Mastercard Marketing Strategy – Marketing Strategy of Mastercard: Global Payments and Tech are serving consumers, businesses, and issuers worldwide since 1966 when they were created by a group of banks called InterBank Card Association (ICA). This was to give head-on competition for BankAmericard-issued Bank of America, which was later acquired by Visa.
Mastercard company was named the World’s most ethical business in 2016 and 2017, and is the 7th largest global change agent, with 50 companies worldwide.
Mastercard At A Glance – Marketing Strategy of Mastercard
Company : Mastercard
CEO: Michael Miebach
Founder: First Interstate Bancorp | Crocker National Bank | Wells Fargo | Bank of California
Year founded: 1966
Headquarters: Mastercard International Global Headquarters, Purchase, New York, U.S.
Annual Revenue: US$15.3 billion
Profit | Net income: US$6.41 billion
Number of employees : 21,000
Products & Services: Credit cards, Payment systems
Mastercard Fun Facts: MasterCard, as we know it today, was initially named, MasterCharge. It was in the year 1979 that the renaming to MasterCard was done.
Marketing Strategy of Mastercard
Mastercard’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Mastercard? Let us discuss.
Segmentation, Targeting, Positioning – Mastercard Marketing Strategy
Mastercard, a global leader in payment and technology-driven companies, uses psychographics as well as demographic variables such as age, gender, marital status, occupation, and education level for segmentation.
To serve different customer segments, it uses a differentiated targeting strategy.
Mastercard is a brand that offers convenience to its customers and merchants. It employs value-based positioning strategies.
Mastercard Mission Statement
“Every day, everywhere, we use our technology and expertise to make payments safe, simple, and smart”
Mastercard Vision Statement
“A World Beyond Cash”
“Transforming the way we live”.
Competitive Advantage – Mastercard Marketing Strategy
Strong product portfolio:
There are many products and services it offers, including consumer credit & charge and debit cards, commercial cards, prepaid services, and cards. It also offers value-added services such as Mastercard advisors, loyalty & rewards, processing, safety & security, and other services.
Tie-ups and strategic acquisitions :
It closely collaborates with more than 25000 financial institutions worldwide, which allowed the company to be featured in more than 1600,000,000 cards globally in December 2016. (Consumer credit-740 mn Cards, Debit & Prepaid-888 mn Cards, and Commercial credit-44.mn Cards).
The brand has been present in more than 220 countries, which helps it to be globally recognized and build a global network that can adapt from its 50-year history.
BCG Matrix – Mastercard Marketing Strategy
It is active in several business segments, including Core products of debit/credit cards, Loyalty and rewards, Mastercard Advisors as well as Safety & Security and Processing.
Its Core product, Loyalty and Rewards, and Mastercard Advisors businesses are stars in the BCG matrix. Other businesses are a question mark in the BCG matrix.
Distribution Strategy – Mastercard Marketing Strategy
Mastercard’s network helps consumers, merchants, wallet providers, and other issues related to digital transactions in-app and online. It works closely with various industries, including IT equipment, telecom, consultants, and Human resources. This allows Mastercard to make its products and services accessible in more than 220 countries by authorizing, clearing, and settling transactions in over 150 countries.
Mastercard’s brand equity is a key part of its marketing strategy. Mastercard was ranked 52nd on the Forbes Magazine list of the World’s Most Valuable brands and 379th on the global 2000 brands list, while Interbrand 2016 ranked it 76. According to the market capitalization method, the brand is valued at $121.3Billion and generates revenue of $10.78 Billion. The brand is second to Visa, the global leader in digital payments.
Competitive Analysis – Mastercard Marketing Strategy
It is competing with companies in the global payments industry, which is dominated by cash and cheques. This accounts for approximately 85% of all world’s retail payments. Other payment options that a company can compete with includes card-based, such as debit or credit cards, prepaid cards, and non-card-based payments such as crypto-currency and contactless payments.
Mastercard is also being dominated by fintech companies, government-initiated digital payment systems, and small players in the payments industry such as payment banks, Visa, and Fintech.
Market Analysis – Mastercard Marketing Strategy
Markets in developed countries face different challenges, such as alternative modes of payment and fintech companies. This is hindering the company’s growth while emerging markets are good for the company. The industry is experiencing a shift in the demand dynamics due to factors such as an increase in per capita income, increased literacy rate, automation within the financial sector, and customers finding it easier to use digital and interrelated products and services such as debit/credit cards, merchant acquiring such as POS/Mobile-Pos machines and travel & leisure.
Customer Analysis – Mastercard Marketing Strategy
Mastercard customers are tech-savvy people looking for digital media for their daily transactions and ease of use. The majority of its customers fall within the 20-40 age range in the B2C segment, while the B2B segment ( business-to-business) includes customers from Government/ private organizations that span borders globally.
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