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McIntosh Marketing Question. . .

H

henry.bowman

Active Member
Recent discussions here got me thinking a bit about McIntosh and their marketing. I wonder if anyone can provide insight on this.

McIntosh doesn't do much advertising, if any, right?

They don't really care to market their new products much, hence the website being a bit dated, and the lack of new product information. Although I will say they've marketed the XRT2K and MC2KW's well at the live events.

They're selling all they can build, as evidenced by their pricing and warranty policies.

So why do they hit the shows so hard? I'm wondering why they'd take 28 pallets to CES. They always seem to make big presentations at CES and the big shows throughout the year.

I'm just curious about the strategy, and whether they even WANT to grow. Or is the marketing there, and it's just stealth. . . like Robb Report, etc. . .

Opinions? Insight?
 
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They're selling all they can build, as evidenced by their pricing and warranty policies.
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Well, not an explanation of why there is little marketing, just a thought, with all the backorders their certain products generate without the marketing efforts, what would happen if they did advertise and market heavily? There is only so much a facility and hand labor/assembly can handle. I had to wait over a month for my 501s to be built.
 
PHC1 said:
Well, not an explanation of why there is little marketing, just a thought, with all the backorders their certain products generate without the marketing efforts, what would happen if they did advertise and market heavily? There is only so much a facility and hand labor/assembly can handle. I had to wait over a month for my 501s to be built.
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Agree!:yes: I had to wait 7 weeks for my MCD1000 & MC501's and another 3 more for the MDA1000.:tears: Waiting is terrible on the mind BUT once received, its music all the way.:music: Definitely worth the wait, ........... :thmbsp:
 
McIntosh Marketing, or Lack Of

I believe this is an interesting question, one that many members may gloss over, including McIntosh. We need to keep in mind that McIntosh has been 'bought-out' twice in the last 15 years or so. How many members would seriously consider buying stock in a company with such a track record.

I do not believe that any company, regardless of past or current sales, should ever take customers for granted or show disrespect for them. Market conditions and competitor activities can change buyer preferences quickly. I read yesterday where the share price of Whole Foods dropped 40% in 2006 as other food chains began offereing organic products at lower prices thereby cutting into Whole Foods's market share.

The recent home theater trend has encouraged many home owners to spend money for expensive TV/audio products. Many have financed these purchases with home equity loans and new home 'cash-out' options. This trend may not continue.

Many baby-boomers recognize the McIntosh brand and have been willing to purchase the products with their earnings. It is yet to be determined if they will continue to purchase the ever increasing prices for the brand once they retire and have to do so with savings.

If I were McIntosh, I would be concerned about the 'next' generation. I have 5 adult daughters and son-n-laws and none of them or their friends own McIntosh gear. As a matter of fact, other than my family, none of them know anything about the brand.

I am retired from a major oil company and live in the fasest growing area of Houston. I attend one of the largest and fastest growing churches in the US. I do not know anyone who owns McIntosh except me. As a matter of fact, other than close friends who have been over my house, I do not know anyone that has even heard of McIntosh.

All the people mentioned above may not own a Lexus or Rolex, but they at least know and respect the brands and many hope to own one or both someday. If I were McIntosh, I would re-think my Marketing plan, both for the present and future.
 
william.keith said:
I believe this is an interesting question, one that many members may gloss over, including McIntosh. We need to keep in mind that McIntosh has been 'bought-out' twice in the last 15 years or so. How many members would seriously consider buying stock in a company with such a track record.

I do not believe that any company, regardless of past or current sales, should ever take customers for granted or show disrespect for them. Market conditions and competitor activities can change buyer preferences quickly. I read yesterday where the share price of Whole Foods dropped 40% in 2006 as other food chains began offereing organic products at lower prices thereby cutting into Whole Foods's market share.

The recent home theater trend has encouraged many home owners to spend money for expensive TV/audio products. Many have financed these purchases with home equity loans and new home 'cash-out' options. This trend may not continue.

Many baby-boomers recognize the McIntosh brand and have been willing to purchase the products with their earnings. It is yet to be determined if they will continue to purchase the ever increasing prices for the brand once they retire and have to do so with savings.

If I were McIntosh, I would be concerned about the 'next' generation. I have 5 adult daughters and son-n-laws and none of them or their friends own McIntosh gear. As a matter of fact, other than my family, none of them know anything about the brand.

I am retired from a major oil company and live in the fasest growing area of Houston. I attend one of the largest and fastest growing churches in the US. I do not know anyone who owns McIntosh except me. As a matter of fact, other than close friends who have been over my house, I do not know anyone that has even heard of McIntosh.

All the people mentioned above may not own a Lexus or Rolex, but they at least know and respect the brands and many hope to own one or both someday. If I were McIntosh, I would re-think my Marketing plan, both for the present and future.
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I'm not exactly sure where your coming from. They a have huge following & a superior product; call it Stealth Marketing.

As far as name recognition, they are one of the best. It takes 28 pallets to get to CES beause of their vast product line.

As far as the "bought out twice in the last 15 years" lucky I didn't know about it. I would have had a sincere interest for what it last sold for! Just my .02

:thmbsp:
 
william.keith said:
I am retired from a major oil company and live in the fasest growing area of Houston. I attend one of the largest and fastest growing churches in the US. I do not know anyone who owns McIntosh except me. As a matter of fact, other than close friends who have been over my house, I do not know anyone that has even heard of McIntosh.
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I have been living in Houston since 1963, hate the place, but there I am. I have a rather nice classic McIntosh setup, upgraded several times since early sixties. The new McIntosh gear is just too expensive for me, but the good news is that what I have will probably outlast me anyway so no worries there.
No one that I know of among our friends cares about hi end audio, every one is into HDTV, plasma vs other types. home theater and all, that is all that they talk about. I am glad that you own a Mac here in Houston, that makes two Mac owners in the 4th largest city in the USA.
 
Masterlu, that is the issue, they have a superior product but it takes 28 pallets to get it all to a show. High prices and weight are a problem with many people. Why not better cultivate your existing customers with products that are reasonable in price and handling and try to introduce the brand to a broader base of potential customers?
 
william.keith said:
Masterlu, that is the issue, they have a superior product but it takes 28 pallets to get it all to a show. High prices and weight are a problem with many people. Why not better cultivate your existing customers with products that are reasonable in price and handling and try to introduce the brand to a broader base of potential customers?
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Most Mc buyers don't want "reasonable" gear. They're paying extra for robust construction that has the appearance of being bulletproof and for 1,200 watts where 200 watts would do.

I know I am... :D
 
william.keith said:
Masterlu, that is the issue, they have a superior product but it takes 28 pallets to get it all to a show. High prices and weight are a problem with many people. Why not better cultivate your existing customers with products that are reasonable in price and handling and try to introduce the brand to a broader base of potential customers?
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sounds like it would become watered down B&M crap. superior products cost superior money...what if Ferrari made a car that a broader range of people could afford. that vehicle COULDN'T handle, accelerate, brake, etc. like it's more expensive brothers...it would just be another car on the road. besides, i don't think i want everybody and their brother owning what i paid dearly for. i think it's a pride thing.
 
Speaking as a "marketing" professional, I think most of you have missed the boat. You think marketing is all about advertising, which it is not.

In Marketing, a key metric of effectiveness is bang for the buck. Advertising, has a stigma in marketing circles of being OK for awareness, but a very poor bang for the buck overall (compared to other means of promotion).

McIntosh does a little advertising, but it seems (from the outside) they put a lot of marketing effort in other areas which provide bigger bang for buck

E.g. Public Relations (look at all the product reviews they've had the past couple of years), Dealer training and promotion (you've got to keep the front lines primed), networking and trade-shows (AA, AK, Rockymountain Fest) included, giveaways.

I think they are very smart and get very far with what they do. Some companies blow their entire marketing budget on a couple of ads, and then have no money to do all the rest.

Ask yourself, would more people buy more McIntosh gear if the website were slicker? Not so sure. Though ... I am biased to seeing big beautiful pictures of gear ... makes me want.

Name me one company hi-fi/audio company that does better marketing. I can't think of any.
 
Number 9 said:
Speaking as a "marketing" professional, I think most of you have missed the boat. You think marketing is all about advertising, which it is not.

In Marketing, a key metric of effectiveness is bang for the buck. Advertising, has a stigma in marketing circles of being OK for awareness, but a very poor bang for the buck overall (compared to other means of promotion).

McIntosh does a little advertising, but it seems (from the outside) they put a lot of marketing effort in other areas which provide bigger bang for buck

E.g. Public Relations (look at all the product reviews they've had the past couple of years), Dealer training and promotion (you've got to keep the front lines primed), networking and trade-shows (AA, AK, Rockymountain Fest) included, giveaways.

I think they are very smart and get very far with what they do. Some companies blow their entire marketing budget on a couple of ads, and then have no money to do all the rest.

Ask yourself, would more people buy more McIntosh gear if the website were slicker? Not so sure. Though ... I am biased to seeing big beautiful pictures of gear ... makes me want.

Name me one company hi-fi/audio company that does better marketing. I can't think of any.
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BOSE:yes:
 
There is a saying: You develop your marketing strategy to support how people actually buy.

Now thinks audiophile. Think well-heeled audiophile with some $ to spend.

Bose is very effective at what they do, because they market a "mass-consumer" type of product. Its all about shipping many units to people who are ignoramasus about hi-fi. Be everywhere. Have a strong brand presence. But ... is Bose hi-fi?

McIntosh is in high-end audio ... a niche. A very small niche. Not to say all that Bose does is not applicable, but I don't think McIntosh would be effectively using their marketing $ if it were placing ads in Martha Stewart or Gourmet magazine. Likewise, for dedicated displays at Best Buy. Bose is good at what they do, for what they do, but their approach would not work in attracting the type of buyers McIntosh caters to. Not IMHO anyways. You don't see Patek Phillipe or Lexus placing ads in TV Guide.
 
I own a fairly modest system by McIntosh standards, a MA6500 amp/pre amp and LS340 and LS320 speakers. I do not feel like it is "watered down crap". It plays very nice music, looks beautiful, and it didn't break the bank.
 
As high end goes mcintosh has some of the variety of mass marketed gear, integrated amps, stand alone pres and amps of different types and output, tuners, CD players, speakers etc. all are of outstanding quality. I bet the overall number produced are higher than many other high end companies. I bought cheappie speakers for my girlfreind at Circuit City and was very surprised when the salesman in his early twenties was very familiar with Mac and even tube gear. But I also know people in their fifties who never heard of Mac. Ever since high school in 1980's I wanted a Mac, now I have several vintage pieces.
 
number 9 said "Name me one hi-fi/audio company that does better marketing. I can't think of any."

i never said Bose was hi-fi but they are an audio company.

william.keith i never said Mac had anything that was "watered down" but would have watered down products if the original poster's plan was put into place.
 
Interesting. McIntosh is a relatively small company with a very limited advertising budget that needs to cover most of the world! Bang for the buck is what it's all about. Focusing on shows appeals to their dealers and the hard core enthusiasts that are the basis of word of mouth advertising. A very logical way to go. PR, promoting reviews is also critical.

I too have very few friends and acquaintences familiar with McIntosh or with any interest in high end audio. On the other hand, the 'real audiophiles' still often put their noses up to McIntosh (which is fine with me.) However, I don't think familiarity would make them any more likely to buy. When someone decides to invest in a good auudio system or home theater, they will set a budget, do some research, go shopping at some mass market and boutique stores, and then maybe, will find their way to McIntosh. Or, if they are fortunate enough to be friends with one of us, they will be directed straight to the promised land!!!

Would more marketing sell more product? Probably. But if they cannot make it fast enough, why spend the money? Expanding production and moving down market is a very bad idea. This often ruins great luxury brands. The resulting product would likely be a rebadged Denon for a premium price which the press and us McNuts would rip to shreds. Remember the Cadillac Cimerron and the Porsche 924, they nearly destroyed those companies. Everyone wants a cheap Rolex except all the people that own expensive Rolex's!

The greatest marketing coup in high end audio was definately Mark Levinson getting into Lexus. A far more obscure name shot past McIntosh in recognition with this brilliant move. Mcintosh makes fantastic car audio. Getting Mac's into BMW, Porsche, or Mercedes as an OEM system would be an incredible move and would be highly profitable instead of costing them anything! Harmon Industries business objective is to make their high end equipment (ML, Revel, Lexicon) to be considered main stream luxury items like Rolex and Louis Vitton. I think Mcintosh is far better suited to take this role, but it will take some slick moves like a luxury car tie-in. I would love nothing more than an OEM McIntosh system in my 650i!

JR
 
Number 9 said:
Speaking as a "marketing" professional, I think most of you have missed the boat. You think marketing is all about advertising, which it is not.

In Marketing, a key metric of effectiveness is bang for the buck. Advertising, has a stigma in marketing circles of being OK for awareness, but a very poor bang for the buck overall (compared to other means of promotion).

McIntosh does a little advertising, but it seems (from the outside) they put a lot of marketing effort in other areas which provide bigger bang for buck

E.g. Public Relations (look at all the product reviews they've had the past couple of years), Dealer training and promotion (you've got to keep the front lines primed), networking and trade-shows (AA, AK, Rockymountain Fest) included, giveaways.

I think they are very smart and get very far with what they do. Some companies blow their entire marketing budget on a couple of ads, and then have no money to do all the rest.

Ask yourself, would more people buy more McIntosh gear if the website were slicker? Not so sure. Though ... I am biased to seeing big beautiful pictures of gear ... makes me want.

Name me one company hi-fi/audio company that does better marketing. I can't think of any.
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As another marketing/PR professional, I think Number 9 is right. Marketing is all about ROI and I can understand why McIntosh is not buying full pages in USA Today. Its market is not there. That is fine.
However I think they could improve the PR part with more reviews which in my personal opinion are not at par with other high end companies. A simple Google search will show how many reviews we had in the past year. Not many.
On the other hand, all of us act as marketing/sale agents (for free) any time we brought a friend to our houses and proudly show our systems. Happy and loyal customers is the best marketing tool you can have.
I am the "audio video consultant" for a lot of my friends. They are slowly moving from carp to Bose to Harman Kardon, very slowly...one day they will bite the McIntosh bullet because after listening to my system they want it.
(And if they see and listen to Masterlu system they will die of sonic shock :D ).
So, in a nutshell, you sell cheap to many or expensive to few. I think McIntosh marketing is the right one for the company and the product it sells. PR could be improved though.:music:
 
This whole thread does bring up very interesting topics. For us, McIntosh is our anchor, making up over 50% of our annual sales. (new and used) For a dealer to be so reliant upon one manufacturer should be stressful. However, it is McIntosh...the ONLY manufacturer left from 50 years ago that has not gone mass production or just plain disappeared. In fact, McIntosh is the ONLY product that actually gains value! That said, here are a few of our concerns as dealers...

1. The majority of our customers are 50+. We do not see many young people coming in lusting over the McIntosh. When our current customers were young, they did lust over McIntosh and eventually invested in the product. The younger generation now is about Surround and i-pods. But also think about this from the prospective of McIntosh....who is going to be able to afford the current product? Most likely not people in their 20's unless life has been extremely good to them. I think that this is where a dealer such as ourselves does help at times. Since we offer the used products, with a warranty, people can purchase items at a decent price without having to do a home equity loan or any major financial move. We do highlight the McIntosh line because all of us here believe in it, own it and truley love it! To actually have a younger person purchase a McIntosh system and covet it, is what gets us up in the morning.

2. There is not a whole lot of advertising for McIntosh. This has been this way for years. Gordon Gow never believed in it. His belief was to let the product speak for itself...and obviously it has! That said, McIntosh used to use a sales company for years, that would keep a detailed list of all McIntosh owners. When a new product came out, there would be a mass mailing to the current customers. They also made sure that all dealers had all of the literature and info on all products before they came out. McIntosh made sure that every customer in a dealers territory was well informed & the dealer was even more informed. IMHO some of these practices should be considered again. If a manufacturer keeps dealers well informed & up to date...then the enthusiasm remains high....and as anyone in sales knows, it is easier to sell something that you love and have passion for! The McMasters program is one great step forward for the dealer network. No one can walk out of that program, disliking the product in any way.

marketing is much more than advertising, that is for sure. Over the years, McIntosh has kept the most desirable aspects of their products (glass front, meters, power guard, auto former ......) This is all steps of marketing that have worked extremely well. I am sure that there will be more steps. We all know that Mcintosh is here for the long haul. I have been nothing short of impressed with the influence of D&M holdings. They have invested large sums of money to make McIntosh even better....without going mass market in any way. I think that since the MC352 was introduced, McIntosh has raised the bar in audio, and they continue to raise the bar. This CES was the best showing so far for McIntosh (in my opinion) What will the future bring?....more sweet effortless McIntosh sound!
 
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