American Express offers customers a Cobaltcard,a pre-loaded credit card,to thirteen- to twenty-two-year olds looking to make on-line purchases.While American Express had previously supplied credit cards only to many adults,this was a market that was not being served.The Cobaltcard program is an example of a _____ strategy.

Question

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The Cobaltcard program is an example of a market development strategy because it involves targeting a new market segment (thirteen- to twenty-two-year-olds) with an existing product (credit card services).

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