Principles and Practices of Marketing

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Principles and Practices
of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ONE......................................................................................................................................1
Introduction of company..............................................................................................................1
Background related to company's marketing...............................................................................2
Promotional mix used by Company.............................................................................................3
TASK TWO.....................................................................................................................................6
AIDA ...........................................................................................................................................6
Push and Pull strategies ..............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is defined to the concept that generates interests among potential clients
addition to customers in commodities and services which are offered by an enterprise. Marketing
practices are those strategies and working that are performed to influence customers to make
purchase decisions. Some of marketing practices involves setting attainable objectives, defining
target market, establishing clear brand identity, using marketing strategies, preparing campaigns
and many more (Baker, 2016). Similarly, principles of marketing are the essentials of marketing
which are mandatory to be used by a business for effective promotional strategy. To understand
about practices as well as principles of marketing, HSBC Bank is chosen which is UK based
bank that provides investment, financial and many other services to the population living in the
nation and its surrounding countries. The head quarters of the bank is located in London, United
Kingdom since 1865. The report involves two tasks in which Task One discusses about the
company and its promotional mix policies. On context to Task Two, it is all about two marketing
theories and the ways they are effectively implemented in the company.
TASK ONE
Introduction of company
HongKong and Shanghai banking Corporation is well popular as HSBC Bank which is
established at London, UK. It as born as local bank in order to serve international needs and
requirements. The main doors of the institution are opened for businesses within Hong Kong so
to provide finance for trading purposes. HSBC Bank believes on performing actions with
courageous integrity. It is multinational banking institution which provides variants of
investment along with financial services across the nation. It is leading and largest bank in entire
Europe having total assets more than US $ 2.715 trillion. The bank has international networks
which comprises approx 3900 offices in different countries addition to territories across North
America, Asia, South America, Africa, Oceania and so on. Its facilities ranges from high street
personal finance, commercial borrowings to investment banking, consumer finance, corporate
and private banking. Moreover, it also operates 1800 sites within entire UK. Considering its
business groups, it involves retail banking along with wealth management, commercial banking,
international private banking and Global investment banking. It is dependable to deliver
commitments, values that are trustworthiness, opens distinct ideas and cultures, connects with
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communities, customers and hence forth. The institution also has dual primary listing in London
Stock Exchange addition to Hong Kong Stock Exchange. Along with this, it is the banking
company which delivers wide opportunities to small enterprises along with large companies in
terms of investment and facilitates services related to loans and advisory.
Background related to company's marketing
HSBC Bank has more than 150 years of experience to provide financial needs and
investment opportunities to customers at international level. In context to its marketing
background, earlier limited strategies was opted by the managers of bank for promotional
aspects. In initial years of business setup, major focus was on understanding customer
requirements for the finance and other aspects so that valuable services are delivered to them that
satisfies them the most. For this context, HSBS banks has framed effective marketing plan in
which it devised objectives and strategies so that maximum customers are attracted towards the
institution (De Mooij, 2018). The main marketing strategy that was used by the workforce of the
financial institution was word of mouth. The strategy involves procedures that actively
influences as well as encourages audiences to get engaged with the company and use its offered
services. Same was with the HSBC bank, the marketing team used to provide the information in
well elaborated and demonstrated about the services of enterprise that increased brand awareness
among targetted population and improves its direct sales.
In earlier times, financial institution such as HSBC Bank emphasised on adopting
customer outreach strategy in which it reaches to customers for fulfilling their current needs for
the finance and investment. In this regards, it made a programme of “Customer Outreach
initiative” that covered more than 100 local cities of UK for providing loans related to education,
family festivals and others. For this context, it also organised various awareness camps so that
maximum population know about the facilities and services that were offered by it. With this
marketing strategy, organisational workforce worked for building awareness, interest among
population and loyalty towards product and services.
As time is changing, it is using digital mechanisms to ensure that its services are available
with the clients wherever together with whenever they wants, with the hope to understand
customers wants and boost perceptions of brand (Marketing of HSBC Bank, 2020). As per the
research, managers of the company perceived that more than 81% of UK population has social
media account. Considering this, they decided to opt social media marketing in which all its
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products and services are promoted on various social media platforms such as Facebook,
Instagram, Twitter and many more in attractive manner. With these, the company emphasis on
catering real help along with support to audiences, driving intangible values related to retention
and loyalty. Along with this, the company has focuses on various internet based services that are
internet banking and mobile banking wherein all the information concerned with interest rates,
transactions and so on are presented to customers as per their wish and 24*7 hours. It was one of
effective marketing strategy of HSBC Banks as with this it was successful in attracting wide
customer base and fulfilling their requirements on time.
Promotional mix used by Company
Promotion mix is said to the mixture of promotional variables which are opted by
marketers to assist organisation to reach desired objectives (Dimitriadis, Ney and Dimitriadis,
2018). It is majorly used for creating, maintaining addition to increasing demands among
customers for the offerings made by enterprise. It involves decisions making for the strategies
concerned with promoting sales of merchandise which are offered by enterprises in the market.
Moreover, it engrosses activities which are undertaken for the purpose to communicate with
targetted audiences addition to distribution channels for encouraging sales demands of firm.
Among various marketing mix tools, promotion is the important one which focuses on building
awareness together with stimulating population to frame buying decision. In context to HSBC
Bank, there are wide number of promotional mix policies which are opted by the managers to
carry out activities related to marketing its offerings across globe. With the promotion mix
strategy, it attract customers, influence them to purchase and make them loyal with company.
Well designed as well as executing of these types of strategy guarantees long term success and
profitability for organisation. The marketing team of the institution majorly uses following
promotional mix policies for optimising efforts related to promotion along with reaching broader
audiences:
Advertising: Advertising is defined to the plan for reaching addition to motivating
audiences to purchase products through attractive presentation mechanisms (Duncan and
Goddard, 2016). It is considered as paid kind of non-personal demonstration along with
promotion of the offerings by an identified middlemen in exchange of some fees. With this,
customers are instigated to buy the merchandise at least once. In case with HSBC bank, its
marketing team provide complete information through attractive graphics of the policies to
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customers which attracts along with influences them to make buying determination. Moreover,
by making use of advertising strategy, marketing department of the banking institution develops
pull policy in which they persuades potential clients to purchase and use the services that they
provides at least once. The main targetted audience is the population that is residing across globe
for which they devise various advertisements to generate awareness among them (Advertising
policies of HSBC Bank. 2020). By using wide advertisements, the company works to deliver
alimentary information with the help of attractive presentations of investment services, financial
services, advisory services and various products that it offers are shown to audiences so that
attention of all are grabbed effectively.
Public relations: The promotion mix tool which assist in managing information spread
among public and enterprise is termed to public relation strategy. It builds communication and
beneficial relations among general public to that of company (Grant, Trautrims and Wong,
2017). With the help of the promotion mix policy, professionals of HSBC Bank communicates
with large population either directly or indirectly via media for the purpose of creating along
with maintaining positive brand image and establishing healthy relations with external people. In
this, public at large includes distributors, shareholders, customers, society, government,
employees and hence forth. Some of the ways in which the company makes relation with public
are public appearances, press releases as well as newsletters. Along with this, the managers also
makes fuller use of world wide web to the purpose. Furthermore, the financial institution has also
devised wide policies for promoting the offerings via public relation campaigns for the objective
of gaining support together with assistance from worldwide people directly or indirectly. It is the
important policy that has undertaken by the enterprise with the intention for providing
newsworthy, valuable and trusted information to general public of UK and other nations.
Sales promotion: The tool is majorly used for making efforts to deliver added value
addition to incentives to audiences and others for purpose of stimulating proximate and
contiguous sales (Hale, 2016). In association to HSBC Bank, it has framed various sales
promotion policies in form of offering attractive interests on accounts, fixed deposits and many
more with objective to enhance short term profits in particular period. Majorly, the sales
promotion policies of the company floats within the market during off seasons, end of
accounting year and festive seasons. This policy is considered as effective one as it grabs
attention of current clients and new customers. It is seen that managers of HSBC Bank
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undertakes the policy for the purpose of holding existing customers, attracting potential people,
counteracting competition along with taking benefits of opportunities which are analysed in
market research so that organisational sales are enhanced to maximum level.
Personal selling: It is one of traditional form of promotional strategy in which
organisational workforce interacts with customers through visiting them personally and sharing
relevant information for the products as per their interest (Hill and Et. Al., 2017). The other name
of it is face to face selling in which communication takes place between customers and company
in official manner. The company has hired productive and competent workforce that has skills
and potentials to demonstrate or share relevant information with audiences that leads to
persuading population for making attempts to buy merchandise of business. By undertaking
personal selling policy, employees of HSBC Bank makes interactions with audiences for
leveraging communication for conveying features, benefits, star attractions and interest rates
about the offered investment products and financial services for the purpose of building sales
demand. All the interpersonal skills and efforts are attempted by the members of company to
persuade sales to particular offerings. The main aim of undertaking personal selling policy by the
banking institution is to get personal attention through demonstration detailed information that
results in improving organisational image as well as enhancing sales in competitive scenario.
Direct marketing: It is said to kind of advertising policy which is dependent on
individual distribution of information to potential customers. It allows in generating particular
response from targetted customer segment about the products of firm. It also allows businesses to
emphasis on limited resources for producing suitable outcomes and measuring success accurately
through examining responses (Morrison, 2018). Further, suitable direct marketing policy gives
opportunity for product promotion directly with the one who needs them the most in the
competitive scenario. HSBC Banks has undertaken the promotional mix element in which it uses
technological intent for reaching wide population despite of any intermediary or other medium.
In this context, it is perceived that there are certain strategies that the banking institution has
undertaken for direct marketing are through fax, e-mails and texts. It has separate customer
relationship department that sends e-mails, fax along with text messages to wide situated
customers so to provide them detailed information about new financial products and other
services which are to be launched in upcoming duration.
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Internet marketing: It is also known as online marketing in which marketing efforts are
made by using web as well as digital technologies with the objective of driving sales through
mechanisms of electronic commerce (Moutinho and Vargas-Sanchez, 2018). In other words,
internet marketing is used to promote organisational merchandise over internet using techniques
which result in driving traffic and leads to improving sales demand. In association to HSBC
Bank, the online marketing strategies that are undertaken by it involves digital marketing, search
engine optimisation, paid advertising, social media marketing, influencer marketing and e-mail
marketing. With the help of all these strategies, the entity makes appeal to wide population at a
time.
Sponsorships: It is described to the action that supports any activity, event or person
financially as well as providing products (Newman, Peck and Wilhide, 2017). There are various
companies that sponsor trade shows, charities and events for reaching particular goals along with
enhancing competitive edge. In context to HSBC Bank, it has undertaken corporate social
responsibility in form of various programmes in order to help community through to donate
some money for social purposes. In the year 2006, HSBC Bank is considered as the first
financial institution which sponsored six national charities. Along with this, the company also
devised Investment Outlook programme that provide latest views to customers about major
donations that are made by it to promote livings of community members. Moreover, presently,
the banking institution is sponsoring various international events, games and other public
organisations.
TASK TWO
AIDA
Introduction along with application of theory
AIDA model is majorly used for purpose of marketing along with advertising
organisational products. It provides blueprint for various functions of company to target
touchpoints which are part of customer's purchase journey (Paley, 2016). It was propounded in
the year 1898 by St. Elmo Lewis who was an American Businessman by profession. By applying
the model in a company, managers optimises sales calls through improving interaction among
seller as well as buyer that are concerned with particular merchandise. In context to HSBC Bank,
marketing manager is making attempts for applying the model for determine behaviour of
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customers in entire buying journey so that all the requirements are fulfilled on time and
satisfaction is provided to them. Following are the steps that are proposed within AIDA model in
context to HSBC Bank are analysed under:
Illustration 1: AIDA Model. 2020
(Source: AIDA Model. 2020)
Awareness: It is foremost phase of AIDA model that illustrates about actions taken by
company to generate awareness among targetted customers in effectual ways. The managers of
institution create brand awareness as well as generates affiliation of customers for its offerings
(Palacio, 2016). In context to HSBC Bank, marketing department uses various advertisement
policies for building necessary information that can generate awareness among potential
customers about its financial services investment products and many more. In this regards,
markets of the banking institution places advertising on unexpected location, adds provocative
factor, targets individual that leads to improving awareness of existing and new customers. With
this, HSBC Bank increases its customer base and market share also.
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Interest: When company attains success in generating awareness among targetted
population, then the next is to keep it. In this process, managers makes huge attempts and efforts
to develop interest among population for the brand and its products appropriately. In association
to HSBC Bank, the entire marketing department works for utilising suitable techniques and
strategy on targetted customer segment which will support in developing interest for offered
aspects. The company understands customers requirements and keeps them at centre while
marketing its financial products and investment services that results positively in developing
customer interest for offered components.
Desire: It is the stage in which desires of customers are created for the products (Rana
and Rana, 2016.). When organisational managers founds that the targetted population is interest
in the brand then they focuses on yielding desires towards particular commodity or service. In
case with HSBC Bank, it provokes the desires of interest audiences through promoting its
financial offerings in attractive manner which enables customers to believe that the offerings are
best and other banks fails in replacing such facilities. In addition to it, it is also seen that there are
some negotiations made in interest rates as per the customers desires which assist customers to
take its offerings.
Action: It is the phase in which actions are taken for persuading customers to make
immediate purchase. Herein, the main objective is ensure proximate actions are taken by
potential audience for specific organisational products. In context to HSBC Bank, information
about particular products are presented by marketers in the attractive manner that assist
consumers to form buying intention. The main purpose of the company is to develop objectives
in context to sales. To attain this, managers works very hard to drive customers to take suitable
action through purchasing its valuable services that will lead to increasing sales demand and
attaining objectives.
Evaluation of theory
From the mentioned information it is evaluated that AIDA Model is effective tool that
assist the organisational managers to consider the stages wherein a customer passes while buying
product or service. With the help of the model, HSBC Bank is making huge attempts to create
awareness within targetted population which further results in purchasing actions by population.
The model provide various support to entity so that necessary modification can be done in
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current techniques or methods that are undertaken for customer persuasion that leads to positive
results in terms of huge sales.
Push and Pull strategies
Introduction of theory
In marketing, there are two types of strategies that are used by companies. Followings are
the both:
Pull strategy: In this strategy, interest within targetted audience for particular offerings
are created in such manner that results in moving of products through different channels to
ultimate consumers. In this, companies first develops interest and then demand for specific
product within targetted audience (Serrat, 2017). In context to HSBC Bank, managers enhances
product demands as well as draws clients towards its key offerings. The main objective of using
the strategy is making consumers active to seek availability of product and making huge product
demand in market. The widely used pull strategies by the marketers of banking institution
includes word of mouth, e-mail marketing, sales promotions and attractive offerings of financial
products as well as investment services. Along with this, it is also applied in the company for
establishing direct relations with audiences that leads to building loyalty towards brand.
Push strategy: Herein, numerous attempts are made for taking the organisational
merchandise to end consumers. It sis majorly used for the purpose of gaining product exposure.
The strategy helps companies to bring the targetted population towards the business products and
services. In relevance with HSBC Bank, wide types of tactics are employed by the managers in
order to push all its offerings to end consumers. Moreover, the duration when its offerings are
established in dynamic market, main focus is towards implementing push strategies. By applying
this, amount of time is generally minimised among the activities related to discovering a product
to that of purchasing it. Certain push strategies that are undertaken by the banking firm
comprises of appealing looking brochures, TV advertisements and maintaining efficient chain to
supply offerings (Shirazi, 2016). By using the strategy, the company gains some benefits related
to forecasting along with predicting wants of customers, establishing ales channel, creating
product exposure addition to demand and building consumer awareness.
Evaluation of theory
As per mentioned information, it is evaluated that push strategy and pull strategy both are
effective for the company. By using push strategy, HSBC bank has push its financial products to
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more than 35.27 million population residing across the globe and has achieved favourable
results. Similarly, through pull strategy, the company pulled approximate 22.15 customers
towards its investment services. Moreover, these strategies also provide various opportunities to
the institution so that it can make attempts to improve experiences of audiences and make them
loyal towards it for huge duration (Yadav, Dokania and Pathak, 2016).
CONCLUSION
The mentioned report concludes that marketing involves set of principles and practices
that are necessary to be implemented by all companies for achieving positive outcomes. There
are various promotional policies such as internet marketing, advertising, sponsorships, direct
marketing and many more that are undertaken by enterprises to gain sales demand and meet
objectives. AIDA model, push strategy as well as pull strategy are some essentials that assist in
influencing sales of company to large extent.
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REFERENCES
Books and Journals:
Baker, M. J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
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Dimitriadis, N., Ney, J. and Dimitriadis, N. J., 2018. Advanced Marketing Management:
Principles, Skills and Tools. Kogan Page Publishers.
Duncan, S. F. and Goddard, H. W., 2016. Family life education: Principles and practices for
effective outreach. Sage Publications.
Grant, D. B., Trautrims, A. and Wong, C. Y., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Hale, D. H., 2016. Pilot to profit: Navigating modern business entrepreneurship to build your
own business using online marketing, social media, content marketing and sales.
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Hill, L. and Et. Al., 2017. Creative arts marketing. Routledge.
Morrison, A. M., 2018. Marketing and managing tourism destinations. Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts.
Newman, T., Peck, J. and Wilhide, B., 2017. Social media in sport marketing. Routledge.
Paley, N., 2016. Marketing for the nonmarketing executive: An integrated resource management
guide for the 21st Century. CRC Press.
Payne-Palacio, J., 2016. Foodservice management: Principles and practices. Pearson Education.
Rana, S. S. and Rana, M. C., 2016. Principles and practices of weed management. Department of
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Serrat, O., 2017. The future of social marketing. In Knowledge solutions (pp. 119-128). Springer,
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Shirazi, F., 2016. Brand Islam: The marketing and commodification of piety. University of Texas
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Yadav, R., Dokania, A. K. and Pathak, G. S., 2016. The influence of green marketing functions
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Online:
Advertising policies of HSBC Bank. 2020. [Online]. Available through:
<https://www.campaignlive.co.uk/the-work/advertiser/hsbc/7426>.
AIDA Model. 2020. [Online]. Available through: <https://www.smartinsights.com/traffic-
building-strategy/offer-and-message-development/aida-model/>
Marketing of HSBC Bank. 2020. [Online]. Available through:
<https://www.marketingweek.com/hsbc-banking-on-digital-to-boost-brand-
perceptions/>The company has global expertise team which performs all the roles and
responsibilities
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