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.