American Express Market Analysis


AmericanExpress Market Analysis


AmericanExpress Market Analysis

Accordingto Hair, Wolfinbarger, Ortinau, and Bush’s market analysis (2010),consumers need preparation for changes since consumers may end upconfused, thinking that there is a new market entry instead of acampaign change. Therefore, it will lead to a shift in consumerloyalty following attention from competitive advertisement. In such asituation as American Express, the company faces a decision whetherto retain the new campaign or to act quick and come up with another.Uncertainty of the new campaign is the main motivator of the decisiondilemma.

Inunderstanding the decision situation, there are factors to considerthat relate to the target market. Some factors to consider includingpast trends, nature of the customers, and market competitive nature.American Express needs to focus on the three factors to come up witha way forward. The company’s past campaigning trends affect theircurrent decision poses the question, “What kind of campaign trendhas the business maintained over the years?” in American Express’scase, their customers relate to few changes in a long time henceleaving the company with the decision to maintain the newly adoptedcampaign. Secondly, the nature of the customers affects their currentdecision since the customers are the drivers of businesstransactions. In the case, the company’s customers have aconservative nature. The conservative nature of the market leaves thebusiness with the choice of whether to withdraw the new campaign orpush on with it. Finally, American Express will have to consider themarket competition. The market is highly competitive with manysellers. An analysis as such leaves the business with two paths thebusiness can either push on with the campaign and focus on itsawareness, or withdraw to the previous campaign before it is toolate.

Ina highly competitive market, where American Express offers itsservices, there are limited alternatives to the dilemma. The businesscan either withdraw its new campaign and stick to the old one orcarry on with it. However, each decision has its pros and cons. Ifthe company chooses to stick with the new campaign, it will gain somenew customers, portray a diverse attribute to its existing market,have a chance of revising its offers and presenting it in the newcampaign. The business gains these while risking losing its existingcustomers, losing its original company image and creating a marketconfusion. If the company chooses to withdraw its new campaign and goback to the old one, it retains its customers and retains its companyimage while risking having a redundant market image, financial lossfrom the costs of the new and roll back campaigning and creating amarket confusion due to the quick changes.

Froma personal perspective, it is in the company’s favor that theyretain the new campaign to avoid another quick change, which themarket cannot quickly respond. In the same move, the company can tryto adjust some points of the new campaign to match the old one as away of positive consumer deception, which will help its target marketeasily adjust to the quick change (Hair et al. 2010). Advantages ofthis decision are that American Express gains a chance of retainingits image, customers and attracting new customers.

Inthe implementation of the recommendation, the company should stresson upholding the new campaign and maintain its awareness in themarket. The company should also try to merge few aspects of the oldwith the new one. As a result, it will maintain most of the oldcustomers.


Hair,J. F., Wolfinbarger, M. F., Ortinau, D. J., &amp Bush, R. P.(2010).&nbspEssentialsof marketing research.McGraw-Hill/Irwin.