Analysis of Marketing and Communication Strategies for MAC Cosmetics

This report analyzes the marketing and communication strategies of MAC Cosmetics, focusing on the launch of a new matt lipstick range. It covers various aspects, including pricing strategies considering internal and external factors, such as economic conditions and the brand's premium positioning. The report explores the use of pricing techniques like decoy and package pricing to attract customers. It also discusses short-term pricing strategies, such as psychological pricing, to create initial customer awareness. Furthermore, it delves into payment methods, delivery tracking, and customer service strategies, including customer response systems and help portals. The report also examines ways to build customer relationships, such as active staff responses and quality communication, and the importance of gathering customer feedback to improve services and offers, including direct response offers like free trials or money-back guarantees based on customer feedback. It emphasizes the significance of delivery status and account information for a positive online shopping experience.

Running head: MARKETING AND COMMUNICATION
Marketing and Communication
Name of the Student
Name of the University
Author note

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Table of Contents
Part A- Direct Response Offer...................................................................................................1
Answer 1................................................................................................................................1
Answer 2................................................................................................................................1
Answer 3................................................................................................................................2
Answer 4................................................................................................................................2
Answer 5................................................................................................................................3
Answer 6................................................................................................................................3
Answer 7................................................................................................................................4
Answer 8................................................................................................................................4
Part B: Written or Oral Questions..............................................................................................5
Answer 1................................................................................................................................5
Answer 2................................................................................................................................5
Answer 3................................................................................................................................5

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Part A- Direct Response Offer
Answer 1
Assessment 1 focused on the introduction of a new matt lipstick range by MAC
Cosmetics that will bring a changing factor in the cosmetic industry. This is because
professionals design the lipstick manufactured by MAC. These professionals test the color
and content of the lipstick that can suit every skin and is different from other lipstick range in
the market. The new lipstick range will be offered in variety of colors and each color will be
different from one another. The product will be packed in a cylindrical case and will also be
available in a pallet format along with a brush to use make it easily applicable by the
customers.
Answer 2
External and internal factor of n organization plays a crucial role in defining the price
of the product. Internal factors are the mission of the organization, structure of the business,
value system, corporate culture and others. Whereas the external factors are the political,
environmental, economy and legal factors of the country in which the business is operating.
MAC will also develop a pricing strategy depending on the internal and external factors
affecting their business.
External factor that will affect the pricing strategy of MAC for its new lipstick range is the
economic condition of the society. While planning for its pricing strategy MAC should
consider the economic condition of the country it is launching its lipstick such the per capital
income, living standard and the literacy rate.
The internal factor that will influence the pricing strategy of the company is the
mission and vision of the organization. This is because the vision and goal of the organization

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to stand as a premium brand will influence MAC to set high range of pricing for its new
lipstick range. Whereas, if the brand aims at targeting the niche market the it will allow the
charge high price for its product. Thus, the vision of the organization influences its pricing
strategy.
Answer 3
Various types of techniques a company uses to set its price depending on the aim and
requirement of its business. There are various types of pricing techniques such as contrast
principle, decoy pricing, package pricing, combination of decoy and package pricing and the
magic number nine. Among these types of pricing techniques, MAC can use two types of
pricing techniques such as decoy pricing and package pricing. This is because package
pricing will help the target the women customers such as setting the price by combining two
or three things together and presenting as discounts. This will attract more customers as
women have the psychology of buying more during discounts and offer. Another is decoy
pricing can be used by MAC as it is already a well-known brand in the cosmetics market that
women love to buy out of fame and status. It can set the pricing strategically on products that
it wants to sell more such as putting only before a price and combination of two things in
single price. For example printing “only for $30” will attract more customers than a normal
price tag.
Answer 4
Short-term pricing strategy that the company can use for its new range of lipsticks is
the psychology pricing. This is because for introducing the new product and to make the
customers aware of it the company can target the psychology of the customers. While using
psychology pricing, it can give discounts and offer on the product so that women customers
are attracted by it. Such kind of initial strategy will help the company to attract new
customers and to inform the existing customers about its new range of products that it is

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launching in the market. Charging a high price initially will not benefit the company as very
few customers get attracted to high price as a symbol of status. Thus, targeting the
psychology of the women, as they love discounts and offers will be the best way the company
can introduce its new product range initially in the market.
Answer 5
Another important factor that the company needs to decide in order to be successful in
its new product launch is by offering wide range of payment methods to the consumers. This
is because customers vary in their choice of paying the price of the product. The company
will allow the customers to pay through online mode of payment and through cash. The
online payment mode will help the customers to buy the lipstick even if they do not have
much cash with them. On the other hand, the customers buying lipstick from online website
can pay through cash on delivery after checking that they have received the correct order.
Both the type of payments gives the chance to the customers a wide range of options and
chance to buy the lipstick.
Answer 6
The next important thing that the company should ensure after deciding the payment
method and pricing strategy is the method by which it will track the delivery report of each
item to the customers. For proper brand value and attracting customer loyalty it is important
that the company keep a record about the delivery time of their product to the customers. For
the purpose the company should install a tracking software in which it ensure that the
delivery man takes the signature of the customer receiving their products. Further, as soon as
the customer receives the product the company ensures to send a delivery report to the
customer’s account for their approval. In this way the customer gets their products safely and
the company can also maintain the records easily.

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Answer 7
To ensure that the customers are getting best of service it is necessary that the
company enables a good customer service for clearing all the doubts and queries of the
customer. First method is that the company should implement a customer response system in
the order page. In the page customers can rate the product and give a reason for the any poor
rating. Another way is the customer help portal in which they can call and solve their queries
or track their products 24/7. These two processes will ensure that the customers are getting
satisfied responses and solution to all their queries.
Answer 8
Two most important service that the customer requires for a successful and good
experience from an online shopping website is their delivery status and information about
their account. For getting information about their delivery status MAC should implement a
tracking software in their online website in which the customer can get automatic notification
about their order as soon it is shipped or dispatched or ready for delivery. It is the easiest and
a hassle free method of tracking order.
On the other hand the customers can get their account information in my account
section in the online portal of the company. My account section of the website consists all the
required information of the customer’s accounts such as number of orders, account balance,
offers and other details. These are the two ways by which maximum customer satisfaction
can be offered.

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Part B: Written or Oral Questions
Answer 1
Three ways MAC should ensure that their staffs follow in order to build a healthy
relationship with their customers. First the staffs should be live actively for any customer’s
complaints. For the purpose the staffs should respond immediately to complains, either by
call or chat facility. Secondly, the staffs should maintain effective and good quality
communication with the customers. They should call the customers frequently to know their
queries and suggestion for better service. This will make the customers feel safe and close to
the company. Third is by building trust with the customers. This is because customer loyalty
is the best way to retain customers. The first two activities will automatically increase the
trust of the customers towards the company.
Answer 2
MAC should also follow up the customers frequently to get feedback about their
staffs and workers. Moreover, they can also get the feedback about their staffs by messaging
a feedback rating form to the customers just after a service in which the customers are asked
to rate the service they got from the staff from one to ten. This allows the company to track
the quality of customer service delivery of each staffs.
Answer 3
Direct response offer are offered by the company to attract increased customer traffic
and ensure better customer satisfaction. However, the company needs to design their direct
response offer they can provide to the customers depending on the issue put forward by the
customers in the feedback form. In case many customers are facing issues with the
appropriate color and texture of the lipstick then the staffs should ensure that they allow free
trial to the customers as their direct response service. Further if the staffs are reluctant in

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buying the product because of its high price then the staffs can set money-back guarantee
offer as their direct response offer. These are the steps MAC can set as direct response offer if
customers are facing any doubt about the quality and excessively high price of the lipstick.