Marketing Mix of MasterCard and 7Ps (Updated 2024)

The Marketing mix of MasterCard analyses the 7Ps of MasterCard, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of MasterCard. The revolution in the digital market has opened the pavement for electronic payments. MasterCard Services is one revolutionary company associated with accessible electronic payment opportunities. Initially started as a small banking group, MasterCard is now one of the biggest financial service providers. It began in 1966, i.e., around 46 years back, and today, the history of MasterCard is worth noticing. A group of banks in California started with the Inter-card Association. In the year, 2006 MasterCard was re-renamed as MasterCard Worldwide, and finally, in 2010, MasterCard achieved its present status.

The expansion of the virtual world and increasing use of electronic payment gateways have given a new frame to MasterCard’s marketing mix. With the ever-increasing usage of virtual space, MasterCard faces competition from many local and international financial companies. The strong rival of MasterCard is the Visa bank card association. Besides the rival visa, MasterCard is still struggling with the phenomenal structuring of the conventional mode of payments. MasterCard is still struggling against cultural norms and governmental policies to survive with the best policy.

About MasterCard

• Type: Multinational financial services
• Industry: Payment processing
• Founded: 1966
• Founder: Dee Hock
• Headquarters: New York, United States
• Area served: Worldwide
• Key people: Michael Miebach (Chairman) and Ajay Banga (CEO)
• Number of employees: 216,000

MasterCard Product Strategy

MasterCard holds excellent leverage over multiple services and products. It provides credit, debit, and prepaid cards. Regarding the services of the master card, it does not offer plastic currency but safe and secure payment options. Also, you can purchase the product anywhere with clicks; you do not have to hold money physically. The latest App to support the payments has made MasterCard services more viable and reachable to consumers.

Master, launched in 2008, is the first online debit program worldwide. The revolution in the world beyond cash master cards provides the Plastic currency revolution to people around the globe.

MasterCard is amongst the top 30 innovative companies on the Forbes list. As the future of MasterCard, each punch line focuses on the experience they have provided with the experienced services and delivery to its consumers with top-notch professionals.

MasterCard, a leading global payments & technology company, offers diverse payment solutions and services.

The product mix of MasterCard in 2024 is as follows (Source).

1. Credit Cards: MasterCard offers a variety of credit cards, including standard, gold, platinum, and world elite, catering to different customer segments with varying credit limits, rewards, and benefits.
2. Debit Cards: These cards are linked to the cardholder’s bank account, allowing direct access to transaction funds.
3. Prepaid Cards: MasterCard prepaid cards are a reloadable payment option for those who prefer to pay upfront. They are often used for gifts, travel, and budget management.
4. Business Cards: Designed for businesses of all sizes, these cards offer solutions for expense management, allowing businesses to track and control spending.
5. Contactless Payments: This technology enables fast, secure, and convenient payments with a simple tap of a card or a smartphone at the point of sale.
6. Mobile Payments: MasterCard supports various mobile payment platforms, allowing users to make payments using their smartphones.
7. E-Commerce Solutions: MasterCard provides secure online payment solutions for merchants and customers, facilitating smooth e-commerce transactions.
8. Global Payment Gateway Services: MasterCard offers robust payment processing solutions for merchants globally through acquiring companies like Nets.
9. Cross-Border Services: MasterCard facilitates international transactions, offering solutions for currency conversion and cross-border payments.
10. Data & Analytics Services: Leveraging vast amounts of transaction data, MasterCard offers insights and analytics services to businesses for better decision-making.
11. Security Solutions: Products like MasterCard SecureCode provide added security for online transactions.
12. Loyalty & Rewards Programs: MasterCard partners with various businesses to offer loyalty programs with multiple features and rewards to encourage frequent use of their cards.
13. Financial Inclusion Initiatives: MasterCard also focuses on providing financial services to the unbanked and underbanked populations around the world.

This product mix reflects MasterCard’s focus on innovation and customer-centric solutions in the digital payment landscape. Keep in mind that their offerings may evolve with time and market demands.

MasterCard Pricing Strategy

Being a financial institution, MasterCard holds the Pricing policy in both economical and premium ways. The name MasterCard comes with lots of perks and benefits. MasterCard holders can with ease use the Master card and get good discounts. Providing services to businesses, governments, and organizations, MasterCard has been building up a sound and researched pricing policy for its products and services in recent years. As they have a variety of services for Individuals and Groups, they work and decide based on the Market conditions.

MasterCard’s pricing strategy is a sophisticated blend of market-driven dynamics and value-based pricing designed to lower prices and maintain competitiveness while maximizing revenue. Here’s a breakdown:

1. Value-Based Pricing: MasterCard’s pricing is anchored in the value delivered to stakeholders, including banks, merchants, and cardholders. They assess the perceived value of their services and technologies to determine pricing, ensuring they align with the benefits and conveniences offered.
2. Competitive Analysis: MasterCard continuously analyzes competitive pricing in a market shared with other major players like Visa and American Express. This ensures their rates remain attractive and competitive, adapting to market changes and consumer expectations.
3. Tiered Pricing for Different Segments: MasterCard employs tiered pricing to recognize the diversity in its customer base. This includes varying fee structures for different card types (e.g., standard, gold, platinum) and services catering to a wide range of customers, from everyday users to high-net-worth individuals.
4. Customized Pricing for Partners: MasterCard negotiates individualized pricing agreements with financial institutions and merchants. This flexibility allows them to tailor prices based on transaction volumes, geographical location, and the specific services used, optimizing the value exchange for both parties.
5. Technology and Innovation Premiums: As a technology-driven company, MasterCard often incorporates premiums into its pricing for advanced features like enhanced security measures, contactless payments, and digital wallet services. This reflects their investment in innovation and the additional value these technologies provide users.

MasterCard’s multifaceted pricing strategy sustains its market position and drives growth, balances stakeholder interests, and adapts to evolving market trends in the dynamic financial services sector.

MasterCard Place Strategy

MasterCard virtually locates itself around the globe. The online presence of MasterCard makes it readily available to people across the globe. With online coverage, MasterCard tends to provide services anywhere in the world. Virtual spacing and the need for an hour have made MasterCard a convenient and viable payment option. With technological enhancement, MasterCard frequently develops new products, features, and services for a better consumer experience.

MasterCard has established itself in the virtual world, breaking the conventional notions of poof payments. Nothing, but the revolution of plastic money has done well for the consumers.

MasterCard’s place strategy is as follows:

1. Global Presence: MasterCard operates across a vast global network, offering services in over 210 countries and territories, ensuring widespread acceptance and accessibility.
2. Partnerships with Financial Institutions: They collaborate extensively with banks and financial institutions worldwide to issue cards and facilitate payment services.
3. Digital Platforms Integration: MasterCard leverages digital platforms, including online and mobile banking, to offer seamless digital payment solutions, enhancing user convenience and reach.
4. Investment in Emerging Markets: MasterCard strategically invests in emerging markets to expand its footprint and capture new customer segments, focusing on financial inclusion.
5. Innovation Hubs and Research Centers: The company has established innovation hubs and research centers in key locations to develop advanced payment technologies and stay ahead in the dynamic financial technology landscape.

MasterCard Promotion Strategy

Promotion and marketing form the core of any business group, and considering this part, MasterCard is quite stringent with its promotion policies. It has come up with innovative campaigns to increase electronic payments. MasterCard’s campaign in the U.K. was an innovative and successful marketing strategy. To pay and be paid electronically is the symbolic punch line of the MasterCard advertising campaign, given its customer scope of using plastic cards.

The discounts, promotions, and offers for the exclusive MasterCard users strengthen the promotion strategy. The easy use of MasterCard is an unintentional promotional gimmick for increased use of MasterCard. MasterCard’s marketing experts are dedicated to creating the best customer promotional tactics.

MasterCard’s promotion and marketing strategy is as follows:

1. Strategic Partnerships and Sponsorships: MasterCard capitalizes on strategic partnerships and sponsorships with global events, sports teams, other organizations, and celebrities to increase brand visibility and connect with diverse audiences.
2. Digital Marketing and Social Media Engagement: They leverage digital marketing channels and social media platforms extensively, utilizing targeted advertising, content marketing, and influencer marketing team collaborations to engage current and potential customers.
3. Customer Loyalty Programs: MasterCard offers various loyalty and rewards programs, providing incentives for frequent usage and enhancing customer retention through exclusive offers and benefits.

Some Recent Video ads and Print ads of MasterCard are:

MasterCard People Strategy

When discussing the “People” aspect of the Service Marketing Mix (also known as the 7Ps) for MasterCard, it’s crucial to focus on how the company leverages its workforce, customer service, and overall human resource strategies to deliver value and maintain its brand reputation in the competitive payment solutions market. Here are several key points of the marketing mix that could be highlighted:

1. Customer-Centric Approach: MasterCard emphasizes a customer-centric approach in its operations, ensuring that all staff are trained to focus on customer needs and satisfaction. This involves not just resolving issues but also proactively anticipating customer needs.
2. Global Workforce Diversity: With operations worldwide, MasterCard boasts a diverse workforce. This diversity is a strength, allowing the company to understand and cater to the varied needs of customers across different cultures and regions.
3. Specialized Training: Employees at MasterCard receive specialized training tailored to their roles, whether in technology, finance, customer support, or security. This ensures that they perform their duties well and embody the company’s values in delivering high-quality service.
4. Innovation and Leadership: People at MasterCard are encouraged to innovate and lead in their respective fields. The company supports this through various programs and initiatives to foster staff leadership skills and innovative thinking.
5. Customer Support Teams: MasterCard invests in comprehensive customer support teams accessible 24/7. These teams are crucial in addressing cardholders’ or partner institutions’ issues, ensuring high customer satisfaction and loyalty.
6. Employee Engagement and Satisfaction: MasterCard strongly emphasizes employee engagement and satisfaction, recognizing the importance of a motivated workforce. This includes competitive compensation, benefits, work-life balance initiatives, and opportunities for career growth.
7. Ethical and Professional Standards: The company maintains high ethical and professional standards, expecting all employees to adhere to these principles in their work. This commitment to ethics and professionalism enhances trust among consumers and partners.
8. Community Involvement: MasterCard’s employees are encouraged to engage with and contribute to their communities through various corporate social responsibility (CSR) programs. This not only aids in building a positive brand image but also fosters a sense of purpose and fulfillment among the workforce.

MasterCard Process Strategy

The “Process” element of the Service Marketing Mix for MasterCard involves the systems and procedures that the company employs to deliver its services efficiently and effectively to customers. This aspect is crucial in ensuring customer satisfaction and maintaining operational excellence. Here are several key points regarding MasterCard’s processes:

1. Transaction Processing: MasterCard’s core process involves the secure and rapid processing of payment transactions. This includes authorization, clearing, and settlement processes that ensure transactions are completed smoothly and securely, leveraging advanced technology for real-time processing.
2. Security Measures: MasterCard implements rigorous security processes to protect against fraud and ensure the security of transactions. This includes using encryption, tokenization, and fraud detection algorithms to safeguard customer information and transaction data.
3. Customer Dispute Resolution: MasterCard has established processes for handling disputes and chargebacks, providing a mechanism for customers to report and resolve unauthorized transactions or discrepancies in billing. This process is designed to be customer-friendly, ensuring trust and confidence in the MasterCard brand.
4. Compliance and Regulation: The company follows strict regulatory requirements and industry standards, such as PCI DSS (Payment Card Industry Data Security Standard). Processes are in place to ensure compliance with these standards, protecting both the company and its customers.
5. Partnership Management: MasterCard’s process also includes the management of partnerships with banks, financial institutions, and merchants. This involves contract management, compliance checks, and providing support and technology for partners to offer MasterCard products and services.
6. Innovation and Development: MasterCard’s process is dedicated to innovation and developing new payment technologies and solutions. This includes research and development (R&D) processes, pilot testing, and new features and services rollout.
7. Customer Onboarding: MasterCard has streamlined processes for onboarding new customers, including card activation and setting up online accounts. These processes are designed to be user-friendly, minimizing barriers to entry for new users.
8. Feedback and Improvement: Continuous improvement is key to MasterCard’s process. The company actively seeks input from customers and partners to identify areas for improvement and implement changes to enhance service delivery and customer satisfaction.
9. Digital and Mobile Payment Solutions: The processes around digital and mobile payments, including mobile wallets and contactless payments, are designed for ease of use, security, and speed, catering to the growing demand for convenient payment methods.
10. Global Network Management: Operating a global payment network involves complex processes to manage cross-border transactions, currency conversion, and compliance with international regulations. MasterCard’s processes ensure seamless global transactions for customers and businesses alike.

MasterCard Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix for MasterCard refers to the tangible and intangible elements that customers interact with, which help make the service more tangible and reassure customers of the quality and reliability of the service they use. Physical evidence is crucial in building trust, credibility, and brand image for a company like MasterCard, which operates primarily in the digital and financial services sector. Here are several key points regarding MasterCard’s physical evidence promotional strategy:

1. Brand Logo and Card Design: The MasterCard logo and its credit and debit card design are perhaps the most recognizable forms of physical evidence. The distinctive red and yellow interlocking circles are globally recognized, symbolizing trust, reliability, and global acceptance.
2. Payment Terminals and POS Systems: MasterCard branding on payment terminals and Point of Sale (POS) systems at merchant locations is physical evidence of MasterCard’s wide acceptance and availability for transactions worldwide.
3. Official Website and Mobile App: MasterCard’s official website and mobile App serve as digital physical evidence. They offer a user-friendly interface, providing customers with information, access to services, and secure transaction capabilities.
4. Banking Partner Co-branding: MasterCard often co-brands with banking and financial institution partners. The co-branded cards and marketing materials are physical evidence of these partnerships, enhancing the card’s value proposition.
5. Secure Packaging and Card Delivery: The packaging and delivery method for new and replacement cards provide customers with a sense of security and professionalism, reinforcing the brand’s commitment to quality and customer care.
6. Customer Service Centers: For customers who prefer in-person assistance, MasterCard’s customer service centers or the service centers of its partner banks provide tangible evidence of the company’s commitment to customer support.
7. Transaction Receipts: Physical or digital receipts for transactions made with MasterCard provide proof of purchase and detailed transaction information, offering reassurance and a record for consumers.
8. Promotional Materials and Merchandise: MasterCard uses various promotional materials and merchandise, such as posters, flyers, and branded items at events or stores, to enhance brand visibility and reinforce its presence in the financial services sector.
9. ATM Branding: ATMs that accept MasterCard display the brand’s logo as physical evidence of the network’s extensive reach and accessibility for cash withdrawals and other transactions.
10. Safety and Security Features: Features like the card’s chip and PIN, holograms, and security codes are critical physical evidence of MasterCard’s emphasis on security and fraud prevention.

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