Prof Anupam Narula
FMG 20 B
Q1. Visit the American Express Web site (www.americanexpress.com) to learn more about the different cards that American Express offers. Discuss the target market and positioning strategies for each.
Ans. Personal cards: These cards involve all the individuals who are ready to substitute cash with cards. These cards changed the habit of individuals by providing them with benefits and offers.
Travel cards: Such cards focused on individuals who travel a lot in their day to day life. They get benefits in getting their tickets booked and other benefits.
Gift cards: If a customer is confused on what to gift on some occasions like birthdays, anniversary, marriages etc., such cards help them in this regard.
Corporate cards: Such cards focused on corporate individuals by providing them flexibility in their dealings and other corporate relationships.
Merchant cards: Such cards focus on the small businesses or merchants by giving them flexibility on the repayment system and other benefits for the proper functioning of their business.
Q2. How has American express been able to maintain a competitive advantage throughout the many years of existence?
* American Express is the largest card issuer and leading card service provider in the world with lowest lending rate. * Along with the lowest lending rate, it also provides various other benefits and offers that are directly customized for the betterment of the particular card holder. * They distinguished regular customers from normal ones by providing membership offers and membership cards thus helping them in building long term relationship.
Q3. 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 marketing environment? How?