Chapter 7. Business Marketing

Business marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. M.A.C. manufactures and retails their own products. They provide special training for employees to help customers.M.A.C. Takes great pride in their efficient customer service and quality product. M.A.C. also does business to business electronic commerce. B2B e-commerce is the use of the internet to facilitate the exchange of goods, services, and information bewtween organization.

M.A.C. has a seperate website for professionals, call mac pro. In this website you can find out about different events M.A.C. will participate and trends. On this website professional makeup artist can pay to become memebers to get personal service and get unique mac pro items.

MASTER CLASSES

Master Classes offer makeup professionals the opportunity to participate in events designed to bring together the latest in trends, products, makeup and techniques. Master Classes help you further your skills while giving you the opportunity to interact with the top Artists in the industry. The events consist of makeup demonstration and explanation of application technique-theory. Classes are designed to give the participant a basic understanding of the topic presented.

PRO ONLY EVENTS & NETWORKING OPPORTUNITIES

Meet M·A·C Pro Senior Artists. Informative and informal. View the application of art-inspired body art in a live installation, as well as enjoy cocktails and hors d'oeuvres with other makeup artists, hair stylists, agents, models and performers. This is the ultimate networking occasion for members to share their ideas about the industry with M·A·C Artists and other members of the artist community.

PASSWORD-PROTECTED WEBSITE, MACPRO.COM

The online destination for everything MAC PRO. Information on the latest in Trends, Products, Artist Tips, and MAC PRO Events. Find Q&A’s with top artists as well as articles from M·A·C Pro Senior Artists. Connect with other MAC Pro Members from around the world. Share ideas. Log on to join the M·A·C Pro Member Community, purchase online at MAC Cosmetics Online with your discount or to renew your membership online.

PRODUCT DISCOUNTS

As a M·A·C PRO Member, you may present your card at M·A·C stores in the U.S. and Canada, most International M·A·C stores and select partnered stores and receive a product discount. The product discount is also honoured on M·A·C Cosmetics Online upon signing in. Make-up artists receive a 40% discount. Aestheticians, Cosmetologists, Hairstylists, Fashion Stylists, Nail Technicians, Costume Designers, Models, On-Air Talent/Performers, and Photographers receive a 30% discount. International discounts may vary. Members must present photo ID at time of purchase. Your membership card is non-transferable.

COMPLIMENTARY SHIPPING FOR ORDERS OVER $150

When placing an order online or by phone, we make it easier with complimentary shipping. Purchase $150 (after discount) of M·A·C products and we will ship free of charge by courier (regular ground shipping) within the US and Canada. Sign in at maccosmetics.com or call M·A·C Customer Service at 800-387-6707, x8555 or 905-470-7877, x8555 to place your order. Some restrictions apply. Limit five complimentary shipments per year, per member.

DISCOUNTS FROM SELECT INDUSTRY PUBLICATIONS

Make-up Artist Magazine 360-882-3488 or info@makeupmag.com Make-Up Artist Magazine caters to the professional makeup artist and movie enthusiast by covering all aspects of the trade including film, television, theater and print. Stories are told from a unique angle and are accompanied by exclusive photos. Readers are taken behind-the-scenes on some of television's hottest shows and most anticipated films, as well as into the portfolios of premier editorial makeup artists. In addition to covering technique, we keep the industry updated with news and reviews on the latest makeup trends and accessories. Benefits: 10% discount on subscription, Member must present valid M·A·C PRO card at time of subscription. Le Book 212-334-5252 or info@lebook.com Created in 1981 by Veronique Kolasa, LE BOOK is the world's first and only trade publication for the fashion, beauty, design, entertainment, media, and advertising industries. With an unparalleled global reach, LE BOOK showcases images of today's and tomorrow's great photographers, art directors, and hair & makeup artists. LE BOOK is referenced by the most influential decision-makers and trendsetters for all high-end photo, film, video production and event-related services. A source of inspiration for creatives worldwide, LE BOOK contains more than 4,000 pages of visuals and listings that have been carefully edited by the most influential image-makers in the fields of photography, fashion, music and design. Its website, LEBOOK.com, is an internationally accessible reference featuring visuals and contact information for industry creatives worldwide, as well as an online magazine "La Creative Connection" - showcasing some of the best ad campaigns of our time. Benefits: 10% off advertising, 10% discount off retail price when purchased directly through LE BOOK. Members in the US only may order by calling M·A·C Customer Service at 800-387-6707 ext. 8555 or online at macpro.com. Click here to view LE BOOK. Copies are also available at M·A·C PRO stores only in Los Angeles and New York Member must present valid M·A·C PRO card at time of purchase. www.talentnetworks.com 212-929-3633 or casey@modelnetworks.com TalentNetworks.Com is a Business-to-Business web-site for the fashion, arts and entertainment industries. This site contains a comprehensive array of industry listings, portfolios and news items, providing a range of opportunities for talent, artists and creative professionals to promote themselves and identify each other. TalentNetworks.com enables companies in the entertainment and fashion industries to find and book talent, access current and complete portfolios, communicate with clients, and market their talent and services. Benefits: (new clients only): 20% discount on online portfolios and non-standard listings, 10% discount on website design and hosting. Member must present valid M·A·C PRO card at time of purchase.

DISCOUNTS FROM SELECT MAKE-UP SCHOOLS

These are the things that are available to MACPRO members.Through this memebership they are paying a price to get more business for themselves and job opportunities. They get a chance to make connections and show their ability as a professional makeup artist.

M.A.C. uses UPS as an intermediar for online products. However, many of M.A.C. sales are done instore because of their personal selling strategy. Also M.A.C. has create a few strategic alliances. A strategic alliance is a cooperative agreement between business firms. M.A.C. has doen alliances with Macy's and different fashion show during fashion week. M.A.C. trust thst Macy's is a wellknown and diverse company that will sustain the M.A.C. position as a high quality and convient cosmetics. On the other hand, Fashion shows trust that M.A.C. PRO teams will be able to achieve the looks that the fashion show directors are looking for.Trust is the condition that exists when one party has confidence in an exchange partner's reliability and integrity.

chapter 8.Segmenting and Targeting Plans

M.A.C. Markets to different market needs. A market is define to be people or organizations with needs or wants and the ability and willingness to buy. These markets are composed of different market segments, a market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Therefore, when the market is divided into meaningful, relatively similar, and  identifiable segments or groups it  is called market segmentation. M.A.C. uses market segmentation to achieve their company's objectives;to create cosmetics for all ages, sexes, and races.

The different variables in segmentation

 Geographic segmentation is self explanatory. It is segmenting markets by region of a country or the world, market size, market density, or climate. M.A.C. Marketing strategy varies according to where it is located and what is the trend of their locations. M.A.C. has many locations in in south and west Africa. They change their stock according to the skin pigmentation of the people in that continent.

Demographic segmentation is segmenting markets by age, gender, income,ethic,background, and family life cycle. M.A.C. has cosmetics for everyday use, theatre, models,actors, men and women. M.A.C. does not have cheap products, but they are affordable for an average American. However, they do change the size of the product to make prices a little lower to teenagers and other people with lower income that are still interested in using M.A.C. Products.

Psychographic segmentation is segmenting markets on the basis of personality, motives, lifestyles, and geodemographics. Marketing in china, M.A.C. Uses hello kitty and other cartoon characters for packaging. Due to the fact, that they are big fans of cartoon characters. M.A.C. Markets to Brazil and India by having strong pigmented colors and many different cosmetics that enhances the facial features. Employees at M.A.C. Show customers how to do contour that will refine the nose and make cheekbones look more defined. One important location also is Paris because they are very involved in fashion. 

Benefit segmentation is the process of grouping customers into market segments according to the benefits they seek from the product. M.A.C. Groups their products according to skin conditions, skin pigmentation, everday cost ices, and professional theatre cosmetics.

M.A.C. Cosmetics are positioned as high quality. M.A.C. Cosmetics are mostly advertised by word of mouth, between regular customers and makeup artist. M.A.C. is known to be the best cosmetics for  cameras and heavy theatrical lights.

Chapter 11. Developing and Managing Products

Many different companies manufacture different product, that we purchase blindly. Therefore, i believe it is important to understand what is a new product and the process of it. First an foremost, A new product is a product new to the world, the market, the producers, the seller, or some combination of these. M.A.C. is consistently coming up with different products with their new product strategy. A new product strategy is a plan that links the new product development  process with the objectives of the marketing department, the business unit, and the corporation. When creating new product, M.A.C.  Looks to enhance and facilitate consumers makeup techniques, increase their variety, and of course increase sales.

The development of a product is influence by many different factors. The different factors that influence the product development are makeup artist, M.A.C. employees, product reviews made by customers, M.A.C. Pro teams, and fashion show directors. M.A.C. Brainstorms about all the different ideas that are created to vary a product and solve different product errors. Through this M.A.C. Has maintain their competitive  advantage. M.A.C. has branched out and developed many different products. Such as nail polished , a fragrances, skin care products, and top of the line makeup brushes.They have innovated different products by making the same product into convenient travel size items, oil free, and full coverage. Products that are oil free and full coverage I must say from experience are products that are very successful at achieving a confidence boost in customers. Makeup is made to enhance beauty and create a difference from your natural self. This is why M.A.C. Is successful at creating new products, because they make customers feel good with the compliments they receive. Due to the fact, that the products are great quality and achieve the purpose

of its use.  

Travel Size items 

 

 M.A.C. Has also expand by developing products with the face of different artist, such as Rihanna. Rihanna as the face of  "RiRi loves M.A.C." product Line, has help M.A.C. promote their products. M.A.C. manufactured the lipstick Ruby Red for Rihanna.However, donating all the money made from that product to HIV awareness. Having her as the face of the item ruby red, has attracted more people to buy it because they feel they are supporting her as a fan, receiving a great product, and contributing to good cause.

Chapter 18. Social Media and Marketing

Social media is any tool or service thats uses the internet to facilitate conversations. However, many different companies have used social media as a marketing channel. Social media is meant to give people a social experience not a marketing experience. M.A.C. uses Facebook, Twitter, Tumblr, Instagram, and youtube to keep a connection with their consumers and most importantly market their current and innovative products. M.A.C. also use social commerce as a social media. When purchasing anything on M.A.C.'s website, M.A.C. provides rates and reviews to assist the consumers online buying.

M.A.C. is not the company to overwhleme customers with advetisement. They advertise by word of mouth , as i said in my previous blog, they have trained makeup artist at their different location,to help sell products. However, they have used social media to create a channel between the customers and M.A.C.. They want consumers to be able to speak to M.A.C. employees and other people who have used M.A.C. Some of the Employees at M.A.C. are assigned to do the social media monitoring. Social media monitoring is the process od identifying and assessing what is being said about a company, individual, product, or brand. The employees also answer questions. MA.C. has over 6 million followers on facebook,over 300,000 on twitter, over 200,000 on instagram, and youtube in my opinion is the best social media for the marketing for M.A.C. products. On youtube you have alot of whats called crowdsourcing. Crowdsourcing is using consumers to develop and market products. The reason why i say this is because you have different makeup artist on youtube using M.A.C. products to do makeup tutorials. On youtube you learn different techniques on how to use M.A.C. brushes and what colors to coombine to creat different looks.

 <---Rihanna tweets Also helps with the marketing of M.A.C. products. Her tweets invites her fans that may have not been M.A.C. consumers to buy M.A.C. products to support her.

Instagram collages of M.A.C. consumers and M.A.C. products--->











Blogging is also a form of social media. A blog is a publically accesible web page that functions as an interactive journal, whereby readers can post coments on the authours entries. My blog page is consider a marketing strategy to further understand M.A.C. as company. Also to get more involved with M.A.C.'s objectives.

Chapter 10. Product Concepts

M.A.C. Cosmetics can be both a business and consumer product. A business product is a product that facilitates an organizations operation. Photographers, theatre industries, and fashion show directors all need cosmetics to give models and actresses the creative ideal look. M.A.C. facilitates these different industries with high pigmentation and long lasting cosmetics. M.A.C. Cosmetics was originally made for professional users, which is why it looks amazing behind cameras and bright show lights. On the other hand, a consumer product is a product bought to satisfy an individual's personal wants. If we use women M.A.C. consumers as an example, we will notice that many women are looking to make up for their flaws. Such as acne, wrinkles, uneven skin tone, and scars. M.A.C. Cosmetics is capable of transforming your face completely, if done correctly. however, M.A.C. products are not a convenience product. M.A.C. products are a shopping product. A shopping product is a product that requires a comparison shopping because it usually more expensive than a convenience product and is found in fewer stores. what makes M.A.C. a shopping product, is that it is not found at your local drug store.

             A product item is a specific version of a product that can be designated as a distinct offering among an organization's products. M.A.C. is an example for product item. M.A.C. has used different cartoon character and famous music artists to product different product lines. A product line is a group of closely related product items.Such as Riri loves M.A.C., Archie's girl, Wonder Women, Hello Kitty, etc. All of these product lines are created by the product mix of M.A.C. product mix are all the products an organizations sells. The products M.A.C. sells that are part of the different product lines are Lipliners, lipsticks, lip glasses, blushes, eyeshadows, makeup brushes, and eyeliners.The video below also shows a variety products of M.A.C.  products and colors.

M.A.C.  has been successful at keeping their brand equity. Brand equity is the value of company and brand name. This has be proven because many people buy M.A.C products, aside from the high price they are required to pay. Also because M.A.C. does not o much advertising most of their advertising is done through word of mouth. M.A.C. brand is a global leading brand. A global brand is a brand that obtains at least a third of its earning from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data. M.A.C. has made itself available online and has placed different locations all over the world. M.A.C. also adapt each store to where it is located. M.A.C. has used their Hello Kitty product line to sell China. 

                         

Chapter 17. Personal Selling and Sales Management

 Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. This has its pros and cons. All of the M.A.C. stores have a minimum of 3 make-up artist that are willing to help, at all times. They also have a live chat on their website. M.A.C. employees have personal selling skills and knowledge of the cosmetics, which give them the ability to find cosmetics that fit the customer best. Therefore, it leads the customer to discover other cosmetics that they didn’t know about. The pros are that the customer will buy an item that they are completely satisfied with. However, for some people the cons are that the customer will end up spending a whole lot more than they expected.

Never the less, I believe M.A.C. is a Customer centric company. Customer centric is a philosophy under which the company customizes its product and services offering based on data generated through interactions between the customer and the company. Having this philosophy impacts a company’s decision for future innovation. One of the systems M.A.C uses to learn about the customer is online rating and reviews. Also, M.A.C. has individual records of what people buy in stores. When purchasing at M.A.C. they ask for basic information to keep track of what you have bought in the past. This not only helps to build a relationship with your potential customer but also to develop a personal selling process.

Chapter 16. Advertising Public Relations and Sales Promotion

M.A.C. heavily relies on testimonials and advertisements through fashion shows, celebrities, magazines, and makeup artist that are blog owners. Compared to other cosmetic companies, M.A.C. Does not invest nearly as much money on advertisement.However, M.A.C. Invests not only money but a lot of time in their HIV awareness campaign. Although this campaign is to bring awareness and knowledge of how to prevent HIV, it has also invited new consumers to buy their product. Consumers that agree with the campaign will buy products from M.A.C. To show support. Therefore, it will lead to the consumptions of more products once they are in the store or searching online.

The HIV/aids campaign was establish in 1994 by the founders of M.A.C.,Toskan and Angelo. All the money made by the "Viva Glam" lipsticks and lip glasses are given completely to the M.A.C. Aids fund. The annual reports show that in 2012, they raised 250 million dollars. In this cosmetic line of Viva Glam, M.A.C. has had Nicky Minaj, Ricky Martin, Lady Gaga, and Fergie advertising their products. The publicity that these artist have, has also encourage fans to buy and support this campaign.

M.A.C. Cosmetics is the official sponsor of the Fashion Week in London, Sydney and co-sponsor for Tokyo's fashion week. M.A.C. as you can imagine is also involved in the fashion week in New York City. M.A.C has a pro team of over 120 makeup artist. The Pro team has worked with the finest makeup artist. Such as Polly Osmond, James kaliardos, Lucia Pieroni, and much more. M.A.C.'s Pro team is in charged of creating most of the makeup looks for very well known runways around the world.

M.A.C. has also made a cosmetic line call "RiRi loves M.A.C.". Being that this line is influenced by Rihanna, other social media have be updating on her makeup. Such as hollywoodlife, MTV, perezhilton, just jarred, and Rihanna herself has also posted tweets with information on her new products. M.A.C. Does not emphasize on advertise but in being able to bring forth a product of  quality. This strategy has made not only the media but consumers to want to speak and advertise M.A.C. products.
http://hollywoodlife.com/2013/10/18/rihanna-mac-collection-riri-hearts-mac-holiday-makeup-cosmetics-2013/
http://style.mtv.com/2013/09/12/rihanna-new-mac-ad/
http://perezhilton.com/cocoperez/2013-09-16-rihanna-versace-mac-fall-collection-hong-kong-launch