Tuesday, December 3, 2013

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
  • PRO ONLY EVENTS & NETWORKING OPPORTUNITIES
  • PASSWORD-PROTECTED WEBSITE, MACPRO.COM
  • PRODUCT DISCOUNTS
  • COMPLIMENTARY SHIPPING FOR ORDERS OVER $150
  • DISCOUNTS FROM SELECT INDUSTRY PUBLICATIONS
  • 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.







    Sunday, December 1, 2013

    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.