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.