as wages <strong>and</strong> overheads.<br />
<strong>Sales</strong><br />
What am I
Matching exercise: Answers<br />
Definition<br />
The difference between total revenue from sales<br />
<strong>and</strong> the total cost of purchases or materials.<br />
These are costs that are paid by the business at<br />
the beginning to start up the business.<br />
The amount of business done by a company<br />
during a specified period.<br />
These are costs that are paid by the business for<br />
the day to day running of the business.<br />
The exchange of goods or services for an agreed<br />
sum of money.<br />
Gross profit minus all operating expenses such<br />
as wages <strong>and</strong> overheads.<br />
What am I<br />
Gross profit<br />
Start-up costs<br />
Turnover<br />
Running costs<br />
<strong>Sales</strong><br />
Net profit
Cost <strong>and</strong> figures detailed for these questions are fictitious.<br />
Making a profit<br />
• <strong>Madame</strong> <strong>Tussauds</strong> has<br />
decided to stage a special<br />
week long (7 days) Hollywood<br />
vs. Bollywood event at the<br />
attraction<br />
• 7,500 visitors are expected<br />
every day <strong>and</strong> tickets are being<br />
sold at £24.47 per person<br />
• Once at the attraction, they<br />
expect the average person to<br />
spend a further £6.27 on<br />
merch<strong>and</strong>ise<br />
• Using worksheet 12, complete<br />
the profit <strong>and</strong> loss sheet for the<br />
event
Making a profit: Answers<br />
Cost <strong>and</strong> figures detailed for these questions are fictitious.<br />
Turnover<br />
Gross profit<br />
Net profit<br />
Gross profit<br />
margin<br />
Net profit<br />
margin<br />
£1,613,850<br />
£1,348,600<br />
£768,600<br />
83.56%<br />
47.63%
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