Marketing
1. The 3 key considerations when segmenting an international market would involve the market segmentation, targeting and positioning.
Firstly, market segmentation involves a group of customers who share similar sets of needs and wants. Market segmentation is consistent with the marketing concept and customer orientation and enables the firm to focus their marketing resources. It also helps the firm to gain competitive advantages using their expertise in the customer base.
There are 4 main levels of segmentation, which include preference segments, niche, local, and lastly the individual.
In preference segmentation, homogenous preferences exist when consumers want the same things, diffused preferences when consumers want different things and clustered preferences when natural segments from groups with shared preferences. In the case of HSBC, it would depend if customers are looking for the services offered by the bank or if they prefer other banks.
Secondly, in the niche segment, the customer group is more narrowly defined as seeking a mix of benefits. This is shown by HSBC’s offering of pet insurance which is relatively not well known but has proven popular with a growth rate of 125% a year.
The third point, which is the local segment, involves marketing programs for local customer groups in trading areas, neighbourhoods, and even industrial stores. Grassroots marketing is also included under this category. Connecting this back with HSBC, which call themselves the “world’s local bank”, and also how the bank focuses on serving the local markets. Additionally, HSBC maintains their local presence and local knowledge of each area they set up in. They also blend their local knowledge with the worldwide operating platform.
Lastly, the individual segment is one where customerisation combines operationally driven mass customization with customized marketing such that consumers are encouraged to design the service according to their needs.
HSBC has
Firstly, market segmentation involves a group of customers who share similar sets of needs and wants. Market segmentation is consistent with the marketing concept and customer orientation and enables the firm to focus their marketing resources. It also helps the firm to gain competitive advantages using their expertise in the customer base.
There are 4 main levels of segmentation, which include preference segments, niche, local, and lastly the individual.
In preference segmentation, homogenous preferences exist when consumers want the same things, diffused preferences when consumers want different things and clustered preferences when natural segments from groups with shared preferences. In the case of HSBC, it would depend if customers are looking for the services offered by the bank or if they prefer other banks.
Secondly, in the niche segment, the customer group is more narrowly defined as seeking a mix of benefits. This is shown by HSBC’s offering of pet insurance which is relatively not well known but has proven popular with a growth rate of 125% a year.
The third point, which is the local segment, involves marketing programs for local customer groups in trading areas, neighbourhoods, and even industrial stores. Grassroots marketing is also included under this category. Connecting this back with HSBC, which call themselves the “world’s local bank”, and also how the bank focuses on serving the local markets. Additionally, HSBC maintains their local presence and local knowledge of each area they set up in. They also blend their local knowledge with the worldwide operating platform.
Lastly, the individual segment is one where customerisation combines operationally driven mass customization with customized marketing such that consumers are encouraged to design the service according to their needs.
HSBC has