Case Study “HSBC”
1) Discuss three key considerations when segmenting an international market.
2) Draw a perceptual map for the banking industry in Australia.
Question 1
There are few steps in market segmentation, targeting, and positioning.
1.1 Market Segmentation
It identifies bases for segmenting the market and develops segment profiles. For example “dividing up the total market into segments”. A market segment consists of a group of customers who share a similar set of needs and wants. For example, HSBC has done this market segments very well by targeting the right audience.
1.1.A Benefits of Segmentation
a) Consistent with the premises of the marketing concept and customer orientation.
b) It enables the firm to focus its marketing resources
c) It helps the marketing firm gain strong competitive advantages through expertise in serving specific customer segments.
1.1.B Four Levels of Segmentation
a) Preferences segments
Homogeneous preferences actually exist when consumers want the same things. Then, diffused preferences exist when consumers want very different things. As for clustered preferences, it reveals natural segments from groups with shared preferences. It depends on consumers whether they prefer HSBC or other banks.
The Essay on Market Research and Marketing Research
Research is the process of gathering, processing and analyzing information on markets. The scope of such research is limited to the study of markets and does not include studies on the brand or product to be marketed. Market research is a subset of marketing research. Marketing Research is the process of gathering, processing and analyzing information for the purpose of marketing a product. It ...
b) Niche
A niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Next is like sub-segments. For example HSBC targets consumer niches with unique products and services. It found a little-known product area growing at 125 percent a year, pet insurance.
c) Local
Marketing programs for local customer groups in trading areas, neighbourhoods and even industrial stores . It involves grassroots marketing. Refer back to the HSBC case study it has a tagline which is “world’s local bank”. It actually focus on serving local markets. It maintains local presence and local knowledge in each area.
d) Individual
Customerisation combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice. Any customer showing an HSBC bank card, checkbook, or bank statement was able to get a free ride in the BankCab.
1.1.C Segmenting Consumer Markets.
Segmenting consumer markets depends on few elements such as geographic, demographic, psychographic and behavioural.
a) Geographic
It means by dividing market into different geographical units such as nations, states, regions, cities or neighbourhoods. HSBC demonstrated its local knowledge with marketing efforts dedicated to specific locations. In 2005, it set out to prove to jaded New Yorkers that the London-based financial behemoth was a bank with local-knowledge.
b) Demographic segmentation
It means by age and life cycle, life stage, gender, income, generation and different social class. HSBC offered a “smart card” and no frills credit cards to the underserved student segment and targeted high-value customers with special “Premium Centers” bank branches.
c) Psychographic segmentation
It depends on the person itself on primary motivation such an ideals, achievements and self-expression. The four groups with higher resources are innovators, thinkers, achievers and experiencers. However, the four groups with lower resources are believers, strivers, makers, and survivors.
The Term Paper on Financial Reporting HSBC Bank
HSBC bank is a branch of HSBC Holdings plc and has its headquarters based in London. The bank provides a wide range of financial products and services to individuals, governments, non-governmental organizations and companies. It provides banking products and services in the domestic as well as the international market (Gianaris, 2001). HSBC group of banks is one of the organizations of its kind ...
d) Behavioural segmentation
It depends on decision roles such as initiator, influencer, decider, buyer and user. As for behavioural it consists of occasions, benefits, user status, user rate, buyer-readiness, loyalty status and attitude.
1.1.D Major Segmentation Variables for Business Markets
There are few points that need to be considered in major segmentation variables for business markets such as demographic, operating variables, purchasing approaches, situational factors and personal characteristics.
1.2 Target Marketing
It develops measures of market attractiveness and select target segments. For example, “selecting the most profitable segments to focus on”. HSBC target student segment by offering “smart card” and high-value customers with special “Premium Centers” bank branches.
1.2.A Steps in the Segmentation Process
Steps in segmentation process include need-based segmentation, segment identification, segment attractiveness, segment profitability, segment positioning, segment acid test and market mix strategy.
To be useful, market segments must rate favorably on five key criteria which are measurable, substantial, accessible, differentiable and actionable.
1.3 Market Positioning
It develops positioning for target segments and develops a marketing mix for each segment. For example “creating an image or position for the brand with competitors brands”. For example HSBC wants to be known as the “world’s local bank”. This tagline reflects HSBC’s positioning as a globe-spanning financial institution with a unique focus on serving local markets.
1.3.A Choosing a Positioning Strategy
a) Identify a set of possible competitive advantages on which to build a position
b) Choose the right competitive advantages
c) Select an overall positioning strategy
Question 2
The perceptual map for the banking industry in Australia :
HIGH
(Operational Compatibility and Reputation)
The Term Paper on Segmentation and Target Market 2
... of them use effective market segmentation to target specific markets. Effective target marketing requires that marketers, segment the market, by identifying and ... of their supplier having bargaining power is negligible. Positioning Statement Message Generation and Evaluation According to PepsiCo’s ... has a different target audience, than the more expensive Pepsi. PepsiCo may select buyers that have ...
LOW Perceptual map for the Banking Industry in Australia
