The MasterCard Brand - Paper Example

Mini-Case: MasterCard and Paypass

What other segments do you think MasterCard should target? Why?

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The world of technology is forever evolving, and so any business operating in the technology world should evolve too. MasterCard must focus its efforts in the future on segments like mobile money and Internet banking. Mobile money is the new frontier in business payments, and organizations are scrambling to have a share of the pie. It allows people to control their transactions from their phones, which is an excellent concept of financial freedom. Therefore, as a brand that has been in the money business for a long, MasterCard has a chance of riding on that glory to make it in the mobile money segment. It is an area that is complimenting the traditional credit and debit card approaches in a great way. Other than the technology-based segments, the business should try and explore the less-utilized developing markets. They have huge potential that could help MasterCard grow in leaps and bounds.

How do you currently perceive the MasterCard brand?

MasterCard is a global force in financial operations. Together with Visa, they are widely popular and rake in huge profits due to their popularity. In my view, MasterCard is some of the market leaders in the industry. The business has a huge market appeal. With over 230 million cardholde3rs across 210 countries and 150 currencies, MasterCard is a big player in the international scene. Undoubtedly, I perceive the company in high regard and respect for maintaining a huge appeal in a highly competitive sector. The fact that one can use the card in so many territories appeals to me greatly. The wide range of services that one can access using the card is also impressive.

Do you think such an advertising campaign will alter people’s perceptions of the MasterCard brand?

Sometimes advertising works to the advantage of businesses, and at times to their disadvantage. In this case of MasterCard should gain from the campaign. People are always looking for information, and this campaign by MasterCard is an informati8ve one. They are bringing a new product to the market. In case of changes in perception, people should place a higher value on the company and get more convinced about the firm’s progressive agenda. Every time, people are looking for better, easier, more convenient, and secure ways of making payment. If the campaign convinces people that they are getting the positives from MasterCard, their liking for their services cannot dwindle. They will accept the new service from their favourite financial services company.

Mini-Case: The Hong Kong Airport Express

How would you classify this service with reference to Heaney’s categories of service product innovations?

Heaney’s categories of product innovations are; Incremental, Disruptive, Architectural, and Radical. The Hong Kong Airport Express can be defined as disruptive innovation. Despite the fact that people have been going to the Hong Kong International Airport for years, checking in and utilising the eateries in different places, all that processes are being merged and eased using the airport express railway line. The bus, the taxis, and other modes of travel to the airport are still in existence. Still, they cannot boast the same influence and control they had in the sector of shuttling people to and from the airport. Therefore, the Airport Express has disrupted the flow of the transport business on that route. It has doen it without necessarily taking the others out of business.

Define the core, facilitating, and supporting services.

The Hong Kong Airport Express core service is serving the airport as a dedicated railway line for the route to and from the airport at any time of the day. It is a quick alternative to the existing network transport system. There are also facilitating services, such as passenger and luggage check-in at any of the two train stations. They help ease the load of passengers at the airport. Other facilitating services include free porter service, shuttle services between the airport and Kowloon, as well as shuttling passengers to the major hotels. Support services include eateries, shops, and information services for tourists at the stations.

What role might technology play in delivering these services?

A major role of technology is clearing and confirming check-ins, to ensure that a passenger is not forced top check-in again at the airport. Technology should also assist with scheduling the trips to and from the airport. It should also help in confirming the availability of the services. Using technology, a passenger should have the ability to make an order in advance at any of the eateries or shops and find it ready at the time they get to the station. By using technology, everything should be easy, including the provision of tourist information at any of the stations.

In maintaining this service, what are important managerial considerations with marketing implications?

The management must ensure efficiency in the shuttle service. No passenger should miss a flight because the service has downtime challenges that had not been anticipated. Regular service and maintenance should ensure that this is achieved. The service should also consider online booking to ensure that there is no congestion at any given time. While marketing, the service is likely to be dubbed the most efficient way to the airport. However, the people may lose trust if there are delays and missed flights forced by the delays emanating from the Hong Kong Airport Express.

Mini-Case: Myer Expects Tenfold Increase in Online Sales

Log onto Myer online (www.myer.com.au) and evaluate the site in terms of general appeal, ease of navigation, visual appeal, range of merchandise, device ambiguity, and any other criteria you might like to employ.

The website has an impressive landing page, but with a very long scroll-down. The transition between tabs and pages is easy, and the clarity of their products posted is not in doubt. The description of products is precise, across all categories. The platform has a wide range of categories, from fashion to electronics, beauty, toys, and home appliances. The system is not difficult to use, and it is quite similar to other online sellers that I have come across. However, they seem to concentrate majorly on fashion products for all people. In terms of the graphic user interface appeal, the site offers a great one. However, they should consider the size of their images as they fill up the screen with very few products on display. This would increase the visual appeal of the platform.

Do you think Myer can effectively compete with online sites in Hong Kong that will distribute cheaper items with free shipping, large online retailers such as Amazon.com, international online competitors who now ship for free to Australia (such as ASOS.co.uk) and similar online competitors? Make sure you explain your reasons in detail.

In my view, it will take time for Myer to play in the league of companies like Amazon.com and Alibaba. It is still relatively new in the online space and has to push and shove to win its share in a market that already has dominant forces. To effectively sell online, a business must build consumer trust. If Myer succeeds in building consumer trust across Australia, it may end up being a market leader in that segment. However, the business must appreciate the fact that is has a long way to go. It is not easy to gain traction in the online industry, and the history of companies like Alibaba and Amazon tell a great deal of the stories. Therefore, Myer must be ready to journey amidst the challenges and problems until such a time that it gets to the top. Its business model may be different from the likes of Alibaba and Amazon since it has been in existence in the form of physical stores over the years. They should focus on encouraging their customers to switch to online shopping. If they do not disappoint their existing clout, they will have a strong foundation to compete with the likes of ASOS.co.uk for the Australian online market.

Mini-case: Pricing tables with a view

Compare the functional and strategic roles of the new pricing approach that John is considering.

John is trying to use the on-demand pricing strategy, to maximise the income from the window tables, and probably get bookings for the other tables. This is a revenue maximisation and profit increment strategy. At the current state of affairs, he is definitely likely to get optimum bookings for the window tables, on the guarantee of the maximum value for the customers. As the manager of the restaurant, John is exercising his functional role of making critical decisions, and re-organising the way the restaurant operates. His strategic goals must be supported by the functional operations of the restaurant. This alignment shall help in ensuring that John reaps maximum benefits from his new approach.

What underpins the assumption that some of his clientele will be willing to pay the increased fees?

The assumption emanates from the fact that the window tables have always attracted high demand. For any good service, consumers are willing to pay an extra penny and realise the value for money they pay. High demand translates into competition for the little available, and people are willing to step up a bit to won the bid for their own comfort. Therefore, the presumption by John to utilise the power of demand and supply is not farfetched. Market forces show that whenever demand is higher than supply, prices are pushed up by that imbalance. Supply and demand must find an equilibrium point at which the market prices are fixed (Roozbehani et al., 2010). Therefore, John increasing the prices of window tables is in line with that concept of the market forces of demand and supply. He should not raise the price to such a point that the clients will not afford it anymore. That would mean that now supply has exceeded the demand for the window tables.

What are important price-setting considerations in the case of a business such as this, and why?

Lovelock et al. (2015) posit that price determination in a service industry must meet a few parameters. The price setter must consider beyond the costs and the profit margins for the business person. The ability of the customers to pay and the value extracted from the offering are prime considerations. John must also not forget to consider the remaining ethical in determining the new price. Any unethical behaviour can see the customers bolt out in favour of another restaurant. Before making the price increment, John should conduct a little survey among the patrons, and understand how many are willing to pay extra for such window tables. The survey should target those who usually miss out so that John can make an informed decision. The price increase does not have to happen with a similar approach to what John usually does; maybe, he can invoke something like a priority reservation fee. For those who pay that fee, they will get the first priority for the window tables at any time. They will be informed of their availability and expressions by other customers to book. This way, he can ensure that no disgruntlement occurs among customers.