AMEX Open Forum: Do it the right way.

When it comes to starting a new business, there are many factors that would make your business operate effectively. Many people may think it is easy to put a business to operate for the first time. But there a couple of steps that business people most follow in order to do things the right way, which is what it is called “The Law”. Someone may have an excellent business idea, optimism and the money require for the startup, but the most important aspect is missing, which is the legal aspect. Company filings and regulations are not the most exciting parts of your startup. Yet they’re critical to the health of your business and personal finances.

First of all, it all depends on your situation or type of business to determine the type of person you have to hire to make all the legal procedures. For example, it could be a tax accountant and attorney. The point is that the person hired needs specific experience in your industry so that you can go a long way to helping you steer clear of trouble. Here’s a list with the different thing you have to keep in mind in order to start a new business correctly.

1.       Pick a name and make sure you are legally permitted to use it.

2.       Register a fictitious business name/DBA (Doing Business As)

3.       Incorporate your Business or form an LLC

4.       Get a federal tax ID number

5.       Learn about employee laws

6.       Obtain the necessary business permits and licenses

7.       File for trademark protection

8.       Open a bank account to start building business credit

           By keeping all of this things on mind, there would be a lot of probabilities that your business will succeed instead of going down in a short period of time just because you didn’t do what you were supposed to do since the beginning.

New Card law may reduce credit

   The CEO of American Express Kenneth Chenault explained that there is a new law that would limit custumers from sweeping their cards. He said this is  a situation of significant importance since it would totally affect the card issuers and reduce the flow of credit to customers. Therefore, the company would probably loss money since the law has more negative effects than positive as explained Kenneth. But, an relieve is that American Express would be hurt less than their competitors since 80 percent of AMEX revenues are generated from fees. The White House said President Barack Obama would sign the bill into law on Friday. Card issuers say the legislation could raise costs and reduce perks, including for creditworthy customers whom the legislation is intended to help.

Ch.7 Business Marketing

     Business, is American Express primary target makert. I figured this out as i was researching for previous blog posts. I noticed that American Express is a business-oriented company somehow, even though  their cards can be used for personal use also. Everytime that AMEX launches a new card for personal comsuption such as Jet Blue Rewards Card, they will later come out with a business card for the same segment (travel), for example, Jet Blue Business Rewards Card. So, American Express is aware that business is everywhere, and that even though a consumer uses their card for personal use, they are still  getting involved with business because the consumer is making a purchase to a retailer or company.

     American Express offers their cards to merchants, providing them an opportunity to develop their business by accepting American Express cards. By doing so, American Express cardholders would probably buy goods and services in those business that accept the AMEX cards. Therefore, they will both have advantage to that strategy. They also use online marketing to engage their target business audience online, which is, OPEN Small Business: a network to provide insights, interactions, and share information with those that are running a small business. For corporations, they provide different corporate card programs, depending on the needs and wants of your business/corporation.

Ch.8 Segmenting & Targeting Markets

  American Express targets businesses in three segments: merchants, corporations, and small businesses. It has developed distinct marketing programs for each segment.

   In the merchants segment, American Express focuses on convincing new merchants to accept the card and on managing relationships with those that already do. For larger corporate customers, the company offers a corporate card program, which includes extensive employee expense and travel management services. It also offers this segment a wide range of asset management, retirement planning, and financial education services.

  Finally, for small business customers, American Express has created the OPEN: Small Business  Network, “the one place that’s all about small business.” Small business cardholders can access the network for everything from account and expense management software to expert small business management advice and  connecting with other small business owners to share ideas and get recommendations.

Gender Segmentation

   Research by American Express revealed that women viewed credit card as a male-specific product. In an effort to expand its cardholder base, American express focused on women as the most promising target market, so they initiated an advertising campaign to attract new female cardholders. The approach succeeded.  Now, almost 50 percent of new American Express cardholders are women, compared to 29 percent when the campaign began.

Ch.11 Developing and Managing Products

   To compete effectively and achieve goals of an organization, the organization must be able to adjust its product mix. Need to understand competition and customer attitudes and preferences.

  When you are developing your product, you are, in essence, developing a marketing program. If you view your product as an extension of your marketing efforts, chances are your business will be far more successful.

   Each day, American Express makes it easier, safer and more rewarding for consumers and businesses to purchase the things they need and for merchants to sell their goods and services. An engine of commerce, American Express provides innovative payment, travel and expense management solutions for individuals and businesses of all sizes. Most of all, they help their customers realize their dreams and aspirations through industry-leading benefits, access to unique experiences, business-building insights, and global customer care. We enable our customers to do and achieve more.

Graph Card Development

American Express Holiday Promotion - 2011

Transact with American Express Foreign Exchange to earn an entry into the draw

Each eligible American Express Foreign Exchange transaction over AU$1,000 made at participating Credit Unions, gives you the chance to WIN a travel voucher worth $5,000.


Simply transact and register any of the following foreign exchange transactions:

• Buy or sell foreign currency in the form of cash, travellers cheques, or load money onto an American Express GlobalTravel Card^
• Plus every foreign currency telegraphic transfer or bank draft gives you a double entry into the draw.

American Express is Big on Small Business

    For American Express cardholders, the credit card deals are online -- or at least start there.
Its Cyber Week promotion: 50 different offers will be available at a 20% discount from partners such as Banana Republic, Sony, Tumi and Cuisinart from Nov. 21 to Nov. 30 through the Membership Rewards website.
    On Nov. 26, American Express will reward customers who shop at small businesses with their American Express cards. Card members will receive a $25 statement credit when they spend $25 or more at a qualifying small business. Cardholders can register their cards for this promotion through the Small Business Saturday Facebook page in early November, says American Express spokeswoman Melanie Backs.

Ch.16 Integrated Marketing Communications

   I have always believed that a well-conceived and executed brand is more than a marketing communications message. It is an internal unifying force throughout the ranks of a company.

  New technologies and new channels have opened up new opportunities for marketers to reach out to customers. Amererican Express Internacional will highlight the key considerations in employing interactive marketing as part of the Integrated Marketing Communications plan. Also, Public Relations is one of the most cost efficient means to reach out to your target customers

  How do you ensure your company speaks with one compelling voice, a voice that is consistent throughout all channels? You can find out from American Express on the foundation for developing an effective marketing and communications strategy, including gaining consumer insight to determine how you should position your brand and differentiate yourself from your competitors.

  American Express has a Travel Related Service Company as well, providing integrated marketing communications; brand identity program for new business launch and re-branding of an existing program including logo creation (to meet corporate guidelines), stationery, legal and technical (conversation rates of 13% to 51%); sales contest; quarterly newsletters; telemarketing training modules in print/CD.

  Marketing facilitates the exchange process and the development of relationships by carefully examining the needs and wants of consumers, developing a product or service that satisfies these needs, offering it at a certain price, making it available through a particular place or channel of distribution, and developing a program of promotion or communication to create awareness and interest.

Advertising

Public Realtions

Sales Promotion

Personal Selling

Ch.10 Product Concepts

     American Express offers credit cards fot those with excellent credit.  It is consider as a consumer prodcut. You use their cards to satisfy a personal need. But, it can also be use for businesses.

Some of the different cards that American Express offer are:

Preferred Rewards Gold Card: The Preffred Rewards Gold Card consumer offer special shopping, entertaintment and travel benefits, and rewards.

Gold Delta SkyMile Credit Card: This one is ideal for those who are frequently traveling and looking for discounts. 

Starwood Preferred  Guest Credit Card which is for customers who are avid travelers both for business and leisure.

The Gold Card from American Express OPEN: that provides business owners with the buying power they need as their business evolve. offering unlimited rewards.

Delta SkyMiles Business Card: Miles can be redeemed for free award tickets with Delta or its SkyTeam partners. The Card also allows them to earn discounts on Delta tickets, and the low annual fee is waived in the first year of Cardmembership.

Ch.18 Sales Promotion & Personal Selling

   

    Sales Promotions are inducements with the purpose of convincing the people to purchase a product or service inmediately.  A problem with promotions is that they sometimes cause consumers to focus more on the promotion than the product. In fact, sometimes consumers are not at all loyal to the product but are attracted to the coupon, gift, or rebate.

    The main sales promotion strategy used by American Express are the Reward Points. You can get rewarded with the things you want when you buy the things you need anytime you use the American Express cards. So, these kind of offers are the ones that motivate the consumers to use the American Express cards.

Ch.17 Advertising & Public Relations

    American express uses social networks such as, Facebook, Twitter, LinkedIn, and many other online resources to advertise its service, offers and to make interactions with customes and affiliates as well to gain support.

    American Express was one of the earliest users of cause marketing, to great success. A 1983 promotion advertised that for each purchase made with an American Express Card, American Express would contribute one penny to the renovation of the Statue of Liberty.

AMEX COMMERCIAL

   

  

This is a Beyonce Ad promoting American Express