Ch. 8 - Segmenting and Targeting Markets

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. MAC Cosmetics have a potential market for the customers, offering affordable prices for all ages, sexes, genders, and socio-economic groups. Their target marketing is the market segment where their product is globally marketed to. The company targets its market, which is their strategic approach to creating a marketing mix for a specific targeted market segment and set of buyers. This leads to the success of the company. The beauty of MAC's target marketing is that it make stheir promotion, pricing, and distribution of their products and services easier and more cost-effective. target marketing provides a focus to all of MAC's marketing activities. MAC Cosmetics knows their target market on the basis of demographic information because it is widely available and it is often related to consumers buying and consumer behavior based on age, gender, income, and ethnic background.

Ch. 11 - Developing and Managing Products

Every season MAC Cosmetics introduces a new collection of products. These ideas come form many sources which include, customer, employees, distributors, competitors, vendors, research and development, and consultants. This coming February, 2013, hip-hop artist Nicki Minaj will be going solo as MAC's Viva Glam girl. She's got a new signature color to add to her repertoire in addition to the MAC AIDS fund she contributed to at the beginning of 2012 with Ricky Martin. Nicki is trading in that pink signature color for a shade of purple that's been popping up on runways this season. New products are important to sustain growth, increase revenues and profits, and replace obsolete items. This new product will sustain growth, increase revenues and profits, and replace obsolete items because Nicki Minaj is a well-known celebrity and an idol to many. Because of this fact, this new lipstick's sales will become equal to her last lipstick's sales. This is because most of her fans bought her last lipstick with MAC and will most likely buy this new one just because it has her name on it. During the developing process, MAC takes everything that includes sale outcomes into consideration.

Ch. 16 - Integrated Marketing Communications

MAC Cosmetics promotes their products in a very unique way and has always been on the cutting edge with their way of promoting their brand image. They use all three types of promotion; they inform, they persuade, and they remind potential buyers through their word-of-mouth strategy. MAC is very aware of their target audience which allows them to know how to focus their promotions. MAC's target market recognizes them as significant and superior, and they have a total competitive advantage in the cosmetics market. However, outside of the United States, there is no media advertisement, so people in other countries often do not know about MAC's products and their advantages. Since this is an existing lack of promotional campaigns, MAC relies on their existing customers to spread the information about their products. They use celebrities and models as representatives of their makeup products. The company is very clever when it comes to knowing how to keep a positive image in public relations. MAC Cosmetics is known for their MAC AIDS fund campaign and their Back to MAC program, where they stand out for being a socially responsible company. They also have fashion parties and launches where they bring the ordinary world and the celebrity world together. This allows the company to benefit great deals for their publicity. The greatest highlight of MAC is their sales promotion which stimulates their immediate increases in demand. The employees at MAC are all well trained. Their sales representatives offer the best personalized customer service. Between MAC and its customers, personal selling is a well paid-for communication where the customer is ultimately satisfied with the product and its reasonable and affordable price. MAC Cosmetics believes in and uses interpersonal communication with their customers, which is direct and a face-to-face communication. The sales representatives in every MAC store are very attentive and direct, which is an advantage and a positive effective way of product selling.

Ch. 10 - Product Concepts

     MAC Cosmetics is a specialty product and the company's consumers are extremely satisfied with it because it fulfills their extensive search. MAC uses the word-of-mouth streategy and are status-conscious to maintain their product's exclusive image. Different cultures favor brand name for their quality product and research has shown that consumers do not mind paying a higher price to purchase MAC Cosmetics which being a product of Estee Lauder, is priced higher than the average drugstore cosmetics, but consumers are aware of the higher quality they are paying for.
     MAC's product line ranges from eyes, face, lips, skincare, fragrances, brushes, nails, kit essentials, and accessories. Over the last 15 years, 200 shades of lipsticks were created in seven different finishes,  180 eye shadows, 100 blushes, and haircare have all been created for the public. MAC is a global brand product that is well-recognized outside of its homebase of customers. Repeat sales take place in MAC stores because a customer knows what he/she wants and if their favorite product is in MAC, they will continue to purchase it whenever they run low on the product.

Ch. 18 - Sales Promotion and Personal Selling

In addition to using advertising, public relations, and personal selling, marketing managers can use sales promotion to increase the effectiveness of their promotional efforts. Sales promotion is marketing communication activities, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. For sales promotion, MAC does short-term use of incentives such as discounts, displays, exchange offers, exhibitions, fashion shows, movies, and television. The company does this to attract the potential customers and to achieve more sales value. MAC also promotes recycling. They do this through their "Back to MAC" program, where if you return six MAC primary packaging containers to either online or at a MAC counter, you get a free MAC lipstick of your choice. This is the company's way of thanking consumers for keeping our planet green.

Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. The most important advantage is that personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer. MAC performs the task of selling through individual or representative by face to face, and oral communication with potential buyers of a product with the intention of making a sale. MAC focuses initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close a sale".

Ch. 17 - Advertising and Public Relations

When we talk about advertising, we talk about the promotion of a product and a consumer's relations with that company. As stated in the book, advertising is impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Institutional advertising and product advertising are two major types of advertising.

MAC Cosmetics would be considered to be more of product advertisers. than of institutional advertisers. Product advertising promotes the benefits of a specific good or service. MAC heavily promotes their new products online and in emails. Every other day I get an email from MAC, introducing me to a new product they're selling. They also include free shipping every week. In the email they provide a code and an expiration date, so you can purchase anything online before that date and with that code, get free shipping. I think this an excellent way to advertise and promote their products. It's also very convenient because for example, seeing a new product in a magazine would probably catch your eye but you probably wouldn't buy it because the process would take too long. Having an email right at your hands aside with an offer code for free shipping will encourage you to buy that product or maybe even another product just because the shipping is free. As of right now, there is free shipping until December 21st, no offer code necessary.

Ch. 15 - Retailing

According to the chapter, retailing is all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use. The millions of goods and services provided by retailers mirror the needs and styles of U.S. society.

Yesterday, i walked into a MAC store. There are greeting customers ready to help any customer that enters the store. I am very satisfied with their personalized customer service. Customer service is a very important factor in MAC. Employees make 100% that a customer has exactly what he or she needs and wants. Me personally, I went in there to look around. As I entered, one worker approached me and greeted me and asked me if I was looking for anything in particular. At first I wasn't but somehow she allowed me to change my mind and purchase something. I asked for a light pink lipstick and she pulled out a lipstick called Saint German. She asked me if I would like for her to try it on me first, no cost, to see how it looks on me before I purchase it, and I allowed her to. She asked me where am I wearing it to and she told me how much to use depending on location. When I'm going to school, use a one line and smear it onto both lips, when going to work do the same but just dab a little more this time, and when you're going out, use a lot, show the brightness! You can go in just to take a look, but because of this kind of customer-friendly service, I bet most people decide to purchase one or two of their products.

I would say that MAC uses direct marketing as well as online retailing. After you purchase a product they tell you to go onto their website and fill out a survey. We all know once you go to a website, your eyes wonder and you begin to search for more and more products that you probably didn't see in the store, or that you don't even need, you're just searching because you can. They also ask for your email address so they can save into their system but the reality is so your email will be filled with MAC cosmetics emails about new products you should get. I know from experience.

Ch. 6 - Consumer Decision Making

The consumer decision making process is the process we go through when we are deciding on purchasing a product. The study of consumer behavior also includes factors that influence purchase decisions and product use. Understanding how consumers make purchase decisions can help marketing managers in several ways. These ways include making recognition, doing research, evaluating alternatives, purchasing, and post-purchase behavior. When purchasing MAC products, a consumer's decision affects them, their culture, and society. Consumers need to make a recognition of the brand MAC Cosmetics first. After that they need to do research for information on MAC Cosmetics or the product they are planning to purchase. Doing research on a product before you purchase it most likely results in consumer satisfaction, because you know what you like and what you want.  After getting information and constructing an evoked set of alternative products, the consumer is ready to make a decision. The name MAC itself promotes to the consumers evaluation of the product. Post-purchase of MAC Cosmetics has always been the right decision they are making, on the money they are spending for that product. This results in customer loyalty. For example: a dual compact which includes both foundation and powder, makes the skin look and feel smooth and flawless as compared to a lower price product of a lower quality, Consumers trust recommendations from their friends or celebrities they admire or idolize.

Ch. 5 - Developing a Global Vision

Global marketing is marketing that targets markets throughout the world, and this has become imperative for business. United States managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home. 

MAC Cosmetics is a multinational corporation and is the number one make-up artist brand in the world. It is sold in over 70 countries and territories. MAC, a division of $6.3 billion cosmetics giant Estee Lauder, got credited in the company's last annual report for being a significant reason for the parent's 13% net makeup sales increase ($274.8 million). Plumped-up sales from MAC's Small Eye Shadow, Studio Fix, Lustreglass, and Pro Longwear Lipcolour products alone contributed $70 million in revenue. MAC cosmetics sells extremely well globally in Doha, Qatar and the United Arab Emirates. One of their target markets is the Airline Industry and there are consumers who are able to use the best quality cosmetic product at a value that they are ready to pay. To help satisfy customers and make them feel comfortable with the company, MAC provides certain services to them in all MAC Cosmetics store locations. These services include: false lash application, full make-up application up to one hour, and make-up lessons up to 90 minutes. The artists are extremely collaborative with the customers. Unlike most retailers who bait their staff with commission, MAC pays its artists the highest hourly rate so they can focus their energy on bonding with each customer rather than shaking her down.

Ch. 4 - The Marketing Environment

Every company has a target market. There are many different types of target markets, including: tweens, teens, Generation Y, Generation X, and Baby Boomers. Tweens are children from ages 8 to 12, who spend over $200 billion annually. Teens are kids aged from 13 to 17, who spend approximately 72 hours per week tuned in electronically, and are interested in expensive clothing such as Armani. Gucci, and Coach. Generation X are people born between 1979 and 1994, who spend over $200 billion annually and over their lifetimes will likely spend about $10 trillion. Researchers have found General Y's to be inquisitive, opinionated, diverse, time managers, quick shoppers, want fulfillment, multi-taskers, and environmentally aware. Baby boomers are people born between 1946 and 1964, who, fewer than 20 percent say they expect to stop work altogether as they age, 67 percent said they'll continue to work to stay mentally active, and 57 percent say they'll continue work to stay physically active.

MAC's target market would be Generation Y. Generation Y, also known as echo-boomers, are about 60 million strong. Many Generation Yers have already started their careers and are making major purchasing decisions such as cars and homes, and are buying computers, cell phones, and expensive footwear and clothes. Generation Y is described as inquisitive - they want to know why things happen, how things work, and what they can do next. They are described as opinionated - they feel like their opinion is always needed. Generation Y is the most ethnically diverse generation the nation has ever seen, making them more accepting overall of people who are different from them.They are described as time managers - their entire lives have been scheduled, so it's expected for them to plan in advance. They are described as quick shoppers - they are more likely to use shopping lists and coupons. They are described as wanting fulfillment - they believe, in order for them to make a difference, they have to find something meaningful to them and work hard at it. They are described as multi-taskers - they have grown up in a digital, sociable, mobile-technology heavy world which causes them to be able to socialize with friends, access news, do research, and be entertained all at the same time, without a problem. Lastly, Generation Y is described as environmentally aware - they care about the environment and will seek out "green" products. Generation Y best fits MAC's target market because the majority of the customers and consumers of the company are young adults or adults. More specifically, from ages 18 to 33. Today, people these ages and between, are part-time employed college students and college graduates who care tremendously about high fashion, cars, houses, their looks especially; so there is a wide range of these people purchasing products from MAC.

Ch. 3 - Ethics and Social Responsibility

  MAC cosmetics has a great position on corporate and social responsibility. Due to it's many different surroundings, the public image of this business is supported. MAC and it's products are cruelty-free; they do not test their products on animals. They encourage recycling with the Back-to-MAC program. They even use packaging that you are able to recycle. With the Back-to-MAC program, customers are given a free lipstick of their choice with the return of six empty containers. Compared to other big companies, MAC offers good prices without any false promises such as age reducing creams. MAC is upfront in promoting it's support of the fight against AIDS, with it's popular lipstick 'Viva Glam'.

MAC chooses the Viva Glam celebrity faces based on their ties to the cause. As stated in the chapter, "corporate social responsibility is a business's concern for society's welfare. This is a concern demonstrated by managers who consider both the long-range best interests of the company and the company's relationship to the society within which it operates". MAC is highly concerned about it's long-range interests and it's relationship with society. The Viva Glam lipstick campaign is a major part of what people in society are interested in. First, the campaign is to raise awareness for people affected with HIV/AIDS. Every penny spent on any Viva Glam lipstick goes directly towards the AIDS fund; so people in the world that are interested in makeup as well as donating and helping society, contributes very well in this campaign. Second, MAC reaches out to certain celebrities to participate in the campaign. The last campaign's sales surpassed $250 million dollars, and the two celebrities that participated were Nicki Minaj and Ricky Martin. They used these two celebrities specifically because they have big voices. They both have a huge crowd that will involve themselves in anything that has to do with them. I am a huge Nicki Minaj fan myself and I know many others who contributed to this campaign just because she is involved. So MAC is very smart in how the business is managed and put together, and they obviously have a very great code of ethics.

Ch. 2 - Strategic Planning for Competitive Advantage

MAC has risen tremendously since it's founding in 1985. It has managed to rise as a global giant in the $160 Billion beauty industry, even with it's marketing strategy being mainly based on word-of-mouth. The international company has become compatible with glamour and stardom, from sponsoring international fashion weeks to hosting celebrity parties. Every aspect of what makes MAC Cosmetics is unique and goes against most common marketing methods. To our knowledge, product, price, promotion, and place are the four fundamental variables that either make or break a company. Currently, there are over one hundred MAC locations between the United States, Canada, and Europe; having the utmost success in London, England. There are over fifty locations across the United Kingdom, eight being MAC's flagship stores. MAC's future plans are to open locations in the Far East, China, and more in Europe. Now in a joint venture with the United States's largest privately owned cosmetics firm, Estee Lauder, MAC now distributes products in overseas markets. More typical market brands spend millions on advertising, while MAC does it all by inspiring it's stakeholders in non-intrusive and ingenious ways without spending fortunes on advertising.

MAC has undertaken many strategies, causing great success for the company. There was never a specific group that was aimed for. Frank Toskan planned to create every shade possible in order to offer a wide variety of shades for each individual. Over the last fifteen years, over 200 shades of lipstick in seven different finishes, 190 eye shadows, 100 blushes, and hair care have been created for the public. MAC's sales have grown rapidly over the years, and are continuing to do so, exceeding it's annual sales goals. In 2010, MAC surpassed it's sales plan by 121 million dollars. This year the MAC Viva Glam sales and donations to the MAC AIDS Fund surpassed two hundred, fifty million dollars. When MAC began the campaign in 1994, they could have never envisioned the scale of success it would achieve or how much one lipstick would change the world, the brand, and the company. Everyday, this company comes one step closer to it's ultimate goal of providing the utmost value for its customerS.

Ch. 1 - Overview of Marketing

Brief History

Make-Up Art Cosmetics, also known as MAC, was founded in 1984 in Toronto, Canada by Frank Toskan, a make-up artist, and Frank Angelo, a business partner. These two men founded MAC as a make-up for professionals. The first MAC retail location opened up in Toronto at Simpsons department store. In 1986, the Festival of Canadian Fashion was held and the company of MAC participated, wowing the crowd in result. Everyone was incredibly fascinated with it's far-out looks. In it's history, MAC had two spokesmodels: Ru Paul, and K.D. Ru Paul is a drag queen and a female impersonator, and K.D. Lang is a butch lesbian. MAC's style was always known for alternatively sexual identities. The brand does almost no advertising other than for it's Viva Glam lipstick. The sale of that collection goes to an AIDS foundation established by MAC in 1994. Part of the MAC mystique is that the line was originally formulated for fashion photoshoots. It caters to a wide range of skin tones and the language of how MAC deals with skin tones has become part of how people talk about make-up in general.

Mission Statement

"All Races, All Sexes, All Ages"

Conceived to embrace all consumers. MAC's mission is to be the world's leading makeup authority among both professional makeup artists and consumers. To meet customer's needs for superior quality services. To meet everyday needs for nutrition, hygiene, and personal care with products that make people look good and feel good. As an organization, it commits itself to high standards and creative development that all pains have gains. As I mentioned earlier, the MAC AIDS fund was launched in 1994, supporting men, women, and children affected by HIV/AIDS globally. Every cent spent on products apart of this campaign goes to these people around the world affected by the disease.

What is Marketing?

Before taking the first class, my definition of marketing was advertisement. What products they put in store windows, what commercials they make for their companies, what ads they put on walls and buses, etc. After the first class, I've learned more about marketing. It is more than just advertisement. It is a set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers. Reading chapter one also expanded my knowledge about marketing. Marketing entails processes that focus on delivering value and benefits to customers, not just selling goods, services, and/or ideas. Meaning, the business has to convince it's customer to buy it's products by building a relationship. The more comfortable you are as a customer, the more comfortable you are in buying products from that business. Rather than the company just tell you prices and how good the product works, a relationship can be built in order for the customer to want to buy. Also, businesses know what people like. For example, the Apple store. The majority of my generation right now have apple products. To name an actual product, the iPhone. I have an iPhone. Every single one of my friends have an iPhone. When I'm on the bus or train I see nothing but iPhones. In school, the majority of the students have iPhones. Apple will continue to create more advanced iPhones because they know people will buy. Young people for the most part, because the majority of people with iPhones are young adults. When you walk into an Apple store, music is playing, the room is a comfortable enough temperature to sit in, the workers are super friendly and will educate you on any product you ask about. It's a comfortable place with products you love and people who make you feel comfortable in buying them. It's all about the relationship.