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The assignment has been drafted on the different concepts which are associated and incorporated within the marketing analysis. By choosing the industry of financial services and using HSBC bank the marketing analysis is done. HSBC has been known as the largest organisation of banking and financial service in the global market. Target, segmentation and positioning strategies are discussed on the HSBC bank. Marketing mix along with its components is discussed by using the HSBC banking services. Consumer perception and buying behaviour of the consumers are analysed. The approaches of the HSBC bank in influencing the buyer perception and motivating them in buying are discussed through this report. Banking industry deals within diverse demand and challenging marketing forces. These marketing forces are discussed through making analysis of the marketing environment of the HSBC bank. macro and micro two environment parameters and the factors within them such as customers, public, competitors, social, cultural, technological, environmental, political etc factors are discussed over the HSBC bank.
Target market, segments and positioning
Segmentation of HSBC:
Segmenting is the process which is used for identifying and outlining the diverse groups of the customers who have differences in their needs and wants. It is important to understand the consumer behaviours in-depth. Through market research the market is segmented by HSBC. Certain criteria are associated with the segmentations of the market such as:
1. Demographic segmentation: based on age, life style etc.
2. Psychographic segmentation:personality traits, values and psychology of buying etc.
3. Behavioural segmentation: buyer’s behaviour while purchasing the services based on usages and needs or benefits.
4. Geographic segmentation: population, size of population ratio of gender, state, region etc are considered in this segmentation. (King, Osler, and Rime, 2011)
HSBC has been classified the groups of consumer groups with segmenting the market based on the geographical segmentations. Different state, regions with different countries are considered by HSBC while segmenting the market. The market is segmented over the income, social status and occupation by HSBC. The bank also analyse the customer’s lifestyle such as their luxury purchasing for offering other banking facilities such as credit and debit facilities or internet banking offers or other cards for purchasing any expensive products. Generally HSBC has been approaching the market with higher income status as well as corporate occupational culture. (Koulis, Beneki, Adam, and Botsaris, 2011)
Through open market acquisition the creditability has been acquired by HSBC. The existing customers are targeted by the assessing the personal banking, investments and personal financial services. HSBC integrates its database of the customers to analyse the spending of the cards. The customers of different expensive shopping companies are also targeted by the bank, such as the Westside store customers of a particular age group are targeted for the banking services of HSBC. These customers are approached by credit card facilities and offers by the bank. The corporate high income executives within the developing states or regions are targeted by HSBC for their premium accounts. The regions or countries which are having high growth in the economic market or offering opportunities for the high revenue generation in the financial services are targeted by HSBC. The focus of the HSBC bank is on the developed markets with international connectivity. The main target market of HSBC has been the corporate market or business market. The bank has been offering greater services to the corporate sectors for making transactions of high amounts without financial risks. (Gitsham, 2012)
Competitive advantages over the rivals are gained by HSBC bank by positioning the products and services to the customers. Customer beneficial approaches are adapted by HSBC for successful positioning of the services. Major competitors of HSBC are Citi Bank, Standard Chartered Bank, Axis bank etc. HSBC has been approaching the market through differentiation strategy in order to position itself in the higher place.
Through product differentiation HSBC has been offering better facilities for the credit card holders such as fuel waiver, reward programmes etc. Bonus points are provided to the credit card users on their purchase of any product by using HSBC credit cards. Regarding this, the bank is also providing co-branded card of HSBC Westside. In the service the bank is also offering different beneficial offers to the customers such as email alerts on internet banking, mobile banking, ATM facilities, and excellent support teams to offer help to the customers. (Leonidou, Katsikeas, and Morgan, 2013)
These premium services with higher quality are offered by HSBC bank with higher prices. Within the position map the bank has been placing itself within the high quality and higher price parameters. Through service excellence, strong support facility and local presence the bank is making its position as a strong competitor among the rivals within banking sector. Though the higher price is also making negative willingness among the mass market, but as the bank has been targeting mainly the corporate market it is generating grater revenues from business market position. (Lam, Cheung, and Lau, 2013)
Micro and Macro environmental forces affecting the company
Political factors: as the bank is operating internationally in various countries like China, USA, India Europe etc. the bank has been following different laws and policies in different countries. As HSBC has been abiding these rules and regulations the bank has been effectively doing their business in the financial system. The organisation has also developed protection strategies against the restrictions placed by government.
Economical factors: the stability of the economical factors within the global economic market has been the foreign exchange rate and stock market. Due to the global and commercial banking system the revenue of the bank has been increasing in a rapid manner. In this regard the bank has been approaching the developing countries with encouraging economic markets. Through this strategy the bank has been making its survival approaches in the time of financial crisis. (Panahi, and Pakeniat, 2011)
Social factors:social trends impact over the customer’s purchasing. HSBC faces certain social changes such as the current trend over credit for modern lifestyle purchase, government’s encouragement of small and medium enterprise etc.
Technological: the current global banking system through online transactions, core-banking, internet banking etc are adapted by HSBC. These modernisation also impact over the banking security as the increase of the cyber crime. These are impacting over the banking system and also on customer’s data protection.
Legal factors:legal policies of government of different countries impact over the working of the HSBC. PPI claims and insurance policies are also impacting over the policies of the HSBC bank. (Panahi, and Pakeniat, 2011)
Environmental factors:in the recent context with the recent environmental threats and global warming, the businesses are keener on developing sustainable approaches and becoming ethical organisations. The purposes of HSBC are to decrease the carbon foot print from their operations. They improve the procedures and technology in order to become an ethical responsible organisation. The organisation develop sustainable engagement policy, eco efficiency fund system, waste reduction, energy efficiency approaches, collaboration within supply chain, programs such as green building, paperless banking, etc.
Competitors:competitors like Barclys, Citigroup, RBS etc banks are giving competition in the international market to HSBC. Interest rates, account bonuses, online banking services are ensured by the HSBC to all levels of customers for making proper position in the competitive market.
Publics: the public are the most important micro environment factor for the bank. Publics like investors, customers, media, employees are all related with the bank directly or indirectly. Regarding this HSBC bank tends to provide services to ensure satisfaction of all public area. (Lam, Cheung, and Lau, 2013)
Customers:loyalty programs are designed by the HSBC bank in order to make satisfy the existing customers of the bank. Varieties of different banking services are provided by HSBC bank for their customers. Through wide range of banking services are offered by HSBC in order to approach wide range of people of different financial background. (Salvador, and Casanova, 2012)
Employees: HSBC has been employing trained candidates to make sure about the services. They provide training to their employees. The employees are facilitated with different career opportunities as well as reward system.
Shareholders: the shareholders are the most important part in the banking sector. HSBC has been generating increased revenues for the ensuring satisfaction of the investments of the shareholders. (Uncles, M.D., 2011)
Brief analysis of consumer perceptions and behaviour
Consumer perceptions are the important factors which impact over the buyer’s buying behaviour. In order to influence the buyer’s perception of the services the HSBC has to make ethical approaches in approaching the customers and execution of the strategies. The banking services or products are purchased by buyers by considering long termed perception. This long termed perception over the services lead to the complex buying behaviours of the customers. Through market research HSBC has been observing that the similar social class customers tend to purchase similar services. By providing similar services with different offers than the rival banks HSBC has been attracting the customers towards the bank. (Booth, 2011)
The credit card services and extensive offers on these cards like Gold card is the strategy to influence on the buying behaviours of the customers. HSBC has been alluring the customers who are seeker of credit cards with lower charge. HSBC has been providing CPP insurance on the credit cards to the customers for offering safeguards from the financial risks. In recent account the EMI facilities are also alluring the customers as most of the customers are purchasing products on EMI loan facility in recent days. These services are attracting the buyers towards the bank. The market mix component distribution is also developed by HSBC in this regard for making better approaches in delivering benefits for the customers. (Hopwood, Unerman, J. and Fries, 201)
HSBC is also using personalised promotional approaches for making better impact on the consumer perceptions. Advertising campaigns such as Business connections by HSBC is impacting on the consumer behaviours. (Uncles, M.D., 2011). As HSBC has been focusing over the business orientation the business oriented campaigns are made by them. HSBC campaigns invoke motivation among the consumers. As the bank has consumers of different ages, cultures and gender these promotional strategies are crucial for the organisation. Email and telemarketing is also done marketing executives of HSBC for placing trust and loyalty within the customer relations. HSBC has been evoking the emotions of the customers as by displaying the specific culture of the nations. The HSBC advertising campaigns are all designed to encourage the customer behaviours and make positive imprint on customer’s perspectives.
HSBC has been providing its services under four different categories. These are private banking, retail banking and wealth management, commercial banking and global banking along with investment banking. These services differ from country according to economic conditions and population of the nations.
Personal banking:within this service the bank offers retail banking, personal loans, credit cards with different offers, etc. The bank has been providing ATM services for personal banking purposes. Apart from these services the bank has been also offering services to the NRI citizens of the nation for transferring money in worldwide branches of the bank. (Hopwood, Unerman, J. and Fries, 201).
Corporate banking:HSBC has corporate relations with other foreign banks. Through these relations the bank has been offering different services to the corporate sectors. Bank is also making relations with the domestic banks in Asia countries in order to making the customers more aware of their financial services, corporate deposits, syndications, trade facilities and cash management services.
Financial planning services:both corporate sectors and residential customers are offered these services b y HSBC bank. Insurance services, stock broking services, investment management and opportunities and custodian services are offered through these services.
Corporate relations: the corporate clients are offered payment and collection services. The clients can obtain information about the global market economic conditions from HSBC employees before investing into the business. They can also make financial transactions through this bank in international accounts.
Institutional banking: e-banking services, trade services, cash management are offered by this banking service. (Kumbhar, 2011)
In order to operate successfully it has opened more than six thousand offices in more than eighty five countries. Contents like South America, Europe, Asia, Africa and North Africa are approached by HSBC. Different branches are opened in order to place their existence in every region of the developed countries. The branches are set in such areas or regions where the customers are able to purchase the services of the bank. The bank has employed different well trained employees who are efficient in delivering proper services as per the customer queries and made easy transactions for the customers. (Hoepner, Rammal, and Rezec, 2011)
The bank is also offering the internet banking services to its customers for making the transaction processes easier. The internet services are provided over 24 hours to the customers. This made the bank’s accessibility efficient to the customers. The ATM services are also provided 24 hours to the customers and they are set in such locations that are making benefits for the customers in using these services. Apart from these services the bank is also providing security on the transactions made through online and ATM machines. These are increasing the bank’s loyalty towards the customers.
The bank is also providing transactions services to the corporate customers. They are helping the corporate customers to make large amount of transactions through the bank. The distribution strategies of HSBC have been more concentrated over the corporate customers rather than the consumer market. (Hoepner, Rammal, and Rezec, 2011)
HSBC has been operating in the competitive market. The pricing policy of the bank has been the subject to the changes in the financial market in the financial market economic conditions global market. The pricing policies are also subjected to the changes of the pricing of the rival banks. HSBC has adapted aggressive pricing policy for eliminated competition. They tend to adapt acquisition policy. Value added pricing and acquisition of funds are the two main pricing policy developed by HSBC bank. (Gitsham, 2012) Through value added pricing policy the bank has been offering different offers to various customers and maintain their customer base in worldwide market.
In order to make their pricing policy successful the bank has been attracting the customers who purchase different services and products like cards offered by the bank. These customers after purchasing the services help the bank to generate revenues. Maximization of market share, social consideration, survival strategies, profit maximisation etc are the important factors which are influencing the pricing policy of HSBC. The bank has been offering the current accounts services to the customers for which the bank is not taking any extra charges or any necessitate fees. This approach is attracting the customers towards the bank and the bank is generating revenues while transactions are being made through this account. For attracting the customers who prefer to use the credit card or debit for their purchasing purpose, the bank has been offering minimum charges over the credit and debit card. (Gitsham, 2012)
As HSBC has to operate their business by maintaining the policies of the government, the changes in these policies made by the government impact over the services of HSBC. The load rates, interest rates and other rates are under the control of the government. The pricing differentiation is made on the transaction level as the bank tries to maintain their approach in premium value.
The HSBC bank has been using the extensive promotional strategy for the promotions. The main purpose behind the promotional strategies is to make the customers aware of the banking services and facilities which are provided by the HSBC bank. The tools of advertisements are used by the HSBC for their promotions to make their existence in wide mass market. HSBC uses billboards, newspaper and business magazines for their advertisements. They also place informative commercials on T.V on regular intervals. These made the consumers familiar with the bank and its offered strategies and policies. The bank also made print ads on their offered services, loans, credit and debit cards offers. They also use their websites for their promotional strategy. HSBC sponsors many events like sports, festivals in order made presence in the mass market. Through the sponsorship the bank also targets the business market. It acts as main sponsor in many international events like “AS Monaco” in football, “Jaguar racing Formula One team” etc. It is also main banking partner of Wimbledon Tennis championship. (Cheng, and Yeung, 2010)
Through the promotional tools and techniques the bank is also making its image as the environmental and social supporter. Different promotional campaigns are organised by HSBC in support of social cause, such as sponsoring Great Canadian Geography Challenge and SOS Children. (Uncles, M.D., 2011)
HSBC has been making excellent approaches in different countries through the beneficial offers. The bank is achieving different awards for the excellent performances in banking services. In recent years the organisation has been facing increased competition due to the globalisation and trade liberation. Regarding this I suggest that the bank has to place diverse values within the business strategies to maintain the leading position. The bank may need reappraisal of the financial projecting and careful approach in the budget development. The bank may need a comprehensive contingency strategy in order to overcome their financial disaster. HSBC has to make organised approach by analysing the stock exchange obligations. (Pal, 2011)
The bank has to focus over the transparency and the valuation model and review the adequacy of the reporting system. This will lead the bank to assume the potential risks. The current polices of the government and the changes in the economic market factors impact over the banking services. HSBC needs to follow the government policy and procedures for avoid the financial risks. In recent event the perceptions of the customer of the retail banking industry are getting higher over their transactional needs. (Pal, 2011)The services of HSBC in the retail industry should be re-established by making the transactions processes more available. HSBC must develop their personalised banking apps for offering better services to the consumers of mass market. This app will provide the competitive standards to the bank’s services. Data mining including the cross examination of the tools and techniques using ad hok analysis would be needed by HSBC for determining the integrated management processes and analysing the detailed transactions. In current circumstances the SME or small and medium enterprises are the key players for the banking services careful selection of these businesses partners would help HSBC to generate more revenues. (Pal, 2011)
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