Marketing and Sales
What is the
marketing mix?
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’…
The marketing mix
Product
Price
Promotion
Place
Consider each of the Ps.
What do you think each one
is about?
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
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
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
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
Exploring the marketing mix for
Madame Tussauds London
Product
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
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
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?
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
Exploring the marketing mix for
Madame Tussauds London
Price
Are there different prices for
different groups? Suggest
reasons for any variations in
entry price.
What is Madame
Tussauds pricing?
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?
What is Madame Tussauds
competitive set?
Madame Tussauds competitive set
Any attraction home to London
Photo credit: John Byer
Exploring the marketing mix for
Madame Tussauds London
Place
Place
• Place includes all the
activities involved in
making the product
available to
consumers
• For example…
Place
• …the attraction itself
• …buying tickets through
third party agents
• …buying tickets on the telephone
• …online booking
Place
• Location and
access are
important factors
Think about the following aspects
when completing this part of the
marketing mix for Madame Tussauds…
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?
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?
Exploring the marketing mix for
Madame Tussauds London
Promotion
Brainstorming promotion
Promotion
Meet your match
• Using the worksheet, can you
match the promotional technique
to its correct explanation?
Promotion
Promotional
technique
Definition
Advertising
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.
Sales Promotion
Short-term tactical marketing tools which are used to
achieve specific marketing objectives, for example money
off vouchers, free gifts with purchase and competitions.
Public Relations
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.
Personal Selling
Training staff to be more effective in making sales to
people who approach the business for information and
help.
Promotion
Promotional
technique
Definition
Direct marketing
Involves sending or giving promotional materials directly
to customers either by post, over the telephone, email or
door-to-door.
Sponsorship
When one organisation gives financial (or other) support
to something in exchange for their name being
associated with that product or event.
Events
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.
Displays
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.
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?
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…
Advertising
These appeared on posters sites around London.
Sales promotion
Madame Tussauds
distributed a
discounted ticket
voucher valid for a
set period of time.
Direct marketing
Madame Tussauds
sends materials to
schools on their
database informing
them of their
educational experiences
and products.
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.
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
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
Understanding the costs of
running a business
Costs of running a business
Brainstorm: what type of costs do you think Madame
Tussauds might have to pay out as a business?
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
Matching exercise
Running costs
Start-up costs
Turnover
Gross profit
Net profit
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.
Sales
What am I
Matching exercise: Answers
Definition
What am I
The difference between total revenue from sales
and the total cost of purchases or materials.
Gross profit
These are costs that are paid by the business at
the beginning to start up the business.
Start-up costs
The amount of business done by a company
during a specified period.
Turnover
These are costs that are paid by the business for
the day to day running of the business.
Running costs
The exchange of goods or services for an agreed
sum of money.
Sales
Gross profit minus all operating expenses such
as wages and overheads.
Net profit
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 £24.47 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
Making a profit: Answers
Cost and figures detailed for these questions are fictitious.
Turnover
£1,613,850
Gross profit
£1,348,600
Net profit
£768,600
Gross profit
margin
Net profit
margin
83.56%
47.63%