Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
MKT 3095 Cultural and Heritage Marketing
Name: Tiezheng Yuan
Student Number: 110562836
Degree Title: NN52 Marketing and Ma...
Name: Tiezheng Yuan
Student Number: 110562836
1
1. Marketing Analysis & Strategy
1.1 Background
The National Army Museum (...
Name: Tiezheng Yuan
Student Number: 110562836
2
 £11.5 million fund by Heritage Lottery Fund for upgrading of facilities
...
Name: Tiezheng Yuan
Student Number: 110562836
3
 Longer opening hours to attract more
audiences to NAM
 Make use of stro...
Name: Tiezheng Yuan
Student Number: 110562836
4
2. Marketing Mix
This section will provide recommendations for NAM using m...
Name: Tiezheng Yuan
Student Number: 110562836
5
engage in a mission while touring the exhibition. Besides that, there is a...
Name: Tiezheng Yuan
Student Number: 110562836
6
pay (Avlonitis and Indounas, 2006).
Rationale for Recommendation:
Generall...
Name: Tiezheng Yuan
Student Number: 110562836
7
2.2.2 Segmentation Strategy
Segmentation strategy could be used in museum ...
Name: Tiezheng Yuan
Student Number: 110562836
8
Gurel and Kaval (2010) mentioned that in today’s complex society, combined...
Name: Tiezheng Yuan
Student Number: 110562836
9
competition news on their own Facebook wall. Participants will have one mo...
Name: Tiezheng Yuan
Student Number: 110562836
10
at specific exhibits to read up in detail. The aim of the online virtual ...
Name: Tiezheng Yuan
Student Number: 110562836
11
How it help to achieve objective 1:
The computer work stations will infor...
Name: Tiezheng Yuan
Student Number: 110562836
12
trainees with feedback on their strengths and any development needs. Base...
Name: Tiezheng Yuan
Student Number: 110562836
13
also integrating more multisensory experiences to provide an immersive ex...
Name: Tiezheng Yuan
Student Number: 110562836
14
3. Budgets, Scheduling and Implementation
This section will report on the...
Name: Tiezheng Yuan
Student Number: 110562836
15
Price
Exclusive Patron Circle Business
manager
Business manager will cont...
Name: Tiezheng Yuan
Student Number: 110562836
16
List of References
Abernethy, A.M. and Butler, D.D. (1993) 'Promoting cus...
Name: Tiezheng Yuan
Student Number: 110562836
17
Kotler, N. (2004) 'New ways of experiencing culture: the role of museums ...
Name: Tiezheng Yuan
Student Number: 110562836
18
Upcoming SlideShare
Loading in …5
×

Cultural Semester 2 assignment

341 views

Published on

  • This is Amazing! He Won the Lotto Jackpot 7 Times, and Doesn't Mind Revealing His Secrets? ♥♥♥ http://t.cn/Airf5UFH
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Your opinions matter! get paid for them! click here for more info...■■■ https://tinyurl.com/make2793amonth
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Cultural Semester 2 assignment

  1. 1. MKT 3095 Cultural and Heritage Marketing Name: Tiezheng Yuan Student Number: 110562836 Degree Title: NN52 Marketing and Management Word Count: 1986
  2. 2. Name: Tiezheng Yuan Student Number: 110562836 1 1. Marketing Analysis & Strategy 1.1 Background The National Army Museum (NAM) was first conceived in the late 1950s, and it is currently located in the Chelsea district of central London. It was established by Royal Charter in 1960, with the intention of collecting, preserving, and exhibiting objects and records relating to the regular and auxiliary forces of the British Army and of the Commonwealth, and to encourage research into their history and traditions (NAM, 2014). The current vision of the NAM is to be the leading authority on the history of the British Army and a first class museum that moves, inspires, challenges, educates and entertains (NAM, 2014). According to NAM annual review report published in 2013, there were a total of 250000 visitors that visited NAM. Of the 250000 visitors, 23000 (students) visited NAM for learning purpose and majority visited NAM for special exhibitions and permanent galleries. NAM is currently temporarily closed for upgrading work, it will open in 2016. Table 1 summarises the current marketing information of NAM based on 7P’s. Table 2 will report on the SWOT analysis conducted on NAM. Table 1. NAM’s Current Marketing Information 7P’s Product Celebrity Speakers  Television presenter Dan Snow special talk to audiences  Politician and diplomatLord Ashdown,in-depth discussion on military  Historian Antony Beevor, lessons on British Army history Outreach Events  Sandhurst Open Day - A rare look inside Sandhurst Royal Military Academy as it holds its annual Heritage Day  TankFest - Get up close and personal to the Museum's rarely seen vehicle collection and hands-on with fascinating weapons and uniforms Lunchtime Lectures  Hear guestspeakers examine a wealth ofenthralling topics  Watch video archive Exhibitions  Touring exhibitions with other military museums across the country  Online exhibition  Kids zone  Learning tours and programmes for students and visitors  Research - Advice on carrying out genealogical research and curatorial assistance in identifying and interpreting militaryartefacts Price  Free Admission  Celebrity events and tickets from £10  Income through Friends ofNAM £20 for joining  Income through Patrons  Generate donation through provide individuals  Generate donation through corporate partnerships  Grants by Heritage Lottery Fund  Income from museum shop Place  Purchase tickets for events via NAM’s website  Purchase tickets for events via NAM’s reception  Located at the centre of London  Easilyaccessible via public transport  Open at 10:00am and close at 5:30pm everyday Promotion  Use of social media: Facebook, Twitter, YouTube video and flickr  Use of website (around 2 million page views)  Newsletter  Press release Physical Evidence Non-tangible physical evidence:  Online exhibition Tangible physical evidence:
  3. 3. Name: Tiezheng Yuan Student Number: 110562836 2  £11.5 million fund by Heritage Lottery Fund for upgrading of facilities  Kids zone  Museum shop  Book shop  Picture library  Comfortable Templer study centre  Outstanding exhibition room  Café/restaurant Process  Visitors purchase tickets for celebrity or guest speaker event, purchase can be made online or through NAM reception  Exhibition starts from ground floor: The main temporary exhibition space where medals and bayonets are displayed. The 1st floor: Making Of Britain 1066-1783, and Changing the world 1784-1904. 2nd floor: World wars 1905- 1945. 3rd and 4th floor National service 1947-1963. During the tour, it is optional for visitors to go to the café/restaurant. The tour ends at the museum shop. People  Receptionist  Corporate partners  Tour guide  Volunteers  Celebrity and guest speakers  Security guards  People work at the print room  Staff behind the scene (e.g. marketers, human resource, finance department and purchasing department employees) Table 2. SWOT Analysis Strengths  Awarded full accreditation by Arts Council England (ACE)  £11.5 million grant by Heritage Lottery Fund  Located at the heart of London  Easily accessible via public transport  Large variety of collections  Strong connections with current and retired army personnel  Facilities and equipment for research Weakness  Lacking on marketing effort to raise awareness  Low attendance of young audience  Few followers on social media, Facebook: 16,304, Twitter: 5,354  Low attendance of learning audience  Opening hours too short  No clear marketing effort targeting different segments Opportunities  Mintel (2013) indicated that majority of UK consumers (67%) shown likelihood of visiting museums in the near future  The new NAM building serves as a potential attraction for new and old audiences (Guardian, 2014)  87% of UK population has internet access, 55% of UK adults use social networking and 61% of population has mobile phone subscriptions (Ofcom, 2013). Opportunity for digital marketing  Mintel (2013) reported that 93% of those aged between 12 and 17 years were mobile phone users and 81% of them are smartphone users. Opportunity to reach young audiences through mobile marketing Threats  2 years of facilities upgrading might result in potential loss of income and audiences  Direct competition from 60 other military museums across UK  Direct competition from Imperial War Museum (IWM) which is also situated in London  IWM offer a wider range of activities, such as venue hire and filming, displaying collections from both Army and Air force (IWM, 2014). It poses a threat on NAM as visitors may choose IWM over NAM  Competition from other museums in London, such as London Transport Museum and The Guards Museum  Competition from other attractions in
  4. 4. Name: Tiezheng Yuan Student Number: 110562836 3  Longer opening hours to attract more audiences to NAM  Make use of strong connections to reach out to wider audience  Make use of research facilities to connect to universities and historians  Work with schools and British Army London, such as Tower bridge exhibition  The Arts Council England has announced a potential 10% funding cut in the next few years (BBC, 2013). 1.2 Stakeholder Analysis of NAM Table 3 illustrates four different kinds of stakeholders (publics) of NAM following the resources conversion model suggested by Andreasen and Kotler (2008). Table 3. NAM’s Stakeholders Input Publics Internal Publics Partner Publics Consuming Publics  Donors  Arts Council England  City of London Corporation  The National Lottery  Ministry of Defence  Directors  NAM’s staff  Volunteers  Trustees  BCB International  Cadogan Group Limited  The Astor Foundation  The Steel Charitable Trust  Trade Unions  Visitors/users  Schools  Universities  Local residents  Historian  Local businesses  Activists  Media 1.3 Marketing Objectives Based on the knowledge of NAM and SWOT analysis conducted, several SMART objectives are identified. The objectives are: 1. To increase the number of visitors from 250000 in 2014 to 400000 by December 2016  Increase student visitors from 23000 in 2014 to 50000 by December 2016  Increase young audiences (age 10-25 years old) by 50%  Increase the number of social media followers by 100%  Increase individual and family visits by 60% 2. Increase grants and donations from £235,678 in 2012 to £500,000 by December 2016 3. Increase total income generated from £397,710 in 2012 to £600,000 by December 2016 The marketing plan will focus on objective 1 rather than objective 2 and 3, in order to give an in-depth discussion. Performance indicators will base on visitor numbers, number of school learning tours, number of Facebook and Twitter followers, number of Templer study users and demographic breakdown during visits (see Section 3.1 for detailed implementation).
  5. 5. Name: Tiezheng Yuan Student Number: 110562836 4 2. Marketing Mix This section will provide recommendations for NAM using marketing mix 7ps framework. It will also demonstrate both applied knowledge and understanding of Cultural and heritage marketing, supported with academic review. 2.1 Product Description: American Marketing Association (2014) define product as a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use; usually a mix of tangible and intangible forms. Shostack (1985) mentioned that the museum ‘product’ is delivered in both tangible form (physical environment or site which encompasses the land or building area, shape, lighting) and intangible form (means of orientating the visitor, queues, waiting, crowding, and methods of stimulating interest and engagement). Rationale for Recommendation: Goulding (2000) argue that in the case of museums, the effectiveness of communicating historical information, the essential product, is vital in audience development. The ability to construct images, conveys information, and engages the visitor are some of the important elements that museum ‘products’ should have. Mencarelli et al. (2010) emphases that, museums should recognise that contemporary audiences wants to actively participate in the ‘product’ production process. In addition, Mencarelli et al. (2010) also mentioned that ‘product’ consumption in museums should be thought of more as a form of production, as the offer is defined only through interaction with consumers. Kotler (2004) suggested that the marketing strategy of “appropriation” where consumers can jointly construct the experience. In this case, consumers become actors in their own experience in what is known as “active entrenchment.” Based on the arguments of the scholars, it implies that NAM needs to deliver an interactive experience (product) in order to attract more audiences. Therefore, some interactive events are recommended in 2.1.1 – 2.1.3 to attract more audiences so as to fulfil objective 1. 2.1.1 The Unique Experience The entire exhibition of NAM could be designed to immerse visitors. The objective is no longer to place visitors at a distance from the representation, but to plunge them into the heart of it. Visitors become the actors of the exhibition. For example at the beginning of the exhibition each visitor would receive a quiz sheet and start from private (army) rank. On each exhibition floor, there would be clues to the quiz and visitors could answer the quiz base on the descriptions and information provided on the exhibitions. Finally, on the top floor, the quiz would be collected by a member of staff and total scores tallied. Based on the score, visitors would be promoted to a higher rank (example, Major). Next, visitors could pick a war hero of the rank and read up on their war stories and fate. Visitors have a choice not to participate in the quiz. How it help to achieve objective 1: The unique experience can specifically target young audiences and family visits. Young audiences would find the whole exhibition process more interesting as they
  6. 6. Name: Tiezheng Yuan Student Number: 110562836 5 engage in a mission while touring the exhibition. Besides that, there is a higher likelihood that young audiences would learn more during the process as they read the descriptions carefully while searching for answers. The quiz could be changed monthly to encourage repeat visits, therefore, increasing the number of visits. 2.1.2 The NAM Amazing Race NAM could organise a big event such as ‘The NAM Amazing Race’ in July (summer holiday) every year. Participants could form teams of 3-6, each participant paying an entry fee of £10. The competition will be held within the NAM building itself. Teams would need to complete certain missions at each stage of the race. Missions could include basic and specific military knowledge, some simple obstacle challenges and certain amount of planning and teamwork. Teams are allowed to share, exchange or steal information from other teams. The aim of the race is to make participating teams to work as a military unit. The fastest team that completes all the missions wins the race. Prizes could be reproduction of battle medals. How it help to achieve objective 1: Through this event, publicity would be generated and more people would be aware of NAM. It would also attract young audiences as young people are active and would take part in this kind of race. Families would also take part since it is in teams. NAM could make this event bigger as it grows in popularity. The amazing race could include searching for clues and complete missions across England. It could last for a few days and broadcasted live on television. As more people learn about NAM, more people would be attracted to visit NAM. 2.1.3 Story Telling for Young Audiences NAM could hold weekly story telling session for young audiences. It could invite primary school students to attend, as there are more than 1000 primary schools in London. Besides storytelling, there could be some performances and magic show to entertain the young audiences. Volunteers could be invited to conduct the performances. After the performances, students would go for a guided tour. Entry fee would be £1. How it help to achieve objective 1: The aim of this event is to stimulate interest among students to learn more about the exhibits in NAM and also to encourage students to bring family members along for visits, therefore, achieving objective 1. 2.2 Price Description: Price is defined as the amount of money charged for a good or service (Baines et al., 2011). Price is the only part of the marketing mix that generates revenue, as product, place and promotion are all related to expenditure (Rentschler et al., 2007). Generally price is an important cue to quality (Lockshin and Rhodus, 1993). Price is determined by the discovery of what customers perceive is the value of the product or service. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to
  7. 7. Name: Tiezheng Yuan Student Number: 110562836 6 pay (Avlonitis and Indounas, 2006). Rationale for Recommendation: Generally museum pricing strategy can be classified into four categories: Utilitarian, Idealist, Integrity and Access pricing strategy (Rentschler et al., 2007). In the UK, the most common pricing strategy for museums is the Access pricing strategy and it is also the pricing strategy adopted by NAM. Access pricing strategy helps to increase visitation by charging a minimal or free admission fee. The reasons for NAM to adopt Access pricing strategy are three-fold. Firstly, many scholars argues that charging admission affects visitation and that charging admission at museums affects certain segments of society and consequently affects overall visitation. A study conducted by Anderson (1998) concludes that implementing a charge at the British Museum would likely cause a decline in attendances. This is supported by another study conducted by Wiggins (2003), who discovered that admission fees would discourage low-income segment from visiting museums. Secondly, the vision of NAM is to inspire and educate, not making profits. Thirdly, it helps to achieve objective 1. On the other hand, museums in the UK are facing funding cuts and many were forced to become financially independent. Therefore, income needs to be generated and business pricing strategy needs to be adopted in certain aspects of museum operation. Many museums adopt business pricing strategy in areas such as museum shop, café/restaurant, friends and patrons registration. Generally there are five business pricing strategy adopted by museums. They are skimming, penetration, neutral, segmentation and yield-based pricing. The two most suitable pricing strategies NAM could adopt are skimming and segmentation. Skimming is 'designed to capture high margins at the expense of high sales volumes in the knowledge that 'buyers who value prestige and exclusivity will pay more, simply because they know others can't buy the product (Nagle and Holden, 1987). Segmentation is employing a range of strategies simultaneously. Using appropriate pricing strategies is vital in increasing the number of audiences. 2.2.1 Exclusive Patron Circle NAM could have exclusive patron circles using skimming pricing strategy. Individuals need to pay a certain amount of membership fee to enter the circle. They would also enjoy certain privileges joining. For example, there could be three circles. The Major’s circle for those who pay more than £1000 and benefits include annual drinks reception and free lectures, and exclusive tours of other military museums and private collections with curators. The Brigadier’s circle for those who pay more than £5000 and benefits include annual lunch with Director General and all other benefits that Major circle enjoy. Lastly, the General’s circle, for those who pay more than £10000 and benefits include annual lunch with Chairman, personal tour and all other benefits that other circles enjoy. How it help to achieve objective 1: The exclusive patron circle could effectively target the wealthy segment of NAM audiences, such as academic scholars would join for lectures and academic discussions. It could also be a meeting place for retired army personnel and private functions could also be held. It makes NAM a venue for people to interact and socialise. It also draws audiences from all walks of life to NAM and therefore achieving objective 1.
  8. 8. Name: Tiezheng Yuan Student Number: 110562836 7 2.2.2 Segmentation Strategy Segmentation strategy could be used in museum shop and café. For example, students would enjoy 20% discount purchasing foods and gifts in NAM. During school visits (storytelling in section 2.1.3) and events (amazing race in section 2.1.2), special discounts could be given to stimulate purchase. Besides that, student discount could also be given for purchasing foods in NAM’s restaurants during or near exam period. This is to encourage students to use the Templer study area for revision. Free computer and internet connection could also be provided. How it help to achieve objective 1: Giving student discounts would attract more young audiences to NAM as many would want to take advantage of the privileges given. Providing free computer and internet connection would also attract more general audiences to use the Templer study area, therefore achieving objective 1. 2.2.3 Flexible Pricing for Celebrity and Guest Speaker Event The current NAM pricing strategy for celebrity and guest speaker event is standardise £10 for all speakers. However, Arnold et al. (1989) argue that prices will have to become more flexible and less standardized in order to capitalize on the different price/value perceptions of consumers and also adapt to the changing environment. Similarly, Pitt et al. (1997) also argue that pricing needs to be flexible in order to capture more consumers and factors such as availability, price sensitivity and perceived value needs to be considered when setting price. It is therefore recommended for NAM to adopt a flexible pricing strategy for celebrity and guest speaker events. NAM’s pricing strategy could be based on the laws of price elasticity of demand. Higher prices could be set for popular (high in demand) speakers and lower price could be set for less popular speakers. Lower prices could be set for early bookings and higher prices could be set for last minute bookings. How it help to achieve objective 1: The benefit of flexible pricing is that it allows audiences to have a rough estimate of the quality of the speakers. As mentioned by Lockshin and Rhodus (1993), generally price is an important cue to quality for consumers. Therefore, by inviting more popular speakers and setting appropriate prices, more audiences would be attracted to attend celebrity and guest speaker events. 2.3 Promotion Description:  Chartered Institute of Marketing (2014) define promotion as the way a company communicates what it does and what it can offer customer.  Promotion includes activities such as branding, direct and digital marketing.  Beaven and Scotti (1990) emphases that the notion of promotion needs to be reconceptualised in service-oriented organisations. It should not be one-way communication or associated with hype, puffery, and exaggeration. Promotion should help to create meaningful dialogue with customers, it must deliver a consistent message and it should attract the attentions of customers. Rationale for Recommendation:
  9. 9. Name: Tiezheng Yuan Student Number: 110562836 8 Gurel and Kaval (2010) mentioned that in today’s complex society, combined with high public expectation of services provided; demand that museums effectively promote their work like any other service. Mclean (1995) emphases promotion as an extremely important method of communication for museums. Many authors also argue that successful promotion means building relationship with audiences through exchange of information and ideas. It also requires organisations to listen and communicate with their publics and be responsive to them. Kreisberg (1998) emphases that promotion is used to nurture dialogue with various groups whose interest is vital for the museum to achieve its objectives. (Grunig et al., 1995) define four models of promotion to explain promotional practices of organisations. The models are propaganda, public information, scientific persuasion and two-way symmetrical. The first two models are one-way, used to give information about the organisation to the public; the other two models are two- way and rely on research. Many scholars argue that the two-way symmetrical model is the ideal one for the organisations to be both effective and ethical. Two-way symmetrical model seeks to establish mutual understanding between the organisation and the publics through dialogue. It is therefore recommended for NAM to adopt the two-way symmetrical model as its promotion strategy. Besides identifying the appropriate promotional model, NAM also needs to identify its most effective promotional platform to reach its target audience. According to Lagrosen and Grunden (2014), the use of social media has become more popular as a marketing tool for the establishment and management of customer relationships. The use of social media in marketing is based on a multi-way interaction approach, in which the roles of sender and receiver are mixed. Social media can create value fusion, in which value is created for a whole network including both customers and companies. It implies that making use of social media will be the most effective platform to engage with NAM’s potential visitors. Facebook is the most prominent platform in social networking, and has over 1 billion users. Twitter has also in excess of 150 million users. NAM has 16304 and 5354 followers on Facebook and Twitter respectively, with relatively few comments, ‘likes’ and ‘shares’. The content on NAM’s Facebook is neither exciting nor enticing. This implies that there is huge potential for NAM to raise awareness and engage with potential audience if NAM better make use of Facebook and Twitter. Thus, the following recommendations will aim to initiate meaningful dialogue (two- way symmetrical model) through the use of Facebook (social media platform), resulting in increasing visitation rates. 2.3.1 Drawing and Picture Competition on Facebook NAM could create interesting drawing and picture competition on Facebook, which encourages followers to engage and interact with NAM or even share the post. For example, NAM could firstly set a theme for the competition such as ‘Bravery’. Next, participants have to upload a picture, depicting themselves related to the theme ‘Bravery’. Similarly, participants could also upload drawings related to the theme. Individuals can only be allowed to join the competition by becoming a follower of NAM on Facebook. Besides that, individuals also need to ‘like’ and ‘share’ the
  10. 10. Name: Tiezheng Yuan Student Number: 110562836 9 competition news on their own Facebook wall. Participants will have one month to generate votes for their picture and drawing. The picture and drawing that generate the highest vote in a month will be the winner. The winners will be given a souvenir worth £30 from NAM museum shop. The competition will be held monthly and participants need to ‘like’ and ‘share’ the competition news every time they join. How it help to achieve objective 1: When participants become a follower of NAM on Facebook, they will receive news feeds and updates of NAM events; this will improve the effectiveness of NAM’s promotional activities. Besides that, by asking participants to ‘like’ and ‘share’ the competition news, it increases people’s awareness of NAM as friends of the participants are able to see the post. In addition, when participants share their picture or drawing asking for votes from their friends or forum, it also increases people awareness of NAM. Lastly, by giving out souvenirs, it can indirectly advertise the products that the museum shop have. All this will help to raise awareness and thus increase visitation. 2.4 Place Description:  Place means where customers purchase a product or service (Chartered Institute of Marketing, 2014).  Place also means ways of displaying product. It could be in a physical shop or via the internet. Rationale for Recommendation: Mencarelli et al. (2010) mentioned that digital technology has created new practices in cultural consumption patterns. With the advent of world wide web, it is sometimes no longer necessary to go out visit a museum. In the ever expanding world of virtual reality, it has transformed the way culture is presented and the choices of individuals spending their leisure time. As a result, many cultural structures have set out to include these new technologies in their offer, so as to continue drawing in the crowds (Kotler, 2004). There is an increase in popularity of e-museums and e-galleries, as it offers immediate, constraint-free visits. Examples include the entirely virtual I Galerie du Mudam (Luxembourg) or the McCord Museum (Canada). Currently, NAM only offers online exhibition, which allow audiences to read exhibit descriptions accompanied by some pictures. The online exhibition is adequate in providing information however it fails to deliver an experience to the online audiences. Therefore, it is recommended for NAM to have an online virtual tour which allows audiences to have a unique experience. 2.4.1 Online Virtual Tour NAM could set up an online virtual tour which allows audiences to have a more realistic experience. The tour would start at the main gate of NAM and it will lead audiences to the ground floor where the temporary exhibition area is. During the tour, audiences will have 360 degree panoramic view of the exhibition area, an overview of the exhibition area will also be provided. Besides that, audiences also can zoom in
  11. 11. Name: Tiezheng Yuan Student Number: 110562836 10 at specific exhibits to read up in detail. The aim of the online virtual tour is to provide an experience that is as close as visiting NAM physically. How it help to achieve objective 1: Audiences can view the exhibits in a much better way compared to traditional photography. The virtual tour also makes it easy and interesting for audiences to understand the exhibits. Besides that, the virtual tour is open 24/7 and there is no need for audiences to worry about closing time. In addition, potential visitors can form a better and informed decision to visit NAM after going through virtual tour. Lastly, people can visit the virtual tour repeatedly just to experience the virtual immersive effect and enjoy the views. There is also a higher chance that visitors of NAM virtual tour will refer the virtual experience to family and friends. 2.5 Physical Evidence Description:  A service is intangible and visitors are unable to experience the service before the service is delivered (Chartered Institute of Marketing, 2014). Therefore, it creates uncertainty to individuals before purchase.  Physical evidence is used as a cue due to the intangibility of services. These cues are used to evaluate the service before its purchase, and to assess satisfaction with the service during and after purchasing the service (Baines et al., 2006). Rationale for Recommendation: Perceptions of the physical surroundings (or physical evidence) are important for services due to the effect the physical evidence has on customers and on the perceptions of service quality (Bitner, 1992). According to Baines et al. (2006), physical evidence refers to tangible cues associated with service quality. Physical evidence includes all aspects of the service provider’s physical facilities, as well as other forms of communication with the customer, including facility exterior (e.g. parking), facility interior (e.g. decoration) and other tangibles (websites). Physical evidence impacts on perceptions of service quality and satisfaction, as well as the intention to re-patronise and the willingness to recommend. Many cultural organisations have used technology as a form of physical evidence to reduce uncertainty of audiences before visits (Mick and Fournier, 1998). This is especially true where many museums use large screen televisions near reception to showcase some of their exhibits. Currently, there is a lack of tangible cues for visitors visiting NAM. Many visitors have limited knowledge of what NAM exactly exhibits prior to visit. As a result, there may be disappointments due to misinterpretation. For example, visitors might think that NAM also exhibit items of navy and air force. In reality, NAM’s exhibition mainly focuses on land force. Therefore, the following recommendation would help to reduce uncertainty for visitors visiting NAM through the use of technology. 2.5.1 A Technological Offer NAM could fit 5 computer workstations near the entrance offering visitors an introduction to the tour of the museum and a further chance to get to know its collections. Besides that, NAM could also install a multivision system on a large panoramic screen made up of smaller screens where specially created video installations are shown.
  12. 12. Name: Tiezheng Yuan Student Number: 110562836 11 How it help to achieve objective 1: The computer work stations will inform potential visitors on the collections of NAM. Thus, it reduces the probability of disappointment and misinterpretation. Besides that, the large panoramic screen adds on to the aesthetic beauty of the NAM building. All these enable visitors to have a good experience at NAM. With higher satisfaction, the likelihood of re-patronise and willingness to recommend increases. Therefore, it helps to increase the number of audiences of NAM. 2.6 People Description:  Anyone who has contact with customers will make an impression, and that can have a profound effect on customer satisfaction positively or negatively (Chartered Institute of Marketing, 2014)  Having superior personnel brings competitive advantage to organisations since contact people are a key component to service quality (Abernethy and Butler, 1993). Therefore, employees must be appropriately trained, well-motivated and have positive attitude. Rationale for Recommendation: Services are frequently produced and consumed simultaneously and that makes service providers and contact people especially important (Abernethy and Butler, 1993). Besides that, the high frequency of interaction between visitors and employees makes contact people very important as they play a vital role in shaping audiences' perceptions of service quality (Crain, 2009). Employee experience and competence are key indicators of service quality for many visitors (Abernethy and Butler, 1993). Visitors will share their experiences (positive or negative) with their families and friends. According to Sweeney et al. (2012) which conducted a study on word of mouth marketing discovered that positive experiences tend to multiply slower compared to negative experiences. It is therefore important for employees to be well trained, in order for them to deliver good services so visitors can have good experiences. Generally there are two types of training that employees can undertake. Firstly, On- the-job training, this takes place while employees are carrying out an activity in their place of work. It includes activities such as staff meeting, observation and coaching. Secondly, Off-the-job training, this take place away from work and it involves instructor led training. The benefits of training include improving skills and competencies of employees. Training also helps to improve efficiency and can motivate employees to do well. In the case NAM, training can help employees better communicate with audiences and provide better services. Therefore, some training programs are recommended to enhance the service offer of NAM. 2.6.1 On-the-job Training NAM could provide coaching for its employees. During coaching, a supervisor guides the employee through tasks and processes so that the employee knows how to perform the task and to what standard. Typically, the supervisor observes the trainees while they perform their duties. After observation, the observer provides the
  13. 13. Name: Tiezheng Yuan Student Number: 110562836 12 trainees with feedback on their strengths and any development needs. Based on the feedback provided, trainees can focus on improving on areas of weakness. Supervisors also needs to well-trained and professional so as to provide the best possible guidance to trainees. How it help to achieve objective 1: Coaching allows trainees to learn firsthand as they practice serving real visitors, and observers are able to correct any mistakes on the spot. Besides that, coaching also gives trainees confidence in performing their task. With adequate training and guidance, employees are able to provide excellent services to visitors. Consequently, visitors have good perceptions of NAM’s service quality thus satisfaction level increases, which encourages a spread of positive word of mouth. 2.6.2 Off-the-job Training NAM could also provide Off-the-job training to employees on areas of communication and body language. Training can specifically target effective communication such as choice of words and tones. Positive body language can also be another area of emphasis. Besides that, based on NAM annual report (2013), there are a sizable number of international visitors visiting NAM each year. Therefore, it is beneficial for NAM employees to go through some cultural awareness training to better serve the increasing number of visitors from Middle East, Brazil, China and Russia. How it help to achieve objective 1: According to Cervone (2014), effective communication is one important element to service excellence. The choice of word and tone used by employees can directly affect both understandability and perception on service quality. Besides that, Cervone (2014) further elaborated that body language is also a powerful tool in communications. According to scientific research, people communicate through both verbal and body language. Therefore, by providing training on these two aspects, it will greatly enhance the communication skills of employees so that they can deliver high quality services to visitors. Consequently, it will encourage repeat visits and recommendations. Similarly, having more cultural knowledge of international visitors allows employees to provide better services. 2.7 Process Description: Process refers to the process of delivering a service that is crucial to customer satisfaction (Chartered Institute of Marketing, 2014). It refers to a series of activities that allow the service to be delivered smoothly and effectively. Rationale for Recommendation: Mencarelli et al. (2010) mentioned that the process of museum experience should stimulate the senses of its audiences. Sociologist researchers discovered that, individuals feel things more vividly than they can ‘think’ them. Based on this discovery, some cultural organisations reportedly turned to new consumer practices engaging devices that can procure sensory pleasure (Mencarelli et al., 2010). These devices may influence the evaluation of the consumption experience. Museums are
  14. 14. Name: Tiezheng Yuan Student Number: 110562836 13 also integrating more multisensory experiences to provide an immersive experience for visitors. Besides stimulating the senses of audiences during the process, museums also needs to take time factor into consideration when delivering the service process. Many modern individuals are time deprived as they have to do a large quantity of things in limited amount of time. As a result, individuals are looking for speed in their acts of consumption, so they feel they are making good use of their time. It is therefore necessary for museums to make adjustments to their service process to meet the needs of modern individuals. The following recommendations will enhance the sensory experience of NAM’s audiences, also taking time factor into consideration. 2.7.1 A sensory Approach NAM could offer a total sensory experience to its audiences. Firstly, the design (includes lighting) of the exhibition site could enact the battlefields of World War 2 and this will engage the sight of the audiences. Secondly, special sound effects such as gun shots, bomb explosions and battle cries could be included in the ambient sound. Next, visitors are allowed to touch some of the reproduced exhibits such as rifles and helmets. Besides that, special perfumes could be used to produce the smell of gunpowder. Lastly, visitors are also allowed to taste the combat rations use by British soldiers in the World Wars. How it help to achieve objective 1: The whole process is designed to engage the senses of the audiences and therefore provide a unique experience. Having a good and memorable experience will increase satisfaction. Consequently, this will encourage repeat visits and recommendation. Therefore, increase the number of audiences. 2.7.2 Time in the NAM offer NAM museum could allow visitors to choose certain themes corresponding to various pathways (directions indicated) in the museum (with the length of visits indicated). For example, visitors who are time deprived can take the fast-track around the museum (30-45 minutes). Visitors who have moderate amount of time could take the medium track (2 hours). Lastly, visitors who have ample time can take the guided tour around the museum (4 hours). How it help to achieve objective 1: NAM could cater to different needs of the audiences based on the amount of time visitors have. Visitors who are time deprived could take the fast track but still able to view the main collections of NAM. Such a way all visitors are directed and would not miss the interesting collections of NAM. Besides that, this will make the viewing process more organised as visitors are viewing the collections in a systematic manner. The likelihood of congestion problem is also reduced. The smooth service process contributes to audience satisfaction. Thus, this will increase the likelihood of repeat visits and recommendations to families and friends. Therefore, increasing the number of audiences visiting NAM.
  15. 15. Name: Tiezheng Yuan Student Number: 110562836 14 3. Budgets, Scheduling and Implementation This section will report on the budgets needed, the scheduling program and implementation. NAM is currently closed for upgrading work, so all activities are planned for January 2016 to December 2016. 3.1 Budget, Scheduling and Implementation Program Actions Implementation Budget per week/ month Schedule Total Budget (per year) Sources By who Method Measurement Product The Unique Experience Service employee, volunteer Employee will distribute quiz sheet and pen at the entrance. Any questions from visitors will be answered. Another employee on 4th floor will collect quiz sheet and pen, tally total score. Number of visitors who took part in the quiz and visitor feedback. N/A Every day for 12 months January 2016 – December 2016 £88,229 N/A Quiz Sheet Service employee Distributed by hand Number distributed £1333.3 On going £16,000 https://printing.ncl. ac.uk/printcredits/ Pen Service Employee Distributed by hand Number distributed £4958.3 On going £59,500 http://www.staples. com/Pens/cat_CL1 10001?sby=1 Employee/Volunteer Service employee 4 employee station at entrance, 4 station at 4th floor £6.31(wages)× 8× 7 (hours) £10600 On going £12,729 https://www.gov.uk /national-minimum- w age-rates Amazing Race Service Employee, Volunteer, Marketing It will be held within NAM building. One employee will explain the rules to all participants. 2 employees will be stationed at each station to oversee the missions Number of participants signed up N/A 15th July 2016 £1107.1 N/A Medals Service employee Purchase from museum shop 6 medals given N/A 15th July 2016 £23.70 http://www.trophies 2u.co.uk/products/ Equipment Service employee Simple prop used in missions N/A N/A 15th July 2016 £200 N/A Employee/Volunteer Service employee 2 employees at each station. Total 10 missions. 20 employees £6.31(wages)× 20× 7 (hours) N/A 15th July 2016 £883.4 https://www.gov.uk /national-minimum- w age-rates Story Telling Service Employee, Volunteer, Volunteers will be telling stories and perform performances. Service employees will conduct guided tour Number of students and schools attended N/A Every week Friday 2-5pm £3634.56 N/A Employee/Volunteer Service employee 4 service employees needed to manage 200 students. £6.31(wages)× 4× 3 (hours) £75.72 Every week Friday 2-5pm £3634.56 https://www.gov.uk /national-w ages
  16. 16. Name: Tiezheng Yuan Student Number: 110562836 15 Price Exclusive Patron Circle Business manager Business manager will contact and promote to interested individuals Number of patrons £532 Every day for 12 months £6384 N/A Segmentation Strategy Café Museum shop Café and museum will give 20% discount to student during exam Number of purchase Usage of Templer study N/A January 2016 May 2016 £425 N/A Celebrity and Guest ticket Marketing employees Marketing employees will set the ticket prices base on demand Number of tickets sold £525 On last Saturday of ev ery month 2pm £6,300 http://www.ticket master.co.uk Promotion Facebook Competition IT & marketing Department IT will manage the technical aspect, marketing manage the content Number of new followers each month Free 1st of each month for 12 months £720 N/A Prizes for 2 winners Marketing Purchase from museum shop 2 winners £60 1st of each month £720 http://shop.national- army -museum.ac.uk Place Online Virtue Tour IT & external photographer Professional photographer will take the panoramic pictures, IT will manage the technical aspect online Number of viewers per month £60 Every day for 12 months £60 http://www.virtual3 60.net/virtual-tours Physical Technological Offer IT& marketing Department Marketers will decide on the content to be displayed on computers and panoramic screens Number of visitors who use the computer work stations N/A Every day for 12 months £38,230 http://www.amazon .com/Original-LG- People On-the-job Training Internal Supervisors Supervisors will provide guidance and feedback to trainees Supervisor assessment and customer feedback N/A Whenever there is a training need N/A N/A Off-the-job Training External Trainers Employees will attend communication and body language courses conducted by external trainers Trainer assessment and customer feedback £3,750 Every 6 months £7,500 http://courses.indepe ndent.co.uk/training/c ommunication-skills- training-course-82498 Process A Sensory Approach Marketing, operations & external Historian Marketers will design the exhibition site based on external historian inputs. Operations will build it. Number of visitors and customer feedback N/A Every day for 12 months £81,482 N/A Sensory Equipment operations Operations employees will purchase the sensory equipment Lighting,design,sound system, props and sample rations N/A Every day for 12 months £81,482 http://www.terralec.co .uk/audio/audio_sy ste ms/11418_12c.html Time in the NAM Offer Service, and Marketing employees Service employees will put up signs and directions.They will answer any queries from visitors. Number of visitors who took each pathway per month N/A Every day for 12 months £22,500 http://www.prosignbra nding.com/how- much-do-building- signs-cost/ Total Cost £256571.7
  17. 17. Name: Tiezheng Yuan Student Number: 110562836 16 List of References Abernethy, A.M. and Butler, D.D. (1993) 'Promoting customer contact people', Journal of Service Marketing, 7(1), pp. 4-12. American Marketing Association (2014) Define product. Available at: https://www.ama.org/resources/Pages/Dictionary.aspx?dLetter=P (Accessed: April 13 2014). Andreasen, A.R. and Kotler, P.R. (2008) Strategic Marketing for Non-Profit Organizations. 7th edn. America: Pearson Education. Anderson, R. (1998) 'Is charging economic?', Journal of Cultural Economics, 22(3), pp. 179- 187. Arnold, D.R., Hoffman, K.D. and McCormick, J. (1989) 'Service pricing: A differentiation premium approach ', Management Decision, 3(3), pp. 25-33. Avlonitis, G.J. and Indounas, K.A. (2006) 'Pricing practices of service organizations', Journal of Services Marketing, 20(5), pp. 346-356. Baines, P., Fill, C. and Page, K. (2011) Marketing. 2nd edn. Oxford: Oxford University Press. BBC (2013) Warning over Arts Council funding cull. Available at: http://www.bbc.co.uk/news/entertainment-arts-22868823 (Accessed: April 23 2014). Beaven, M.H. and Scotti, D.J. (1990) 'Service-oriented thinking and its implications for the marketing mix', The Journal of Service Marketing, 8(1), pp. 5-19. Bitner, M.J. (1992) 'Servicescapes: the impact of physical surroundings on customers and employees', Journal of Marketing, 56(2), pp. 57-72. Cervone, F. (2014) 'Effective communication for project success', Journal of Marketing, 30(2), pp. 1-4. Chartered Institute of Marketing (2014) Definitions. Available at: http://www.cim.co.uk/Resources/JargonBuster.aspx (Accessed: April 23 2014). Crain, D.W. (2009) 'Only the right people are strategic assets of the firm', Strategy and Leadership, 37(6), pp. 33-38. Goulding, C. (2000) 'The museum environment and the visitor experience', European Journal of Marketing, 34(3), pp. 261-278. Grönroos, C. (1994) 'From marketing mix to relationship marketing: Towards a paradigm shift in marketing', Management Decision, 32(2), pp. 4-20. Grunig, J.E., Grunig, L.A., Sriramesh, K., Huang, Y. and Lyra, A. (1995) 'Models of public relations in an international setting', Journal of Public Relations Research, 7(3), pp. 163-186. Guardian (2014) National Army Museum unveils expansion plan. Available at: http://www.theguardian.com/culture/2014/apr/29/national-army-museum-expansion-plan (Accessed: April 24 2014). Gurel, E. and Kavak, B. (2010) 'A conceptual model for public relations in museums', Journal of Marketing, 44(2), pp. 42-66. Imperial War Museum. (2014) About us. Available at: http://www.iwm.org.uk/ (Accessed: April 5 2014).
  18. 18. Name: Tiezheng Yuan Student Number: 110562836 17 Kotler, N. (2004) 'New ways of experiencing culture: the role of museums and marketing implications', Museum Management and Curatorship, 19(4), pp. 417-428. Kreisberg, L. (1998) 'Communication with a purpose', Museum Public Relations, 1(1), pp. 29-31. Lagrosen, S.O. and Grunden, K. (2014) 'Social media marketing in the wellness industry', The TQM Journal, 26(3), pp. 253-260. Lockshin, L.S. and Rhodus, W.T. (1993) 'The effect of price and oak flavor on perceived wine quality', Marketing Intelligence & Planning, 1(1), pp. 13-25. McLean, F. (1995) 'A marketing revolution in museums?', Journal of Marketing Management, 11(1), pp. 601-616. Mencarelli, R.M., Marteaux, S.V. and Pulh, M. (2010) 'Museums, consumers, and on-site experiences', Marketing Intelligence & Planning, 28(3), pp. 330-348. Mintel (2013) UK consumer lifestyle. United Kingdom: Mintel. Mick, D.G. and Fournier, S. (1998) 'Paradoxes of technology: consumer cognizance, emotions and coping strategies', Journal of Consumer Research, 25(1), pp. 123-143. Nagle, T.T. and Holden, R. (1987) The strategy and tactics of pricing: A guide to profitable decision making. New Jersey: Prentice Hall. National Army Museum. (2014) Vision. Available at: http://www.nam.ac.uk/about-us (Accessed: April 23 2014). Ofcom (2013) UK communications 2013. Available at: http://media.ofcom.org.uk/facts/ (Accessed: April 10 2014). Pitt, L.F., Berthon, P.R. and Morris, M.H. (1997) 'Entrepreneurial pricing: the Cinderella of marketing strategy', Management Decision, 35(5), pp. 344-350. Rentschler, R., Hede, A.-M. and White, T.R. (2007) 'Museum pricing: challenges to theory development and practice', International Journal of Nonprofit and Voluntary Sector Marketing, 12(1), pp. 163-173. Shostack, G. (1985) Planning the service encounter. Lexington, MA: Lexington Books. Sweeney, J.C., Soutar, G.N. and Mazzarol, T. (2012) 'Word of mouth: measuring the power of individual messages', Journal of Marketing, 46(2), pp. 237-257. Thompson, K.N. and Coe, B.J. (1997) 'Gaining sustainable competitive advantage through strategic pricing: selecting a perceived value price', Pricing Strategy and Practice, 5(2), pp. 70-79. Wiggins, J. (2003) 'Motivation, ability, and opportunity to participate: A reconceptualization of the Rand model of audience development', 7th International Conference on Arts and Cultural Management. Milan, Italy, 29June-2 July 2003.
  19. 19. Name: Tiezheng Yuan Student Number: 110562836 18

×