Thursday, November 15, 2012

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.

Thursday, November 8, 2012

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".

Thursday, October 25, 2012

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.







Thursday, October 18, 2012

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.




Thursday, October 11, 2012

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.





Thursday, October 4, 2012

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.

Thursday, September 27, 2012

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.