Marketing Report: HSBC Holding Plc, Marketing Essentials Analysis

This report provides a comprehensive analysis of HSBC Holding Plc's marketing strategies, functions, and their impact on the organization. It begins with an introduction to HSBC and then delves into the key roles and responsibilities of the marketing function, both in general and specifically within HSBC. The report explores the marketing environment and the interrelationships between the marketing department and other units within HSBC. A significant portion is dedicated to comparing the marketing mix of HSBC and Barclays, highlighting the tactics employed by HSBC's management to achieve business objectives. Finally, the report culminates in the development and evaluation of a marketing plan for HSBC, incorporating the marketing mix to promote its services effectively. The report covers various aspects of HSBC's marketing operations, providing valuable insights into its strategic approach.

HSBC Holding Plc
Marketing Essentials

Contents
Abstract...................................................................................................................... 2
HSBC holding plc: Introduction...................................................................................3
Task 1......................................................................................................................... 3
P1: Key roles and responsibilities of marketing function............................................3
P2: Key roles and responsibilities of marketing function at HSBC..............................4
M1: Roles and responsibilities of marketing with respect to marketing environment 5
M2, D2: Key elements of marketing functions and interrelations other units............7
Key elements of marketing function.......................................................................7
Significance of interrelationship between marketing and other units of HSBC........8
Task 2......................................................................................................................... 8
P3: Implementation of marketing mix in marketing planning process.......................8
Comparison of marketing mix of HSBC and Barclays..............................................8
M3: Tactics applied by the HSBC management to achieve business objectives.........9
TASK 3...................................................................................................................... 10
D2: Basic marketing plan of HSBC Holding Plc.........................................................10
HSBC marketing plan............................................................................................ 10
P4, M4: Evaluation of HSBC evidence based Marketing plan...................................11
Conclusion................................................................................................................ 14
References............................................................................................................... 15
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Abstract
The report has discussed case study of HSBC Holding Plc. Marketing function and its impact on
other functions. The first two parts of the report has discussed in detail the roles and
responsibilities of marketing function at HSBC. It has also included comparison of marketing
mix of HSBC and Barclays. The last part of report has devised a suitable marketing plan
comprising of marketing mix.
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HSBC holding plc: Introduction
Marketing is an essential function of any organization. It deals with analysis of market in which
a company operates in order to forecast demands of customers. It involves observation of
customer demands, customer driven market strategy and strategy setting for building of
profitable relations. This report has discussed in detail the marketing function of HSBC Holding
Plc. HSBC is a British world’s seventh largest banking network headquartered in London, Unite
Kingdom. The banking network has 3,900 branches in 67 countries of world with 235,175
employees worldwide (Roberts, 2010). The banking network offers multiple services
including retail banking, corporate banking, investment banking, wealth management and private
banking etc.
In first task this report has discussed the role of marketing function of HSBC banking network
across UK and globally. It has also discussed the importance and interrelationship of marketing
function with other functional units of the banking network. In second task, the report has
compared the use of marketing mix by HSBC and Barclays in order to achieve the organizational
objectives. This task has also discussed different tactics used by both banking networks for
demonstration of achievement of business objectives. In third and last task of this report, the
marketing plan for promotion of HSBC services has been discussed. The marketing plan devised
is detailed, coherent and evidence based.
Task 1
P1: Key roles and responsibilities of marketing function
Marketing function of a company has a significant influence on profitability and sales of a
company. There are various functions which work under marketing department of a company
(Adams, 2009). It includes sales, marketing research and development process, customer
service, promotional strategies etc. The various roles and responsibilities of a marketing function
include:
Growth strategy
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Marketing function of a company is essential to grow market of a company. It helps in targeting
new markets for existing and new products of a company (Albert, 2003). The marketing
function contributes in improving the growth of a company by targeting high market share.
Research process
Marketing function has the responsibility to contribute in research process of a company. It helps
in finding out niches for a company products and services (Baines, et al., 2008 ). It also aids
in finding out different market segments which help in earning huge profits for a company and
for increasing its sales.
Sales support
Sales department of a company depends on its marketing strategies to speed up its products or
services demand in market. The marketing manager of a company facilitate sales department
with expert lead to ensure high sales (Grewal & Levy, 2010 ). Marketing function encourages
customer through prompt replies, telephone marketing and email promotion to opt for the
company’s products and services.
Product development
Marketing function of a company works with product development function of a company in
order to innovate unique items (Albert, 2003). It makes a complete analysis of existing
products offered by a company in context of current demand of customers.
Communication
It is essential to communicate with customers in order to keep them updated and aware of
company products and services (Grewal & Levy, 2010 ). Marketing department run
advertisement campaigns, e-mail marketing programs and create promotional content in order to
attract customers from local and global market of a company.
P2: Key roles and responsibilities of marketing function at
HSBC
The marketing department of a bank has wider roles and responsibilities as compare to other
sectors. Due to wider activities and long range services offered by banks to customers, marketing
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function has a direct role in improving the customer range (Kotabe & Murray, 2004). HSBC
has devised a wide marketing function with complex hierarchy in order to keep customers aware
of its new and existing services for their facilitation purpose. The major roles and responsibilities
of marketing function of HSBC in global market include:
Monitor competition
The marketing function forecasts its budgets for marketing, prospective demand in market and
strategies adopted by rivals. It plays a direct role in figuring out sales and marketing strategy to
gain and main competitive edge in market (Elijah & Abdullahi, 2013). It aids in monitoring
competition in market to devise suitable counter strategies to beat rival banks. HSBC has major
competition with Barclays, Lloyds Banking group and The Royal bank of Scotland Group.
Marketing function of HSBC helps in analysing competitive strategies adopted by these banking
groups to provide better services to customers.
Transmission of brand values
Marketing function plays a direct role in introducing brand values of a company with its
customers. The marketing strategies aim at providing complete information of benefits a
customers can receive by using its products or services (Krstic & Becic, 2011). The marketing
function of HSBC transmit its brand values not only inside UK but also on global level.
Communication with investors and customers
Banking network has several significant stakeholders with which it maintains a strong
communication network. It is necessary to maintain a smooth flow of communication with
investors, suppliers and customers (Krstic & Becic, 2011). HSBC communication network is
the responsibility of its marketing department with all stakeholders.
Projection of Higher demand
Marketing function of HSBC create awareness among customers about services offered by the
banking network (Elijah & Abdullahi, 2013). It helps in healthy competition in market and
attract customers from across the globe. Marketing function of the bank has a direct link with its
sales department to offer quality services to customers as per marketing campaigns projected.
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M1: Roles and responsibilities of marketing with respect
to marketing environment
The marketing management of a company plays a direct role in making plans and
implementation of these plans for promotion of its services. The marketing plan include pricing,
promotion and distribution. The roles and responsibilities of marketing department of HSBC in
context of marketing environment include following:
Market strategies
Marketing department has a direct and primary role for devising marketing strategies and plans.
These plans have to be implemented to market products and services in different markets in
accordance with different segments. It analyses products and services offered by rivals in order
to innovate services of the banking network (MakovecBrencic, et al., 2012). Marketing
strategies have influence in organizational objectives. These strategies provide a balance between
corporate goals and available opportunities in market.
Marketing information system (MIS)
It collects complete market information regarding factors impacting demand of services of bank.
These factors include product, planning and implementation of marketing strategies (Stone, et
al., 2007). Management information system is essential to maintain a smooth network of
logistics of HSBC.
Monitoring of marketing environment
Marketing function of HSCB helps in monitoring the new developments and innovation in
services offered by rival banking groups. It aids in monitoring competition in market to devise
suitable counter strategies to beat rival banks (Baines, et al., 2008 ). HSBC has major
competition with Barclays, Lloyds Banking group and The Royal bank of Scotland Group.
Marketing function of HSBC helps in analysing competitive strategies adopted by these banking
groups to provide better services to customers.
Marketing research
It is essential to research the new markets for existing products and services. The marketing
function of HSBC gathers specific knowledge about the demand of customers and suitable
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pricing to keep them engaged in long term. It helps in finding out niches for a company products
and services (Baines, et al., 2008 ). It also aids in finding out different market segments
which help in earning huge profits for a company and for increasing its sales.
M2, D2: Key elements of marketing functions and
interrelations other units
Marketing function of HSBC has several roles including finance, advertising, distribution and
implementation of promotional strategies.
Key elements of marketing function
The key elements of marketing function of HSBC include research, strategy, planning and
tactics.
Research
It plays a major role in conduct market research in order to investigate demands of customers.
For accomplishment of business goals, market information regarding finance, resources, logistics
and raw materials is required (Grewal & Levy, 2010 ).
Strategy:
The research process of marketing function leads to alignment of strategy to meet demands of
customers (Krstic & Becic, 2011). The strategy is devised after taking into account strengths
and weaknesses of business operations.
Planning:
The alignment of suitable strategy for suitable business operations help in suitable planning for
marketing plans. It involves financial and distribution planning, forecasting of demand in market,
communication with customers and investors etc (MakovecBrencic, et al., 2012).
Tactics:
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It involves implementation of marketing plans on short and long term range to meet customer
expectations (Baines, et al., 2008 ). These tactics involve practically practicing marketing
plans in order to keep customers engaged in long term.
Significance of interrelationship between marketing and
other units of HSBC
Marketing department of a company has strong connection with other departments and units. The
other functional units in a company include finance, logistics, sales, HR and other departments.
Marketing function plays a significant role in impacting the strategies and activities of each of
these departments. Marketing campaigns and strategies involve high budgets. Finance
department controls the effectiveness of marketing by approving a specific budget. On the other
hand, aggressive marketing strategies put high burden on finance department of HSBC
(Roberts, 2010).
Same like this, marketing campaigns can only be effective if suitable and efficient sales and
marketing personnel are hired by HR department (Roberts, 2010). In case workers are not
selected as per required skills, the marketing strategies and budgets can go wasted. Sales
department of HSBC relies on its marketing campaigns and strategies to target different
customers in different market segments.
Task 2
P3: Implementation of marketing mix in marketing
planning process
Marketing mix is an essential marketing strategy adopted in corporate world in order to ensure
that organizational goals are accomplished. Different companies use marketing mix in
customized way to suit business operations (Vendor Seek, 2017). The marketing mix of
HSBC and Barclays has a direct influence on effective functioning of its promotional strategies.
Comparison of marketing mix of HSBC and Barclays
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The marketing mix of both banking groups involved:
Product
HSBC offers wide range of business services including retail banking, corporate banking,
investment banking, wealth management and private banking etc (Roberts, 2010). In order to
stay competitive, the banking network offers wide range of products and services to keep
customers engaged. Barclays also offers wide range of products and services to customers. It
includes investment management, commercial banking, retail banking, personal banking,
premier banking and last but not least digital banking services (Bhasin, 2017).
Price
HSBC has adopted an aggressive pricing policy in order to cope up with intense competition in
market. Value added pricing policies has fixed its prices to facilitate customers in short and long
term (Bhasin, 2017). The factors influencing the pricing policy of HSBC include personal
objectives, market share targets, profit maximization strategy etc. On the other hand Barclays has
managed its overheads to lower costs in order to charge less from customers. It has resulted in
25% reduction in operating costs leading to low service charges from customers.
Place
HSBC holding Plc has 3,900 branches in 67 countries of world with 235,175 employees
worldwide (Roberts, 2010). With internet banking services, the banking network offers global
services within seconds. Barclays has managed its presence in 50 countries of world with, 4,750
out of which 1,600 are situated in UK. It is also member of global ATM alliance to offer 24/7
cash withdrawal and transfer services to customers through more than 4,000 branches
worldwide.
Promotion
HSBC has chosen extensive marketing strategy to promote its products and services among
customers. The marketing tools it uses include advertisement through billboards, business
magazines, newspapers and personal selling (Roberts, 2010). The banking network has
voluntarily adopted corporate social responsibility and SOS children campaigns to promote its
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services worldwide. Barclays has used different media channels to promote its services including
television, official website of bank and print media etc (Bhasin, 2017).
M3: Tactics applied by the HSBC management to achieve
business objectives
The tactics used by HSBC marketing function to accomplishment of business objectives involve
several different strategies. The major focus of the banking network on using compatible
marketing mix in order to retain customers in long term. The marketing mix of HSBC and
Barclays has a direct influence on effective functioning of its promotional strategies.
HSBC offers wide range of business services including retail banking, corporate banking,
investment banking, wealth management and private banking etc. (Bhasin, 2017). In order to
stay competitive, the banking network offers wide range of products and services to keep
customers engaged. HSBC has adopted an aggressive pricing policy in order to cope up with
intense competition in market. Value added pricing policies has fixed its prices to facilitate
customers in short and long term. The factors influencing the pricing policy of HSBC include
personal objectives, market share targets, profit maximization strategy etc.
HSBC holding Plc has 3,900 branches in 67 countries of world with 235,175 employees
worldwide (Roberts, 2010). With internet banking services, the banking network offers global
services within seconds. HSBC has chosen extensive marketing strategy to promote its products
and services among customers. The marketing tools it uses include advertisement through
billboards, business magazines, newspapers and personal selling. The banking network has
voluntarily adopted corporate social responsibility and SOS children campaigns to promote its
services worldwide.
TASK 3
D2: Basic marketing plan of HSBC Holding Plc
The marketing plan of HSBC products and services include several tasks in order to ensure that
promotions are done properly.
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HSBC marketing plan
The marketing plan of HSBC involves following tasks:
Market research
The first step for devising a suitable marketing plan is to do an extensive market research. It
helps in analyzing demand of customers. It also helps in finding out which services are high in
demand (Elijah & Abdullahi, 2013).
Target consumers
Customers should be targeted according to different segments. The customers who are likely to
be potential consumers should be identified. The major focus of marketing department should be
to attract their attention (Knowledge Pills, 2013).
Suitable strategies
After selecting market segment to which products or services have to be offered, suitable
implementation strategies should be chosen (Grewal & Levy, 2010 ). The operational
strategies may include personal selling, selling through internet etc.
Budget proposal
The marketing budget has a direct role in success of a promotional campaign. The budget
allocated to the marketing plan should be in accordance with the expected benefits from the
marketing plan (Roberts, 2010). The marketing budget should be synchronized with the
benefits and risks associated with a marketing plan.
Suitable channels of marketing
The most important part of a marketing plan is to choose a suitable marketing channel for
promotion of products or services (Albert, 2003). The company should allocate suitable
marketing channels including digital marketing techniques, personal selling or other promotional
tactics to attract customers.
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