research project the link between advertisement and sales and the impact it has on the customers in uk

This study will prove that advertisements through media are effective in order to spread information and attract new customers for products and services.. In this research on M.A.C Make-

To use the impact of media advertisement on people is the strongest tool that a business companymay think This study will prove that advertisements through media are effective in order to spread information and attract new customers for products and services Media reaches people allover the world, even in remote places, as country sides, where internet is not even known In this research on M.A.C (Make-up Art Cosmetics), the purpose is to find out how much effective can

be the media with its advertising for the sales of the company, and to examine the strength of thisimpact

This study on M.A.C is intended to be relevant for the relation between media advertisements and the efficiency of their sales among the UK customers The chosen type of research in order

to collect the information we need is the survey research This means that the data will be collected by completing a questionnaire especially designed for M.A.C customers Anticipated results are confirming how most, if not all consumers of M.A.C cosmetics were attracted throughmedia, by advertisements

Table of Contents

I

INTRODUCTION ………5

1 The research background ……….5

2 Research Objectives………8

3 Research questions……… 9

II LITERATURE REVIEW……… 10

1 The Influence of advertisment on consumer behavior……….…10

1.1 Classical buying behaviour model………10

1.2 The AIDA Model………11

1.3 The Maslow Pyramid………13

2 Methods to accomplish higher sales performance……… 15

3 The relationship between advertisements and sales performance……… 21

4 The role of advertisement for M.A.C ……… ….24

III RESEARCH METHOLOGY……… 24

1 Types of investigation ……… 24

2 Research Design ……… 25

3 Research philosophy ………25

4 Research Approach ……… 26

5 Data Sampling……… 27

6 Data collection……… 27

7 Ethical considerations ……….28

8 Gantt chart………30

V DATA ANALYSIS……… 34

VI RESULTS……….35

VII CONCLUSIONS………35

IX REFERENCES………36

I INTRODUCTION

1 The research background

The present research is intended to show and examine the impact of advertisement on people,how much it influences the growth of sales for a company There are three items to be takeninto consideration: Media and television, the advertisement and the company

The word "television" comes from the Ancient Greek term "tele", which means "far" and theLatin term "vision", meaning "sight" Television appeared in 1920, but it took several years tobecome popular, first in The United Kingdom (UK) and the United States of America (USA),after the Second World War The abbreviation TV came in use from 1948 During the 1950`s,this new technology called television, was present in institutions as well as in particularhomes and it was already the primary medium for influencing public opinion That`s whytelevision is used as a mass medium for advertising as well as for selected news andentertainment (TV shows, art movies,2018)

Advertisement (shortened as advert in UK and ad in USA and most other countries) orcommercial is a marketing concept created for a specific product or a service Its objective is

to reach many potential customers in the same time (Danaher and Dagger, 2013)

Marketing definition in www.dictionary.com is "the sum of actions included in thetransmission of merchandises from the manufacturer or supplier to the customer or shopper,along with publicity, transport, storage, and retailing." The American Marketing Association,the official organization for academic and professional marketers, defines marketing as:

"Marketing is the course of development and performing the outset, costs, advertisement anddelivery of concepts, products and services to produce interactions that pleases the buyer andthe companies’ purposes" (The American Marketing Association,2018)

This way we can consider marketing as a subdivision of business and also a social science ofinteraction between two parts One part consists of those which produce, advertise and sell(the producer - an individual or a company, the advertiser and the seller) and the other part iscreated by those that buy the goods or services (the buyer, the customer, the consumer) Theirinteraction is making an exchange In the previous, marketing was spread through traveling

salesmen, in our time, marketing uses other forms of media bombardment, like radio,television and the internet This study will give a strong proof that mass media is the best way

of helping marketing through adverts

For the last decades, the marketers used several different symbols or signs (called logo) torepresent their company or their specific products This was also intended to promote theirofferings (products or services) as well as to generate recognition among customers.Advertisements usually seek to generate increased consumption of their products or servicesthrough branding, the action of creating a brand A brand is the title of a type of productmanufactured by a company under a particular name The brand associates a product name orimage with certain qualities in the minds of consumers

Advertising is mostly a visual form of marketing communication which has an openlysponsored and non-personal message to promote or sell a product, service or maybe only anidea A non-personal message means that the message is not directed to an individual.(Fundamentals of Marketing, 1984)

The sponsors of advertisements are those businesses that intend to promote their products orservices in order to sell them to a large number of consumers The advertiser pays for and hasfull control over the message of his advert An advertising can be communicated throughmany mass media forms, from the traditional media, also called old media (such asnewspapers, magazines, outdoor advertising or direct mail, radio and television) and newmedia such as internet search results (google, for example), blogs, social media, websites ortext messages (Courtland L Bovee, William F Arens Contemporary Advertising, FourthEdition Richard D Irwin, Inc., 1992.)

With the technological advancement, service and production companies are tending to usemore electronic media (Danaher and Dagger, 2013)

In our last centuries (from the end of 19 century up to our present 21th), the companies are thusing many tools in order to promote their products and services and to reach as many customers as possible Mass media advertisement represents a very effective way of manipulating the final decision of people in buying products or use certain services Especially big companies and agencies use media advertising to promote a service or a product The adverts are seen on internet and cable television stations In general, TV advertisements are at least 10 seconds and no longer than 60 They be a break between

different TV programs (especially shows and movies) The cost of an advertising for television is always higher than the cost of a similar advertising on the internet, but it is with the price

As Danaher and Dagger stated that nowadays, as our society grew so commercial, massmedia adverts represent the perfect way to promote products and services (Danaher andDagger, 2013)

The case study chosen for the present research project is on M.A.C Cosmetics, which is notonly a famous brand, but on top of all cosmetics brands The abbreviation M.A.C stands forMake-up A Crt osmetics

M.A.C Cosmetics (stylized as M·A·C) was founded in 1984 in Toronto, Canada, by Frank Toskan and Frank Angelo Frank Toskan was a makeup artist and Frank Angelo a

photographer and salon owner They weren’t happy with the existing makeup products that could look well enough on photography’s, thus they took the decision to produce their own

In the beginning they prepared their cosmetics in their own kitchen and sold them straight from the salon to fellow makeup artists, models and photographers Toskan and Angelo launched M·A·C soon after that, due to their cosmetics increased popularity, from a counter in

a Toronto department store Today, the company has it’s headquartered in New York, US (M.AC Cosmetics-our history, 2018)

Products and services of M.A.C were created in the very beginning only for make-upprofessionals, photographers and their famous models It was a brand for the sake ofcelebrities that had to look amazing on screen and pictures Nowadays M.A.C products aresold worldwide, there are 500 independent stores all over the world The best makeup artistsare running the M.A.C stores Especially for them, there is the M.A.C Pro MembershipProgram, which is the very first membership program for make-up professionals in the wholecosmetics industry Those makeup artists that can show a proper certification would pay $35

a year in order to become a member of the program The advantages of the program are,among others, a huge discount on any M.A.C product (A brief history of M.A.C, 2011)

The vision statement of M.A.C Cosmetics is to be the biggest make up brand worldwide and according to the customers preferences, coming up with better products In order to advertise around the world, the new formed company decided to use celebrities images Among these celebrities, assuring M.A.C 's success, are Cher, Madonna, Mariah Carey, Janet Jackson,

Naomi Campbell, Rihanna, Nicki Minaj, Sharon, Kelly Osbourne and Princess Diana, only toname a few

Frank Toskan declared how initially he began to manufacture make-up for models, but after that the models wanted this amazing make-up also for their beloved sisters or friends.Today, the brand continues to work with in fashion show professionals: "From a niche brand[mostly for pictures or films], M.A.C has become a global brand French actress CatherineDeneuve, for example, is also a famous customer for M.A.C Cosmetics.(A brief history ofM.A.C, 2011)

On August 24, 2017, M.A.C Cosmetics broadcasted for the summer 2018, the new collectionthat will be using the estate of singer Aaliyah

M.A.C, as one of the top cosmetics brands, wishes to get the attention of the consumers alsoabout cosmetics that the company marketers use in TV advertisements (Business is great,2017) Most women use to watch a lot of TV during a day, as it was confirmed through astudy (Lilien, G L., Roberts, J H and Shankar, V., 2013)

The latest TV advert that M.A.C Cosmetics came up with on 7 of September 2018 laststh3,39 minutes, was called: “A trend is born and, backstage tested, artist approved” and it waspromoting the new lipstick called Studio Fix Stamp-Powder Kiss The short advert videosstory is directed as an introduction to the New York Fashion Week 2019 where M.A.CCosmetics is one of the main sponsors (A Trend Is Born: Backstage Tested, ArtistApproved,2018)

M.A.C Cosmetics must face a hard competition, even if the company performs many actions

in order to keep its leadership as the top cosmetics brand worldwide (Bloomberg, 2018).M.A.C Cosmetics has achieved mixed marketing actions and operations to continuouslyinforming and reminding their targeted consumers and the potential buyers that the offering

of their company is in many ways different from that of the competitors The ever-increasingglobal market competition determined the companies to adopt innovative methods to selltheir products and services It considered the usefulness of TV adverts as an effective tool inorder to promote and enhance the sales revenue, in order to acquire new customers and retainthe old customers (How to keep your business out of court, 2018) In this respect, M.A.CCosmetics, as the leading cosmetic brand worldwide, usually is promoted with the aid ofadvertising campaigns

3 Research questions:

There are four main questions that this research is going to answer

Q1 What is the impact of Media advertisement on consumer behavior in UK?

Q2 How can be accomplished higher sales performance?

Q3 What is the relation between advertisements and sales performance?

Q4 What is the role of Media advertisements for M.A.C Cosmetics?

II LITERATURE REVIEW

1 The Influence of Media advertisement on consumer behavior

Consumer behavior represents the step by step activities of the consumers when they are put

in the situation to decide if they need to purchase an additional item It is also fundamental toknow all the factors able to influence what they will buy as their final decision (Kotler et al,2009)

1.1 Classical buying behaviour model

In his famous book, "Consumer Behavior", Philip Kotler identifies a five-stage model for thistopic:

identified as a need, so creating a strong desire to get a product will be a need.Advertisements for M.A.C focus on beauty of celebrity figures with make-up, and their mainmessage is the promise than any woman can become beautiful only by using these cosmetics.

As it is known that any woman wishes to be as beautiful as celebrity stars, the Mediaadvertisement gives the required information to fulfil this desire The next step, the evaluation

of alternatives a consumer might have is related to business competition On the internet, onwww.ranker.com, a site where you can vote on the most reliable brands and cosmetics to use,one can find that M.A.C cosmetics are in the first position This makes M.A.C the best andthe most appreciated cosmetics brand This also contributes to the purchase decision of manyother new consumers in order to remain on first position (Ranker, The best cosmeticbrends,2018)

1.2 The AIDA Model

Modern marketing theory and practices used by MAC Cosmetics are based on AIDA model.This marketing model was introduced in 1898 by Elias St Elmo Lewis, an Americanadvertising advocate who wrote and spoke about the potential of advertising to educate thetastes of the consumers AIDA is an abbreviated form or an acronym standing for: Attention,Interest, Desire, ction.A

A - Attention or Awareness – using repetitive adverts meant to attract the attention of thecustomer

I - Interest - getting consumer`s interest by focusing on showing popular faces anddemonstrating the advantages and the benefits of the makeup product used by a famousperson, instead of focusing on features, as in traditional advertising

D - Desire - convincing customers that they want and desire the product and that it will makethem look as glamorous as they idols

A - Action - leading customers towards taking the action of purchasing products

In the purchasing process, the marketing strategy using AIDA model is increasing the trustlevel of the potential consumers to make him become a real buyer

Based on the needs of AIDA model, MAC Cosmetics’ aim of marketing is to attract theattention of potential customers by using the celebrities’ faces in media and TVadvertisement, showing how fantastic they can look with the help of MAC Cosmetics,arousing their interest and create the desire to the final purchase action

This is model used as a marketing strategy with the intention of expanding the lowest part ofthe triangle This means to increase the convert rate, so as the potential client will become areal buyer The limitations are that, only by doing it, will significantly rise marketing cost.However, the AIDA model was considered as very influential and frequently affects oursubcontinent (Butterfield, 1997)

MAC Cosmetic uses Mass media and Television since it represents the strongest tools that can attract the attention of the customers through repeated commercials Interest can be built also subliminally, and it will soon become a desire Once the individual notices the advertisedproduct available in a store, the instinctive impulse would be to purchase it, in other words to take the intended action.

1.3 The Maslow Pyramid

The famous Maslow’s hierarchy of needs is also relevant in order to know the human needswhich applies to the customers

This theory is illustrated as a pyramid with five levels, from the most basic needs in a hierarchical form (Sheth, 2012)

1 The first and basic level is for the largest, most fundamental needs of the human body; it refers to the physiological needs: food, shelter, sex, sleep and relaxation

2 Safety and Security needs include personal, emotional and financial feelings of being protected

3 Love and belonging to a society, a group, a family, a partner represents the third level

4 Self-esteem is the next level Esteem needs can be also defined as ego needs or status needs The individual develops at this stage a concern about getting importance, respect and recognition from others, a social status People often chose a profession or a hobby only for the sake of recognition These activities offer a sense of contribution or value to the individual

Maslow noted two versions of these esteem needs: a "lower" version and a "higher" version The "lower" version of esteem is a need that depends on others The individual aims for respect from others This may take different forms, such as a need for attention, recognition, fame and status The "higher" version is more self-confident, manifested as the need for self-respect, to prove inner strength, competence, mastery, freedom and independence

5 The highest level of needs refers to the person's full potential and the realization of that potential Maslow describes this level as the ultimate desire of fulfillment, to become the maximum of what one could be

THE MASLOW PYRAMID

Source: (Sheth, 2012)

The producer companies have to identify which needs their products or services are going tofulfil The role of advertisement is to emphasize and complete the meaning of the product orservice for the potential clients Psychology is highly applied in order to attract customers

In relation with the Maslow’s Pyramid, one can notice how strongest commercials point out all of the five levels (Rodger Streitmatter - Sex sells! The media's journey from repression to obsession) There is very popular to use sexually appealing imagery even if it has nothing to

do with the product or service in question

Most physically attractive models are used in advertising and this can be considered a form

of sex in publicity, related to the bottom level of Maslow’s Pyramid Physical attractiveness isexpressed enough through facial beauty, hair or skin This form of sex in advertising is highlyeffective because it draws attention and influences the overall feeling of the advert Still, this kind of commercials generate a connection between physical appeal and the merchandise The message sent to the consumers is that buying that product, they will achieve that kind of physique (Reichert, Tom 2,011- Sex in advertising: Perspectives on the erotic appeal)

Cosmetics are related to beauty, therefore they are promoted through this type of

commercials "Beauty is all about seducing people into wanting stuff that they don't even know what they wanted," James Gager, M.A.C Cosmetics creative director, declared in an interview (Mac’s creative director James Gager is still a make-up rebel at 70, 2018)

On the second level make-up helps a woman to feel more secure about her beauty; this is emotional security

The third stage of needs, the feeling of belonging and being loved is often associated with beauty Women want to be beautiful and loved, thus they tend to buy and use cosmetics.Related to the fifth level, make-up helps the self-esteem of a woman regardless her age or natural beauty As she can reach her full potential of beauty with the use of cosmetics, this is how the top of Maslow’s Pyramid of needs is applied and inspirational for commercials

2 Methods to accomplish higher sales performance

Higher sales are a crucial objective for the success of a company because the more products

or services a company sells, the higher the profit Peppers and Rogers consider that managers become concerned with decreasing client’s loyalty as other companies take their clienteles using promotions and offering rewords (Peppers and Rogers 2004)

In our present times companies have to face a completely different situation than in the past: the markets have become liberalized and global and thus, they are characterized by high competition (Bang Nguyen, Dilip S Mutum, 2012)

Snow and Hambrick define strategy in general as a plan in an organization which includes theallocation of resources that are necessary to achieve the company’s goals (Snow andHambrick 1989) Thereby it is important to mention that strategy exists at various levels in acompany (Venkatraman 1989)

As Panagopoulos and Avlonitis observed, the literature about sales strategy is very limited.But it can be stated that in general two perspectives of sales strategy are dominant Firstly, at

an individual sales person level and secondly regarded from a company level Ingram et al.describe sales strategy as the method by which a company chooses to relate to its clients andact together with them within a market segment to achieve the marketing objectives (Ingram

et al 2002) Sales strategy involves companies dealing in fields like customer segmentation,prioritization and multiple sales channels (Panagopoulos & Avlonitis 2010)

M.A.C Cosmetics use primarily their own official site, https://www.M.A.C cosmetics.com,which is photo-dominant They also have mobile sites.

6) Cold call, when the seller calls the potential clients, which wouldn’t apply to MAC.7)The 100 Calls Method is calling 100 persons, regardless if they want or not to listen ortheir willingness to buy, only their number matters Brian Tracy recommends this methodwhen you start selling The reason is to overcome fears of being rejected Instead of these oldtechniques, M.A.C Cosmetics advertise their products also through direct mailing

8)Proper Negotiation Techniques are also called “win-win” situations, where both parties are content with the outcomes of the trading

9)Effective Presentations Brian Tracy recommends an effective PowerPoint presentation.M.A.C Cosmetics use creative and amazing TV adverts They inspired many students to create new commercials as university projects, but as they are spreading them on popular sites as youtube.com, this only increases the popularity of the brand and attracts even more costumers (Brian Tracy - The Psychology of Achievement,2018)

10)Keeping the customer for life

“Once a customer, always a customer.”is already a well-known saying in the business areaand it is also the title of a best-seller by Chris Daffy

The meaning is that if a customer has purchased a product at least once, there is a highpotential to keep this client for life One purchase should never be the end of the relationshipwith that buyer It is strongly recommended to focus on keeping a good relationship with thecustomers This will only create more trust and add value to the products or services thecompany is selling

Image is very important to M.A.C Cosmetics, that’s why famous people, icons, TV, cinema and music stars are M.A.C Cosmetics image From Madonna to princess Diana, Cher, Rihanna, Ariana Grande to Cinderella and Barbie, due to all of them, M.A.C sells and peoplelove it The newest creation is March 2018 “Melt Cosmetics” inspired by late famous singer Aaliyah (Melt Cosmetics’ new Aaliyah-inspired make-up cosmetics is cool as hell, 2018)

11)Offering the potential customers something great, for free.

The principle is that the perfect client is more probable to buy the product that has a preview

to try out A video-presentation of the product in action will do the job, in other words an advert will be of great help This is like giving the customers a free piece of great content andget them excited for what’s about to follow

For example, M.A.C Cosmetics company offers many discounts to its customers, it even has

a yearly tradition to offer free lipsticks to its loyal customers This year, for the celebration of National Lipstick Day that took place on Sunday, July 29th, M.A.C advertised their action of giving over half a million free lipsticks at any MAC shop

(How to Get Free Beauty Products and Discounts with These 13 Amazing Loyalty Programs,2018)

12) Giving the customers the exclusivity

If the company will be having a new product, it is important to let the customers know It willbring excitement among them, it will build trust with them and it might even determine them

to buy more because of it (Brian Tracy - The Psychology of Achievement,2018)

13) The sales message should be clear

The benefits of a product need to be made clear in the sales headline It is important to make

it clear to the customers exactly what a product is going to do for them It is required to bespecific about the benefits that the product might bring, and the seller needs to come up withsales messages for different clients that they can relate to

(Brian Tracy - The Psychology of Achievement,2018)

MAC Cosmetics was founded with the mission: “Establish MAC Cosmetics as the ultimatecolor authority.” (M.A.C Cosmetics-Christina Foy, 2018)

14)The right price

A company must conduct market research on its competitors to find out the correct costs forits product For a high-priced product, it must be prepared to over-deliver quality to thecustomers