Attempt all the questions.
Section-A
Question1) What are the main steps in consumer decision making process?
Question2) Describe how and why organizations seek to target a specific audience for their product or services
Question3) What are the major tasks involved in Marketing Planning and how does Marketing Research helps in achieving it?
Question4) What do you understand by marketing mix and give your comments on the changing marketing scenario in post-liberalization era?
Section-B
Case Study :
HSBC is known as the “world’s local bank.” Originally called Hong Kong and Shanghai Banking Corporation Limited, HSBC was established in 1865 to finance the growing trade between China and United Kingdom, HSBC is now the second – largest bank in the world, serving 100 million customers through 9,500 branches in 79 countries. The company is organized by business line (personal financial services; consumer finance; commercial banking; corporate investment banking and markets; private banking), as well as by geographic segment (Asia-Pacific, U.K/Eurozone, North America/NAFTA, South America, Middle East.)
Despite operating in 79 various countries, the bank works hard to maintain the local feel and local knowledge in each area. HSBC’s fundamental operating strategy is to remain close to its customers. As HSBC’s Chairman Sir John Nond said in November 2003, “Our position as the world’s local bank enables us to approach each country uniquely, blending local knowledge with the world-wide operating platform”.
For instance, consider HSBC’s local marketing efforts in New York City. To prove to jaded New Yorkers that London-based financial behemoth was “the world’s local bank,” HSBC held a “New York City’s Most knowledgeable Cabbie” contest. The winning cabbie gets paid to drive full-time for HSBC for the year, and HSBC customers win, too. Any customer showing an HSBC bankcard, checkbook, or bank statement can get a free ride in the HSBC –branded Bankcab. The campaign demonstrates HSBC’s local knowledge. “In order to make New Yorkers believe you’re local, you have to act local,” said Renegade marketing Group’s CEO Drew Neisser.
Across world in Hong Kong, HSBC undertook a different campaign. In the region hit hard by Severe Acute Respiratory Syndrome (SARS) outbreak, HSBC launched a program to revitalize the local economy. HSBC’s plowed back interest payments” to restaurants, and travel agencies). The program eased its customer’s financial burden. Bank also promoted Hong Kong’s commercial sector when stopping and dining out, to help businesses affected by downturn. More than 1,500 local merchants participated in the promotion.
Additionally to local marketing, HSBC does niche marketing. For instance, it found the little-known product area that was growing at 125 percent a year; pet insurance. In December 2003 it announced that it would distribute nationwide pet insurance through its HSBC Insurance agency, making insurance available to its depositors.
HSBC also segments demographically. In the United States, the bank would target the immigrant population, particularly Hispanics, now that it has acquired Bital in Mexico, where many migrants to United States deposit money.
Overall, bank has been consciously pulling together its worldwide businesses under the single global brand with the “world’s local bank” slogan. The aim is to link its international size with close relationships in each of countries in which it operates. The company spends $600 million annually on global marketing and would likely consolidate and use fewer ad agencies. HSBC would decide who gets account by giving each agency a “brand-strategy exercise. “ Agencies would be vying for the account by improving on HSBC’s number 37 global brand ranking.
Questions:
Question1) What have been the major success factors for HSBC?
Question2) Where is HSBC vulnerable? What must it watch out for?
Question3) What recommendations will you make to senior marketing executives going forward? What must they be sure to do with its marketing?