The characteristics of the product and services offered by HSBC in a target market Essay Example

product is the banking service.

Target marketing is the act of determining which market segments are the most probable to buy a company's products.

Target marketing offers a significant advantage by allowing accurate assessment and identification of marketing opportunities and unmet needs within a market.

2.) By manipulating the marketing mix, potential customers' needs can be better addressed through finely adjusting market and product appeals.

3.) In order to accomplish its objectives, the company can focus on marketing efforts towards market segments that have the highest potential. The target market requires information about different factors like market characteristics, trends, size and environmental considerations, competition, customers, decision-making processes, and customer factors such as types of decisions made, influencing factors, and timing of decisions.

Achieving success requires the creation of a successful positioning strategy. This involves strategically planning and placing products in the marketplace to differentiate them from competitors in target markets. To effectively compete, it is crucial to develop separate strategies for each targeted segment. The basis of this approach relies on specific assumptions.

Every product and brand possesses both objective and subjective attributes.

When considering what product or brand to buy, potential buyers may consider one or more of these characteristics:

According to www.marketingmasters.co.uk/geoff, customers have their own opinions on how different products or brands are rated for specific attributes. HSBC has implemented its strategy by targeting the global market, starting with Hong Kong. The bank aims to appeal to customers worldwide and values local expertise. To capture the local market, HSBC has hired staff members from the region.

HSBC's position strategy is to have local banks in more countries than any other bank. This enables them to truly understand countries and cultures

by being a part of them. All of HSBC's offices worldwide are staffed by local people, providing valuable insight that helps the company recognize financial opportunities that outsiders might miss. This local knowledge is not only beneficial to their local customers, but also shared throughout the HSBC network, ensuring that all customers can benefit from innovations and ideas. In this way, HSBC's position strategy combines global reach with local expertise.

Situational Influences: The context within which a consumer activity occurs at a particular time and place is formed by temporary environmental factors.

The different factors that influence the environment/situation include:

1. Physical surroundings:

The physical and spatial elements of the environment involved in a consumer's activity determine the physical surroundings. Some of these elements are controllable, while others are beyond control.

Non-spatial factors encompass various elements like music, aroma, lighting, noise, humidity, and weather. Conversely, spatial factors comprise density or crowding, store location, and store displays.

HSBC's physical premises are aesthetically pleasing and well-equipped, boasting well-trained staff, conveniently placed ATM machines, and phone services available at every branch. The layout of the facilities is also thoughtfully organized.

2. Social Surroundings:

Social surroundings refer to the influence of other individuals on an individual consumer's behavior during a consumer activity. The intentions and motivations of an individual are heavily influenced by society. For instance, consider a scenario where someone has planned to watch an adult movie and has brought videos for that purpose. However, their plans are disrupted when their mother unexpectedly visits and stays the night, sleeping in the same room with the TV.

What will the man do? Will he still watch the movies? What happens if his friend comes in place

of his mum? In one scenario, he won't watch the movies, but in another scenario, he will. Thus, an activity is entirely determined by the surroundings.

Activities are also influenced by factors like culture, subculture, social class, reference groups, and family. The social surroundings of HSBC have no relation to anyone in society. However, family and society can affect an individual's decision to have an account at HSBC. For example, if Dad has an account with HSBC, it is likely that his children will too. Likewise, the decision to take a loan from the bank may depend on family matters.

3.Task Definition

The purpose of purchasing products or services can differ based on the intention behind the purchase or consumption behavior. For instance, individuals may shop for various reasons such as buying a birthday present, getting basic groceries like bread and milk, or choosing an appropriate outfit for a job interview. Likewise, computers can serve multiple purposes including personal use at home or professional use at work.

When opening a bank account, the primary goal is usually to save money for security reasons. Business accounts also require the capability to make payments to employees and vendors. Therefore, HSBC should prioritize ensuring the safety of customer deposits in order to attract more clients. Additionally, HSBC should aim to offer more banking facilities compared to its competitors and provide efficient services to maintain competitiveness.

The concept of time and temporal perspective relates to how time influences consumer behavior. For example, consider someone who has a job interview scheduled for next Wednesday and needs to find an appropriate outfit. Additionally, this person will be graduating in two years and will need to find

an interview outfit before then. In the case of banking, an account holder requires access to their account on a daily basis.

5. Antecedent States

Antecedent states refer to features of an individual that are not permanent or enduring characteristics.

Include:

Momentary moods are brief emotional states, such as temporary feelings of depression or excitement. A person's mood may influence their decision to open an account with HSBC, as it can assist the account holder in determining whether to obtain a credit card or not. (Moods are temporary emotional states that are not linked to a specific event or object.)

Momentary conditions encompass temporary physical states, such as fatigue or illness. If someone is in debt, these conditions may prompt them to consider obtaining a credit card to address the debt or even inspire them to borrow a loan from a bank.

Situational influence significantly affects banking services, and today, people are compelled to possess a bank account. Having an account is necessary for receiving payments, obtaining loans, accessing credit facilities, and more. HSBC has recognized this situation as an opportunity and utilizes various strategies to motivate individuals and businesses. They provide interest-free overdraft facilities and loan options to students, invest in businesses, and offer different types of accounts such as current accounts, savings accounts, and fixed deposit accounts to cater to individual needs. Moreover, they also provide credit cards, overdrafts, mortgages, and loans to attract customers.