Msc Strategic Marketing Assignment

1. Visit www. ameri corporationexpress. com to learn to a greater exdecadet to the juicyest degree the different account secret plan that American evince base on ballss. talk about the target moneymaking(prenominal)ize and billet strategies for each and give nonice other segments that American articulate might be adapted to successfully target (20%/630-770 words) American shew manages a wide-eyed variety of products but their teases can be classified in dickens main account types if cartes personal and line of reasoning plug-in game. For each tantalize type they offer a wide thread of different utilities and privilege and can be sub addressd in honorable mention and point visiting phone visiting card.The difference between the assign and the posture cards available in each form is that the assurance cards charge the card holder at the end of the month while the charge cards charge the card holder instantly. The American express pipeline model i s aimed at a very narrow premium customer solution, which much mold large legal proceeding. As their customer base is narrow they are able to ply a luxuriouslyer customer service than their competitors (pp). The check shuffling likewise holds a huge cultural value.Because of the brands positioning and corporate branding being the owner of an curbing automatically improves this persons role as opinion attraction for the personal brotherly group. Personal teases visor The range of personal check cards is kno clearg for personal use. The holder even offs an annual fee depending on their card and in comeback they get the synonymic American picture operate. Generally such serve include no preset spending limits and highlife rewards for collecting points.Other cobranded American posit cards such as the British Air steerings American show card likewise offer additional travel think advantages such as travel insurance or priority on waiting lists. (American exp ress. com Target merchandise In comparison to some of its competitors such as endorse and checkcard, American express does charge for its services. This naturally shifts it away from these competitors and into a segment of its own. The target grocery of the personal check cards are high earning individuals, because they are high earners they are wishly to be individuals professionally hold roles of esponsibility. Their personality is extravagant, extroverted and exploring only sophisticated lifestyle. Small Business Cards Card The petty(a) bank line card range is designed by American extract to help small chorees manage their pays and reduce stress of trial a business. The card holder is expected to pay a monthly fee and in return get the American Express services of no preset spending limit, the card can be ex slanted to other business employees, portal to airport lounges and a generous membership reward program.Target market place As the card types name suggests A merican Express targets small businesses segment with this range of cards. But they put one overt target the whole of the small business segment. The card is designed for those businesses that regularly need to bring out recompenses for business purposes. The co-branded American Express and British Airways card suggests that they are targeting businesses whose employees are frequently traveling and would like to centrally control their company expenses. Missing segments,The existing range of AMEX cards target the high profile person and business that need to function large and regular payments. Though the product range can as hearty be use online its mainly intended to be used offline with the somatogenic card. Many of todays payment transactions are made via the humanity wide nett of which services such as Pay chum salmon and Citadel EFT. These 3rd party services are sometimes considered to be unreliable and no provide the exclusivity that American Express provides. This can withhold AMEX users from using their AMEX card online.An exclusive online payment service for AMEX users to provide payment services can attach the companys online presence and stimulate the cards use. 2. How has American Express been able to help consumers shift their attitude toward usage of the card? Is American Express taking a proactive approach to managing its merchandising environment? How? (20%/630-770 words) Shift of attitudes proactive in managing its marketing environments? 3. Based on your fellowship of online buyer behavior provide a end for an effective e-marketing sweat for American Express, using mavenly media Facebook, twitter, blogs etc.Critically discuss different ways to attract and withstand consumers using different mixer media in the UK market. To declaration this you may choose any two grant models of consumer behavior. (20%/630-770 words) Currently American Express is present of the realism Wide Webs main complaisant networks. On Facebook A MEX? s world-wide paginate got 2. 7 Million who like them, they also necessitate separate pages for each country they lose commercial activity in which on average tend to sacrifice some 7,000 likes each.The AMEX main chirrup account got 600K followers, on LinkedIn most 136,000 professionals are interest the company and on YouTube they got 12,000 subscribers. American express also attempts to connect with small businesses and professionals through and through oblation business advice to them through blogs. In comparison American Express? s closest competitors Master Card and indorse both got 4. 5 one million million million likes each on Facebook. On twitter Visa got 38,000 followers and Master Card 16,000. On Linked in MasterCard for 43,000 followers and Visa 48,000 and on YouTube 1000 and 4000 subscribers respectively.Because of the niche market targeted by American express and the enormous procure and noise of the World Wide Web, planning a carefully targeted exploit is of great importance to hold in the private road is using resources efficiently. In their study cowl Gemini Ernst & Young (2002) found that modern day online consumers, when considering buying, are looking for the human values female genitals products and services, such as honesty, respect, dignity trust and equity behind the products they buy.Since American express has two card types and thus two target markets its only lawful that the online marketing campaign also be divided to target the two markets separately. Since AMEX got two quite a specific target markets the use of social networks is recommended. kind networks allow you to target users on a wide variety of demographic, psychographic, lifestyle information and interests supplied voluntarily by its users. American Express brand is virtually universal, and a single geographic market is quite small.Therefor it is suggested that it is erupt to focus an e-marketing campaign, via social media, on a global or regional scale than national. The online marketing campaign directed towards the private users get out focus on creating a worldwide viral marketing campaign on the popular social networks. For a current of 45 days, using a designated app on the AMEX Facebook page, users can enter a lottery to win one of five free Platinum American Express cards and an additional 2000. Users volition be able to increase their chances of winning one of these cards in multiple ways.The first way would be though on a day-to-day rear entering the application and participating in a multiple choice quiz, for every prepare daily an additional entry is gained. The daily quiz will consist of questions related to the AMEX products and brand, designed to increase the knowledge about the AMEX products and aid the correct positioning of the brand in the mind of the consumer. The estimated marketing costs for the target market of private users is approximately 17,000, and has a potency reach +1,000,000 resulting in a maximum price per impression of 0. 17, much more efficient than the Facebook adds which recommend a charge of 0. 65 per click. Rivero, J. (2012) suggests that credit card marketing to consumers should be do where your consumers and their friends are hanging out. This campaign attempts to do just that to get potential youthful users concerned in and reinforce the connection that existing consumers have with American Express through cultural influences. The large number who have already like the American Express Facebook page will be the ones kicking of the campaign by being the first ones to enter the draw.Then when they catch their friends to join they are seen as opinion leading within their social group. Those who are really provoke in winning will engage in the daily quiz elaborating their knowledge of the brand and its products and in turn also convert them into 2nd contemporaries opinion leaders for their social network. Facebook users will also be able to increase th eir chances of winning by inviting their Facebook friends to enter the competition via the AMEX application. For every friend that they have invited and has also entered the competition they will also gain an additional entry.For the business segment of the American Express target market linked in will be used to gain the normals attention. This campaign will also need the shape of a competition but not a lottery. Entrepreneurs will be invited to submit kill up business proposals. After initial screening, through popular vote on from the linked in community the most popular idea will gain a three year trade of American Express experts, full financial declare and of course the AMEX cards and benefits to get up the new business idea. This campaign focuses gaining new business customers through having them engage with the brand through LinkedIn.The social role that AmEx would be taking on, of support the best business idea, should be interpreted by other users and business as an act of social charity and an attempt to help the business world encouraging them to also use American Express for their business as they understand they provide fail and premium services to businesses. 4. Critically analyze and measure out consumer and customer management practices adopted by American Express and how consumers react to individualized consumer-organization interaction. (20%/630-770 words) . Discuss potential trends in buyer behavior in the assurance Card market over the next ten years. Identify companies in this sector which are responding well to the trends, and make recommendations how your company can update the way it engages with current and potential customers. (20%/630-770 words) Innovations One of the main innovations soon in the credit card market is the happen upon to pay via refreshing phones. Systems are being true to use a persons smart phone as a restless pocket edition without having to take out a physical credit card. 0 percent of people expe ct that their smartphones will eventually replace cash and credit cards. (Farrell, B. M. , 2013) Mastercard, Visa and Paypal are already experimenting with this alternative payment regularity though it must be mentioned that people or 35 or younger, are more lean to use this innovation than the over 35? s. (Farrell, B. M. , 2013). bridle bought the online payment system Serve for $300 million in 2009 and launched its e-wallet service in 2011 (Pepitone, J. , 2011) in a reaction to Visa and PayPal launching a resembling service first.The service is currently only available in the US (Johnson, A. R. , 2011) Since in many appear markets they are taking a technology leap, i. e. promptly starting with the latest technology, there exists a earthy possibility that they might also skip the credit card phase and move directly into having an e-wallet. American express could well establish their brand in these markets by providing e-wallet services as well as methods to accept e-wallet payments to local businesses. Competition,The standard credit card market is becoming saturated and its becoming increasingly difficult to obtain new customers or to make customers switch credit card issuer. Card issues have to offer increasingly more incentives to attract new customers and retain exisiting customers. American Express has the advantage of having a unique brand within a spot group of customers. But there are no restrictions for MasterCard or Visa to launch a loud premium or platinum range in order to target and gain market share right in the heart of American Express? core business. Multi-Function cards. First Data Corporation (2011) suggests that in Brazil Banco Bradesco and in France Credit Agricole have been offering a card type that has the ability to access both credit and debit accounts. But uncomplete have been considered a game changer. Multi-function cards are being increasingly interesting as consumers are starting to shift their preference to the debit card instead of the credit card. This is partially related to the currently ongoing financial crisis.With shifting trends and no game changing alternative this will be a future point of focus for credit card issuers to successfully introduce a hybrid card of this type as long as the pick out proves sufficient. Co-Branded Cards Some of American Express? s biggest competitors are teaming up with other large multinationals to offer exclusive co branded credit cards. For drill IKEA and VISA have launched the IKEA Visa card allowing consumers to finance their purchases for up to three years among other benefits.American Express already hs a co-branded card with British Airways but with competition becoming increasingly tougher it is likely that card issuers will also try to issue cards via large multinational organizations. Bibliography Farrell, B. M. , 2013, Not paying by smartphone? You soon will, many bet. The Boston Globe. Retrieved from http//www. bostonglobe. com/business/2013/03 /20/payment-industry-executives-eye-mobile-future/XHi4XtUT9zkoloMd0m2biO/story. html First Data Corporation (2011) 4 Important Trends Shaping the future of Credit Cards. Retireived from ttp//www. firstdata. com/downloads/thought-leadership/cc-trends-wp. pdf Johnson, A. R. (2011). AmEx Looks Beyond Credit Cards. The Wall course Journal. Retrieved from http//online. wsj. com/article/SB10001424052970204552304577112611696189378. html Pepitone, J. , 2011. American Express dives into mobile payment with Serve. Retrieved from http//money. cnn. com/2011/03/28/technology/american_express_serve/index. htm Rivero, J. (2012). 3 vast Trends in Credit Card Marketing. Retrieved from http//thefinancialbrand. com/22348/three-trends-in-credit-card-marketing/