1. Discuss three key considerations when segmenting an international market. A market segment consists of a group of customers who share a similar set of needs and wants. When segmenting an international market, there are four levels of segmentation a) Preferences segments
First, homogeneous preferences exist when consumers want the same things. Second, diffused preferences exist when consumers want very different things. Third, clustered preferences reveal natural segments from groups with shared preferences. In the case, HSBC not only works hard to maintain a local presence and local knowledge in each area to remain close to its customers, but also demonstrates its local knowledge with marketing efforts dedicated to specific locations. In addition to that, HSBC also provides ads for the “world local bank” to depicted different cultures. In this way, HSBC completed diffused preferences segments. b) Niche
A niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Next is like sub-segments. In this case, HSBC targets consumer niches with unique products and services. For example, it sets up pet insurance to its depositors and offer “smart card” in Malaysia. Through that, HSBC successfully targeted the consumers who want to seek distinctive benefits. c) Local
Local means marketing programs for local customer groups in trading areas, neighborhoods and even industrial stores. It involves grassroots marketing. In this case, HSBC undertook a two-part “Support Hong Kong” campaign to revitalize the local economy in Hong Kong including delay interest payments and offer discounts for the certain customers. As a result, HSBC targeted the local customers by this mean. d) Individual
Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice. In the case, HSBC offered a “smart card” and no-frills credit cards to the...
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