International market segmentation (International market segmentation) is the concept of market segmentation in the use of international marketing. Its concept is by comparing the domestic and international market for more buyers, a wider distribution. With businesses having limited power, it is usually very complex to meet the needs of worldwide customers.
A market segment is defined as “a group of customers who share a similar set of needs and wants”. In this case its HSBC trying to target potential customers. The first key consideration is the benefits of segmentation. This segmentation uses customers as a point of reference. The firm can then focus on their marketing resources and it gives them competitive advantage by being able to serve more according to customer segments. There are four level of segmentation, first one is preference segments. Some consumers have a very different taste for the things that they want. Consumers are free to prefer HSBC or other banks available in the market. A group of people gathered their preference will show the natural segments.
Second level of segmentation is niche. It is defined as a more narrowly defined customer group seeking a distinctive mix of benefits. HSBC in this case targets consumer niches with distinctive products and services. It is proved by having a pet insurance product, growing at a 125% per year.
Third level is local,which involves local customer groups in trading areas, neighborhoods and even industrial stores . HSBC is actually focusing at serving local markets. They maintain to have local presence in the area with the tagline which is “world’s local bank”. Last level is individual, customer with HSBC bank card, etc will get a ride in the BankCab. The next step is to segment the consumer markets. The fundamentals to consider are geographic, demographic, psychographic and behavioural. Geographic segmentation means dividing market into different geographical units such as nations, states, regions,...
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