American Express offers customers a Cobaltcard,a pre-loaded credit card,to 13- to 22-year-olds looking to make on-line purchases.While American Express had previously supplied credit cards to adults,this younger group was a market that was not being served.The Cobaltcard program is an example of which type of strategy?

Question

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Market development strategy is about targeting a new market segment that was not previously served, which is exactly what American Express is doing by offering the Cobaltcard to 13- to 22-year-olds.

American Express Offers Customers a Cobaltcard,a Pre-Loaded Credit Card,to 13-