Marketing and Financial Services

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1. Introduction

- First of all, this report introduces selected financial services organization HSBC background briefly. And talk about element of marketing. After that, the main content of this report consists three parts: segmentation. It also introduces HSBC how to separate segment, basis of segmentation. 2. Market targeting. After segmentation analysis, we can find the target customer accuracy. 3. Market positioning. Following the selection of segment to target, financial institutions must position their products in the mind of customers. Then, we can find the correct position of the market; understand other competitor strength and weakness; finally, we look forward HSBC able to enhance the market share.

2. Background of an organization

- The HSBC Group is one of the world's largest banking and financial services organizations. The Group has around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC provides a comprehensive range of financial services through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Corporate, Investment Banking and Markets; and Private Banking. The HSBC Group Fact Sheet gives an overall view of the Group's global services. Established in Hong Kong in March 1865 and in Shanghai one month later, The Hong Kong and Shanghai Banking Corporation is the founding member of the HSBC Group. It is the Group's flagship in the Asia-Pacific region and the largest bank incorporated in Hong Kong. Fact sheets detailing the Group's operations in Hong Kong and mainland China can be viewed at HSBC Group in the Hong Kong Special Administrative Region and mainland China.

The Elements of Marketing

- The marketing approach in financial services refers basically to four steps: 1. determine customers financial requirements; 2. design new services or update old ones according to the findings; 3. market services (at a profit) to the customers for whom they were researched and designed (this includes pricing, promotion and distribution); and 4. in doing so, satisfy the customers financial needs. The objective of the marketing process is the profitable sale of services that satisfy customer’s financial requirements and needs; that is, it emphasizes the satisfaction of customers needs, at a profit to the financial institution. At the final, competing successfully means doing it on a profitable basis.

3. Market Segmentation

- With the recognition that consumers are different, financial marketers realize that the most effective approach lies in analyzing the different wants and needs of the diverse market segments and then designing a marketing mix that will satisfy these wants and needs. The success of a financial service therefore hinges on identifying the right segments and then targeting its marketing program to reach the selected segments. (What is marketing segmentation?) Market segmentation was one of the first aspects of marketing to be employed in financial services. Traditionally, segmentation tended to be based on demographic and geographic lines. It was soon realized that greater depth in segmentation can be achieved by an additional psychographic dimension based on consumer behavior.

Consumer markets are commonly
further segmented on the basis of:

1. GeographicTypical Market Segments
- RegionHong Kong, Shanghai, London, New York, San Francisco - City sizeUnder 5000; 5000-20000; 20000-40000

customers, etc.
- DensityUrban, suburban, rural
- ClimateHot, cold, sunny, rainy, cloudy

2. DemographicTypical Market Segments
- Incomeunder $10000; $10001-$25000; $25001-$35000; $35001-$50000; over $50000 - AgeUnder 6, 6-12, 13-19, 20-34, 35-49, 50-64, 65 and over - GenderMale, female
- Family size1-2, 3-4, 5-6, 7 and over
- Life cycle stageSingle young, single married, full...
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