American Express Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of American Express analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on American Express marketing mix, help the brand succeed in the market. Let us start the American Express Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
American Express Product Strategy:
The product strategy and mix in American Express marketing strategy can be explained as follows:
American Express has a wide diversity of products. They have a huge range of cards. American Express make sure that the customers are happy with their services. These services are the base of the product strategy in the marketing mix of American Express. They have both international and national card services for the customers. They have the options of gift cards, travellers cheque, travel insurance, financial services and they also pays the bills. The company also looks into the financial matters of the clients.
The corporate financing part is one of the star areas of American Express. They take great care to manage the money of their clients and provides B2B payment solutions for the large ended business. American Express not only looks into the money matters but also helps in managing the non-monetary assets of its clients. Having a great relation with their customers is a way of making their product stand out in the competitive market. People are also awarded points for each transaction they make. American Express make sure that this points can be used in the selected countries all over the world.
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American Express Price/Pricing Strategy:
Below is the pricing strategy in American Express marketing strategy:
The American Express brand is one of a kind providing personalized services to the customers. This has a great effect in the minds of the people.
But we know that with great services we have a price to pay. American Express make sure that the prices are worth the services which the people have on offer. This is the base of the pricing strategy in its marketing mix. Most of the people accept American Express’ card. But a few don’t as the price is a bit high with respect to the other competitors. They charges a bit high in comparison with their rivals who are also competing in the market. But mainly it is not as much as it sounds to be. We find that the difference is mainly because of the different business models. The price in this sector is very competitive, but American Express' service is more important to people. This is why we find that the people are preferring the company’s product even though they are slightly over priced. The overpriced scenario is mainly for the customized services they provide.
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American Express Place & Distribution Strategy:
Following is the distribution strategy in the American Express marketing mix:
American Express has no fixed demographic barrier. They have made their presence felt all over the world. We find that the company has transcended its national boundaries. The places it reached is phenomenal. The corners of the world are covered by American Express. The people are using this opportunity to make their life easier. The way the company is looking into the matters of expansion also says a lot about their interest in reaching out to people. The card is powerful and in most cases, is accepted all over the world. We find that the petty issues are being looked after by American Express. They make sure that their customers have no problem with their cards were ever they go.
The help in converting the data to useful information so that they can manage the customer base more efficiently.
American Express Promotion & Advertising Strategy:
The promotional and advertising strategy in the American Express marketing strategy is as follows:
The promotion of American Express is out of the box. They believe in the service they provide to the people. They make sure that their services are trustworthy and secure. This makes sure that the services are apt and they are efficient. Once the company has made its presence felt in the market we find that they are looked forward for the trust and security which they provide to the people. The area where they specialized requires a lot of trust from the people. The point system on using the company’s card is also a bonus for the people. We find that these points are used by the people in certain areas which are really lucrative. This also includes the ticket purchasing of the aeroplanes. It is difficult to identify any particular activities which the company runs. American Express also makes sure that they create personalized experience for the customers. This in a way is efficient way of promoting them through the word of mouth.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of American Express.
Process:
All the activities of American Express is governed internationally from the headquarter. It has to follow its regulations and principles. American Express follow standard formats like any other bank because it has to abide by the rules they set for themselves. Even though the documentation and forms are standardised, the bank has customized approach for every customer based on the customer needs. Customer involvement is ensured through ATMs where the employees are not present and only customers are involved in the process. For simplicity, the functions of the bank are carefully segregated based on their inter-connections. There are also e-outlet where the customers are given the options so that they can perform the needed banking activities with the help of the online services. American Express services are fully automated and thus the customer involvement is increased.
People:
American Express is directly related to the customers. They make sure that the customers all over the world are well connected and the company crater to their needs with utmost importance. Hence, customers, employees, management, workers, everyone contributes to the prosperity and growth of the bank. Every worker and employee adds to the profitability of the bank. The value added directly or indirectly makes American Express grow with time. This is one of the main reasons why the company can make its presence felt all over the world at such a huge level.
Physical Evidence:
American Express has its physical evidence through websites. The Business cards, paperwork, brochures, furnishings are a source of physical evidence. Banks provide tangibles such as diaries, pens to employees. The passbooks, check books also are a medium of physical evidence. Furnishings, financial reports, signage also reduce intangibility of the services. This summarizes the American Express marketing mix.
About American Express:
American Express is a public sector company which has made a huge impact in the financial service industry especially in credit cards, travellers cheques etc. American Express was founded in 1850 in Buffalo and the company has grown leaps and bounds since then. They have diversified their business from finance and insurance to travel also. American Express has made a huge impact in the field of cards be it charged cards, credit cards and travellers cheque. American Express is in the fourth largest card network company in the world, considering the number of cards that is circulated under their name.
The major competition which are faced are from the companies like VISA and Master Card. American Express has its expertise in commercial payment tools and processing payments for its customers.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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