Case Study “HSBC”
1) Discuss three key considerations when segmenting an international market.
2) Draw a perceptual map for the banking industry in Australia.
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.
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.
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.
Customerisation combines operationally driven mass customization.