1. Introduction.

1.1 Purpose
This paper aims to report a study about marketing mix strategies of Melbourne Museum, a
famous tourist attraction destination of Melbourne. These changes to the existing marketing
mix strategies will enable the Melbourne Museum to adapt its image, values, and its products
in line with changing customer needs and wants.
1.2 Scope
The report mainly studies the main target segmentations, target marketing and positioning of
Melbourne Museum. This report also covers 4Ps elements in marketing mix including
product, price, place, and promotion.
1.3 Methodology
In writing this report, information is collected from two main resources which are academic
journals and Melbourne Museum website.
1.4 Limitations
While writing this report, there are many problems such as lack of information and
knowledge of the organization as well as concepts related to the report because some
academic journals are not freely available. Besides, there is certain information which is not
really accurate at the moment of writing because they have been studied for few years.
1.5 Assumption
There are assumptions that the readers of this report have knowledge of marketing as well as
the general information about Melbourne Museum. It is also assumed that all information and
data in this report are accurate.
1.6 Background
Melbourne Museum is one of the most famous tourist attraction destinations of Melbourne
which introduces many exhibitions about history, culture, animals, and environment. Because
of different target segmentations, Melbourne Museum offers vary exhibitions and uses
differentiated marketing strategy. Melbourne Museums products are services which are more
than 18 exhibitions and shows, so they can only use direct marketing channel by selling their
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products directly to consumers. And they are using differential pricing strategy which means
charging different consumers different prices. They also use many promotion tools in order to
promote their image, value as well as introduce their products such as advertising, sales
promotion, public relations, personal selling and direct and online marketing. Melbourne
museum has been creating a position in customer minds as a museum about history, culture,
animals and environment which is distinguishable with other museums and its image is being
highly recognized.
2.

Company overview.

Melbourne Museum is one of famous tourist attraction destinations of Melbourne which

explores life in Victoria containing over 16 million items relating to Australian society from
natural environment, science and technology to culture and history (Melbourne Museum
website, 2009). Melbourne Museum is located in Carlton Garden including eight galleries
with one only for children. This museum offers three main product categories which are
exhibitions, education, and discovery centre. In exhibitions category, Melbourne Museum has
more than ten permanent exhibitions, tours, and activities such as wild life, dinosaur walk, the
human body, forest secrets; Melbourne Museum highlights tour, etc. In education category,
Melbourne Museum provides an interesting learning environment by offering many
activities, programs and exhibitions for students and teachers at all levels from preschool to
high education in four topics: arts and humanities, physical sciences, and life sciences. The
last category is discovery centre which includes topical websites and info-sheets based on
Museum Victorias collections and research with many topics such as animals and plants,
history and technology, rocks and fossils, etc. One specific product of Melbourne Museum is
Dinosaur Walk exhibition which is all about the evolution, history and lives of 17 prehistoric
animals.
Even thought Melbourne Museum is an attractive destination for tourist, it has to compete
with many competitors including both direct and indirect competitors. Some of its direct
competitors are Immigration Museum, Scienceworks Museum, and Melbourne Aquarium
which also offer knowledge of history and natural environment. And its indirect competitors
include zoos or gardens such as Melbourne Zoo, Royal Botanic Garden, or other tourist
attraction like Philip Island, Great Ocean Road, Queen Victoria Market, etc.

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3. Segmentation, targeting and positioning.

3.1. Market segmentation.
According to Hunt and Arnett (2004), market segmentation often refers to the use of
particular statistical techniques for identifying groups of potential customers who have
different needs, wants, taste, and preferences. Melbourne Museum targets many segments
such as students, retired tourists, families, etc. And its two main segments are primary
students and tourists.
For primary students, demographic variables deal with age which is between the age of seven
and ten, and their education is still in basic level. In psychographic base, primary students
have a lot of spare time, and they are really excited to study and explore new things. In
behavioural base, primary students are not price sensitive because they can explore the
museum free of charge, and their occasions are only with class or with their parents.
For retired tourists, psychographic variable deals with age, income and lifestyle. Retired
people are usually over the age of 60, and their income is fixed and not really high. Retired
people have a lot of spare time, and most of their free time is used for travelling. In
behavioural base, retired tourists are not price sensitive, and they visit the museum just one
time within their tours. They also expect something different from what they have already
seen, which mean benefit expectation is pretty high.
3.2. Target marketing.
Target marketing is defined by Rossi (1998) as a detailed examination of organization to
target its segments and introduce differentiated products or messages to satisfy those
segments needs and wants.
Melbourne Museum uses differentiated targeting strategy by introducing multiple products to
satisfy its different segments needs and wants. For example, Melbourne Museum has one
gallery only for children, or they create many programs for students and teachers, etc.
Melbourne Museum introduces this strategy to attract more people to come to the museum
not only for more profit but also for educational purposes.
3.3. Positioning.
Dibb (1997) has defined positioning as a process of designing the image and value so that the
target customers within the segments understand what the company or brand stands for in
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relation to its competitors. Melbourne Museum uses the slogan: Come and See the Real
Thing to create a position in customer mind as a museum about nature and history of
animals and plants, arts and human, which is different from its competitors. For instance,
Immigration Museum is only about the history of immigration, or Melbourne Aquarium is
about marine lives, etc. Hence, the position of Melbourne Museum is pretty clear and high in
customer minds.
4. Product
According to Gombeski (1998), a product can be anything such as good, service, idea, or
place, etc. Melbourne Museums products are services which are exhibitions and shows about
nature, human, history and animals. One specific product of Melbourne Museum is Dinosaur
Walk exhibition.
4.1. Three levels of product.
4.1.1. Core product.
The core benefits of Dinosaur Walk exhibition is the knowledge of the evolution of 17 types
of not only dinosaur but also prehistoric animals (Melbourne Museum website, 2009). People
will have information about how those animals lived, what they ate, why they do not exist
anymore, etc. People can also see the skeleton of these 17 prehistoric animals.
4.1.2. Expected product.
The expected values of Dinosaur Walk are information of these animals. Those kinds of
information are given in many forms such as info sheets, slide show, and labels under each
skeleton. There are also many videos about those animals which show their lives and some
interesting imagination of dinosaurs, as well as education programs for students from preschool students to grade tenth. The branding of Melbourne Museum is also the branding of
Dinosaur Walk, which creates a concept in customer mind about history, nature, and animals.
With the brand name Melbourne Museum, it can make consumers think about an official
museum of Melbourne or even of Victoria State, and it must be a good museum. Dinosaur
Walk is arranged based on their evolution, in time order, from type to type. This product is
supported by many videos which are made to introduce how to draw these skeletons and
describe in detail about them. For example, there is one video introducing the link between
dinosaurs and birds.
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4.1.3. Augment product.

Melbourne Museum offers the augmented benefit of Dinosaur Walk which is called
prehistoric fun which includes colouring fact sheets of dinosaurs in the exhibition that
children can take and colour them the way they want, and downloading a selection of
prehistoric animals themes for desktop, etc. Furthermore, there is a souvenir shop that people
can buy books, gifts, toys, DVDs, etc about those prehistoric animals.
4.2. Product life cycle.
According to Gorchels (1998), product lifecycle is a sequence of stages from introduction,
growth, maturity to decline. And Dinosaur Walk is in maturity stage which is the highest
stage of product lifecycle because this exhibition has been introduced for a long time. This
product is unique in the market; it does not have direct competitors. However, it has to
compete with many indirect competitors such as Luna Park, Melbourne Zoo, other museums
or other kinds of entertainment. Therefore, Melbourne Museum has to be innovative, and
creative to make their products more attractive to not only new customers, but also to existing
customers.
5. Pricing
Radder (1996) defined price as the amount of money that a corporation charges for their
products.
According to Brooksbank (1994), a pricing strategy is an approach to design the price for
product not only to get benefit but also to compete with competitors
5.1. Factors that influence price.
5.1.1. Internal factors
For internal factors, they have to charge the price that enables them to cover the costs such as
wages, operation costs, etc. And they have to decide the price that is consistent with the
museums goals and mission as an educational as well as entertaining destination.
Furthermore, the price should be suitable with the quality of the exhibitions and the brand of
Melbourne.

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5.1.2. External factors

Melbourne Museum has to compete with other direct and indirect competitors such as
Melbourne Aquarium, Luna Park, Melbourne Royal Garden, etc. Therefore, they have to
make sure their price is acceptable relative to its competitors and everybody can afford for the
ticket.
5.2 Pricing Strategy.
Melbourne Museum has been using differential pricing strategy which means they charge
different prices to different consumers for the same product. For example, one adult ticket at
Melbourne Museum is 8 dollars for the all exhibitions, but it is free of charge for children
under the age of 16 and students. There is only one exhibition for people who pay for ticket
and for students who enter free of charge.
6. Place
According to William and Gombeski (1998), distribution channels are sets of people and
institutions that have functions of moving products from a producer to consumers. There are
two types: direct and indirect marketing channels. Melbourne Museum is using direct
marketing channel which means they do not use any intermediary but sell their products
directly to consumers, and they do not have any retailers to distribute their products.
Consumers can only purchase the ticket for their visiting at the entry of the museum or book
ticket online at the museums website which is exclusive distribution. Furthermore,
Melbourne Museum co-operates with other museums to introduce some temporary
exhibitions and events which is horizontal integration.
Melbourne Museum has been creating a position in customer minds to be a museum about
culture, history and natural environment by using the slogan: Come and See the Real Thing
(Melbourne Museum website). And when they want to re-position their offer which means
changing identifies of products in customer minds of the target segment (Kotter, 1995), they
have to change the image of the whole museum. For example, they might change the serious
atmosphere into funny and active atmosphere by adding music to attract more young people,
children, and tourist. With this re-positioning, Melbourne Museum is still able to keep their
distribution strategy because their products are services which are exhibitions, educational
programs, and discovery centre. With these products, they cannot use any retailer or
intermediary.
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7. Promotion
Rowley (1998) stated that promotion is used by organisations to communicate with target
customers with respect to their product offerings. Melbourne Museum is using advertising,
public relations, and online marketing as their promotion strategy by using advertisements on
TV, newspaper, the Internet, etc.
7.1. Advertising.
According to Rowley (1998), advertising is any paid form of non-personal presentation and
promotion of ideas, goods or services by any identified sponsor. The pages of professional
newsletters and magazines, TV, the internet are common avenues for advertising information
products. Melbourne Museum uses institutional advertising which means they advertise the
whole organization image via its website and Victoria museum website also with the slogan
Come and See the Real Thing (Melbourne Museum website, 2009). Furthermore, they also
use product advertising which means introducing the features and characteristics of some
special products. For example, they advertises Wild exhibition with the introduction:
Amazing animals in a changing world on TV such as Channel 9, newspapers such as The
Age, Herald Sun, posters outside the museum, etc.
7.2 Sales promotions.
According to Rowley (1998), sales promotions are short-term incentives to encourage
consumers to purchase a product or a service. And sales promotion tools that Melbourne
Museum is using are posters, display TV screens, brochures. Outside and inside the museum,
there are many posters which introduce new exhibitions or some special events. And display
TV screens are used to introducing general information of the museum and exhibitions.
Furthermore, visitors can get information from brochures put around the museum
7.3 Public relations.
Public relations are programmes designed to promote or protect the organizations image
according to Rowley (1998). Melbourne Museum holds some events such as Star War lecture,
Wild: Amazing animals in a changing world colouring competition, etc, to maintain its image
and position in customer minds, as well as to encourage people to learn more about history,
culture, animals, and environment.
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7.4 Personal selling.

Rowley (1998) states that personal selling is the use of sales people to persuade consumers to
purchase products or services. Melbourne Museums sales people are customer service staff
and tour guides. Customer service staff includes receptionists, and sales assistants at souvenir
shop. Furthermore, if visitors do not know where to begin, they can ask for a tour guide who
will take them around the museum and introduce all the exhibitions in detail.
7.5 Direct and online marketing.
Melbourne Museum also uses direct and online marketing by using mail, telephone or other
non-personal contact tools to communicate or solicit a response from specific customers and
prospects (Duffy, 2004). They inform their members about the updates at the museum via
regular mail-outs of the museum magazines, calendar of events and through email updates.
8. Conclusion
Marketing mix strategies that Melbourne Museum is using help it create a position in
customer minds as a successful museum about history, culture, animals and environment.
This position is distinguishable to other museums such as Immigration Museum,
Scienceworks Museum, etc.

However, Melbourne Museum still has to be innovative,

creative to make visitors keep coming back and to attract more new visitors because there are
more and more tourist attractive destinations being established, which Melbourne Museum
has to compete with.
.

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Dinosaur Walk, 2009, [Online], Available at: www.museumvictoria.com.au, Date access:

7th December 2009

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