American Express Case Study

AMERICAN EXPRESS CASE STUDY 6

AmericanExpress Case Study

AmericanExpress Case Study

DecisionSituation

Thedecision facing American express is whether to continue with the samepromotional campaigns that are not impacting on its consumers. Thecompany has to establish facts about the effectiveness of all itsmarketing and promotional campaigns in order to get information onthe decision making process. The decision problem facing the companyinvolves an evaluation of the company’s promotional campaigns witha view of redirecting the resources to new campaigns. The companytherefore needs to declare the past promotional campaigns aseffective or ineffective. This will lay a foundation for eithercontinuing with the same style of promotional campaigns or changingthe campaigns.

Associatedfactors in the decision

Oneof the factors that are important in understanding the decisionscenario that the company is facing is the effectiveness of thepromotional campaigns. A promotional campaign is effective if thecompany achieves the intended results through the use of thepromotional campaign. For instance, if the company intends toincrease sales, the promotional campaigns used by the firm shouldhave a clear reflection of its results in the sales figures. Thismeans that the company will evaluate the effectiveness of thecampaign by comparing sales data before and after the campaign(Kotler&amp Armstrong, 2010).Therefore, for American express, it is important to evaluate theeffectiveness by comparing the intended results before the campaignswith the current results.

Anotherfactor is the used to propel the promotional campaigns that thecompany invests its resources on. The use of conventional media suchas television and print is efficient enough to reach the targetedaudience (Kotler&amp Armstrong, 2010).However, the media used needs to be able to relate to thepersonalities used to endorse the cards as a product and the companyas an organization. Finally, the response of the consumers towardsthe celebrities used by the firm is another factor that stronglyunderlies the effectiveness of the promotional campaign. Therefore,the company should explore the response of the consumers and whethersuch celebrities influence their decision processes.

Alternatives

Thecompany has an alternative is for the company to continue with thesame promotional campaigns and use the same type of celebrities, butusing different media. This will see the company explore the use ofradio, promotional videos and partnerships with movie and sportsagencies. This will see movie, music and sporting agencies includethe company’s promotional messages and celebrities in theirproducts and programs. The advantage with this alternative is that itwill maintain the focus of the company and the perspective that theconsumers have of the company. However, using this promotionalalternative risk achieving the same results that the company hasachieved over the last years.

Inaddition, the company has an alternative of using differentcelebrities to present its image while maintaining the samepromotional campaigns and advertisements. Using this alternative willrequire the company to evaluate the celebrities that are loved bypeople and engage them in the promotional campaigns. The advantagewith this alternative is that it will give new faces from newcelebrities that are in different categories of life style. Anotheradvantage is that this alternative will maintain the company’stradition that it has understood and practiced over time.

Anotheralternative is to totally change the style of promotional campaignsby engaging different types and avoiding the use of celebrities toendorse its products. For instance, the company can use modernmethods of promotion and creating advertisements. A good example isthe use of technology such as 3D animations. The advantage with thisalternative is that it will present the company as a modern andresponsive organization. Another advantage with the alternative isthat it will give the company a chance to engage new promotionalstyles and advertising agents. However, this plan may presentchallenges for the firm in adapting to the new promotional styles.Another disadvantage is that this alternative may be more expensivecompare to the traditional endorsements used by the firm.

Recommendation

Themost decision recommended for the company is to totally change thepromotional campaigns it has used over the years and use differentcampaigns. This is because the company has a history with the currentstyle of product promotion, which has not been effective in reachingthe intended targets. In relation to the factor of consumer response,the company needs a promotional program that targets the attention ofconsumers and seeks to influence their decision process. This willmake it economical for the company in relation to the cost of thepromotional campaigns.

Implementation

Theways of implementing this alternative will include a research on theconsumer needs and response to the past promotional methods by thecompany. Secondly, it will include the hiring of professional productand company promotional experts to evaluate the situation andformulate a standard and responsive programs. The alternative alsoincludes incorporation of employees and loyal customers as part ofthe company’s face as well as promotional message. This will paintthe company in a new way as a firm that targets the consumers andevaluates their response on its promotional campaigns.

Reference

Kotler,P., &amp Armstrong, G. (2010). Principlesof Marketing. UpperSaddle River, New York:

PearsonPrentice Hall