Principles and Practices of Marketing 1.0: HSBC Bank Marketing Report

This report provides a comprehensive analysis of HSBC Bank's marketing strategies, focusing on its promotional mix and the application of marketing theories. The report begins with an overview of HSBC, its global presence, and its financial services. It then delves into the bank's promotional mix, detailing advertising campaigns, public relations initiatives, sales promotion techniques, personal selling approaches, direct marketing efforts, internet marketing strategies, and corporate social responsibility activities. The second part of the report applies the AIDA model to understand customer behavior and the impact of marketing efforts. The report highlights specific campaigns, initiatives, and partnerships undertaken by HSBC UK to achieve its marketing objectives. This analysis offers insights into how HSBC builds brand awareness, engages customers, and drives sales within the competitive financial services market.

Principles and Practices
of Marketing

1.0 INTRODUCTION
Marketing can be referred to as the course of action or initiatives taken up by an
organisation with a view to create awareness of the organisational products and services among
public at large (Guidolin, Guseo and Mortarino, 2019). It is regarded as one of the most crucial
functions of a business as this strives to set networking between the company and its target
audience. By way of marketing, an organisation is able to convey the mission, vision and
objective of brand to the customers prevailing at market place. The present project is based on
HSBC Bank which is considered as one of the biggest financial and banking organisations across
the globe. It is headquartered within London, United Kingdom. The project is divided into 2
tasks. The first task consists of the overview of the company along with its promotional mix.
Further, the second task talks about application of 2 marketing theories to the entity.
TASK 1
1.1 Background or Overview of HSBC
HSBC (HongKong Shanghai Banking Corporation) is a multinational investment bank
and provides financial services holding company. It is the 7th largest bank in the world declared
in 2018, and the largest branch is located in Europe. It having around 3,900 offices in 65
countries and territories across Africa, Asia, Europe and South America with having a 38 million
customers. It delivers the opportunities of investments to big companies as well small companies
around the global market and also facilities the financial services such as business purpose loans
to organization (Mendes Thame Denny, 2018).
HSBC UK was developed on the 1st of July in the year 2018 in response to the Financial
Services (Banking Reform) Act 2013 that requires every bank to ‘ring-fence’ its core banking
services within the bounds of United Kingdom by the end of 1st of January in 2019. This bank
serves its business and personal clients pertinent to United Kingdom. It maintains an extensive
brand networking within the nation in order to ensure the provision of support in terms of
fulfilment of the needs of customers.
As per the marketing record the HSBC strategies work as commercial banking, global
banking market, it reaches to the global to million of customers and provide guidance for
investment in small and big organization where it unlock its customers potential, to encourage
for risk taking investment with the objective to gaining of huge profits, they only targeted the

corporates, governments and financial institutions regarding to facilities the financial products
and services.
HSBCs have their team of global expertise their role is to analyse the economic and
financial markets by which they can motivate their clients for investments by allocate all the pros
and Cons of respective project to investments. As they follow and work under the guidance of
the world's financial regulation sections (Gunn, 2018). They having the 150 years of experience
of providing the financial needs to their customers has it evolved the global 500 enterprises,
where the 2,55,000 employees are working on their payrolls to fulfil the commitments and
loyalty of their clients. The marketing strategies of HSBC as they regulates the market mixing of
demographic and geographic strategies to make its products and services addressable to their
respective individuals and corporate customers, the missions and visions are more prioritise with
the respect to the clients to deliver their needs and wants to accomplish client's desirable goals
and vision is to sustain as international bank as all over the world. As per the market report the
goodwill of HSBC's wealth is very attractive and best providing of financial service as compare
to other private banks.
2.0 Promotional Mix and Activity of HSBC UK
The promotional mix can referred to as the integration of a number of promotional tools
which is used by businesses across the globe with a view to enhance, maintain and develop the
demand in market for the merchandise and facilities sold by the company. The 4th element of
marketing mix has been acknowledged to be promotion, which emphasizes upon creation of
awareness and persuasion of customers for the initiation of purchase (BACK and ISAKOVIC,
2018). It consists of various tools which foster the accomplishment of promotional goal and
objective of a company within due course of time. The promotional mix encompasses elements
such as Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing.
It is required by marketing managers to take into account these tools and employ them in an
effective and strategic manner with a view to derive positive results out of the same. All of these
are discussed in context of HSBC UK as follows:-
2.1 Advertising
It is a paid type of non personal promotion of the merchandise and facilities sold by a
sponsor in return of an amount referred to as fee. By leveraging the use of this promotional mix

tool, the marketing manager of HSBC UK develops a pull strategy whereby a client is persuaded
to purchase the financial products and services sold by the bank at once. Hereby, the wholesome
information together with attractive and lucrative pictorial representation of the merchandise and
services offered by HSBC UK are shown to people with a view to gain their attention and appeal
to them in an effective manner (Alexandrova, 2018). One of the most famous advertising
campaigns of the respective bank is acknowledged to be 'We Are Not an Island' campaign. It is
well known that launching advertising campaigns allow the bank functioning across the globe in
tapping the customer purchase behaviour in a positive manner and thereby influencing them in a
way such that they make a purchase of the financial offerings.
2.2 Public Relations
This is one of the prominently used tools belonging to the promotion mix which is used
by marketing managers of the companies across the globe for creation of healthy relation with
public at large. HSBC UK makes use of a number of public relation campaigns in order to gain
support and facilitation from the people worldwide in a direct or indirect manner (Bakir and et.
al., 2019). Hereby, the public at large encompasses customers, employees, distributors, suppliers,
government, shareholders and the society as a whole. In this regard, it is identified that publicity
is one such form of PR which is employed by HSBC UK in order to capture the attention of
public and build long lasting relations with them. Now, of the most renowned PR campaigns
held by HSBC UK and organized by We are Social is #ZeroRegrets campaign. This campaign
has been aimed at engaging the apprentice along with students across the territory of United
Kingdom. PR is also being leveraged by the organisation via sponsorship. HSBC UK sponsors
various sports events across the globe like golf (the Open Championship), rugby (British & Irish
Lions) and tennis (Wimbledon).
2.3 Sales Promotion
It can be defined as the short term incentives which are provided to the customers with a
view to inflate the revenues of the company for a given time frame. In this regard, it has been
analysed that the most widely used sales promotional tools and techniques are regarded to be
discounts, Payback offers, Coupons, Freebies and many more. Most of the times, these are used
by organisations at the time of festive seasons as it is the time when the purchase behaviour of
consumers is most stimulated (Guidolin, Guseo and Mortarino, 2019). The employment of sales
promotion tools and strategies provide assistance to HSBC UK in enhancing the short term profit

by gaining the attention of existing as well as prospective future customers. The most revenue
generation sales promotion tool used by HSBC UK is “shop online with HSBC debit card and
get a chance to win cash rewards for everything that is purchased.”
2.4 Personal Selling
It is a conventional tool pertaining to promotional mix. Hereby, the salesperson of an
organisation strives to set communication with the customers with a view to convey the features
and star attractions of the products and services of the company. It is identified as being a face to
face interaction tool used by HSBC UK to build communication between the representative of
organisation and the customer, thereby facilitating sales and development of long term relations
(Denny, 2018). The direct conversation of the spokesperson of HSBC UK with consumers leave
an effective impression over them and is quite effective in persuading them to make a purchase
of the offerings of enterprise. Personal selling is carried out by HSBC UK via the opening of
super sale centres also referred to as HSBC hyper banks across the main city centers of United
Kingdom within Leeds, London and Birmingham. This idea was inspired from Apple stores.
The main objective behind opening of these stores by HSBC was to facilitate increment in sales
and provision of superior quality services.
Illustration 1: HSBC Hyper Banking experience

2.5 Direct Marketing
This is a form of marketing whereby an entity leverages the use of technology with a
view to reach the public at large without involving any paid medium or intermediary. With
respect to this, it has been recognised that some of the most prominently used strategies for the
purpose of directing marketing are by way of emails, texts, fax and many more. Hereby, HSBC
UK sends text messages, emails or fax in an instance whereby new products and services are
launched by it in market place (Luiz and et. al., 2019). Besides this, it is recognised that HSBC
Direct is an example whereby the bank provides the customers with the option of easy banking
via direct channels such as telephone and internet along with 365*24 services. Even the sales
promotion strategies or techniques are conveyed to the public by using direct marketing.
2.6 Internet Marketing
Internet marketing can be referred to as a type of marketing whereby digital and online
based digital technologies are employed by companies with a view to set interaction with the
public at large. It is one of the most prominently used techniques and tools of marketing whereby
an entity publishes information about its products and services over the internet so as to gain the
attention of large base of audience (Sifonios, 2018). Hereby, some of the most commonly used
Illustration 2: HSBC Direct

strategies by companies are social media marketing and digital marketing. Both of them are quite
effective in appealing to a large number of individuals at a single point of time. Internet
marketing serves as a strategic measure through which HSBC UK is able to influence the buying
behaviour of consumers in a positive manner and make them undergo a purchase of the
organisational offerings.
2.7 Sponsorship
Corporate Social Responsibility (CSR) can be referred to as a management concept
which is integrated by companies across the globe within the business operations. Herein, a
company takes into account the environmental as well as social concerns to operate in a manner
which is the favour of the environment. CSR is acknowledged to be an integral part of HSBC
UK. As well as making charitable donations, HSBC operates a number of programmes to help
our customers and employees donate to charity. In 2006, it was the first bank to enable customers
to donate to their six national charities and Disasters Emergency Committee appeals via their
ATMs. Since then, more than £2.2 million has been donated to causes including the Typhoon
Haiyan Appeal, the fastest and most generous response to a crisis appeal by their customers
using their ATMs. The six national charities of the bank are selected by its employees every two
years. Their partners for 2016/17 are Alzheimer’s Society, Cancer Research UK, Dogs Trust,
Mind, Macmillan, Cancer Support and NSPCC (CORPORATE AND SOCIAL RESPONSIBILITY
AT HSBC, 2020).
Illustration 3: HSBC UK's Partnership with Alzheimer's Society

TASK 2
1.0 AIDA Model of Marketing
1.1 Definition and application of model
It is an effective model that is adopted by various business associations in order to
specify the overall buying process of the customer from which they goes through while making
purchase from the same company (BACK and ISAKOVIC, 2018). With reference to HSBC UK,
the respective marketing manager of the company makes use of AIDA model of marketing as it
is provides support in determining the buying pattern of the customers that provides guidance
company about its customers and also guides them how they can fulfil their needs and
requirements in rightful manner. This method is supportive in managing with the customers
having different mind set and also contributes in handling every segment of customer in best
possible manner. The overall process of this model has been explained below with each of its
steps in relation to the HSBC UK:
Attention: This is the first and foremost stage of AIDA model which states the initiative
taken by the company to grab attention of its customers in effective manner. Here, with reference
to HSBC bank, it can be said that the respective company makes use of advertisement for
developing knowledge of customers about the produc6ts and services that are offered to the
customers. Advertisement directly helps the company in enhancing awareness of its customers
about the product and services. This awareness further supports the company in attracting more
number of customers towards them in present as well as future (Chhabra, 2020). Also with the
higher attention it will be easier for the company to influence its sales performance that will lead
to attaining business objectives too. Apart from this, it can be said that it provides major
contribution in increasing market share of the HSBC UK with effective command over its
customers at market place. For this purpose, the respective bank makes use of advertising
campaigns and marketing plans which help the organisation in capturing the attention of large
base of population.
Interest: This is the second stage, which emphasises on developing interest of customer
towards the company as well as its offering at marketplace in appropriate manner. This step
mainly initiatives after making the customers aware about the existing products and services of
the business association. After completion of awareness initiative the company started working

on increasing potential of its customer towards the product in order to develop their respective
interest level towards it in rightful manner. With reference to HSBC bank, it can be said that its
marketing manager of the company emphasises on making use of right marketing technique
towards the specific targeted customers that will directly provide support in influencing interest
of these customers towards the offering of the company which will raise their sales performance
in the near future. Social media marketing, personal selling and public relations are the tools that
are used by HSBC UK to build interest within the potential leads.
Desire: This is the third stage of AIDA model, which initiatives after developing interest
of customer towards the products and service. Here, it can be said that when customers interested
towards the offering of respected company. After developing the interest marketing manager
emphasises on developing desire of customer towards the specific product or serve (Sifonios,
2018). In context of HSBC UK, it can be said that marketing manager of the company
emphasises on advertising its bank product or services in such a manner that develops perception
of customers that this is the best bank and none of the another bank could replace the quality of
service offered by this bank. Along with this, marketing manager of the HSBC UK also shows
its customers special features of the company's products that differentiates them from another
and also satisfy its customers in best possible manner. HSBC UK focuses upon the 24*7 online
services provided by the organisation via HSBC Direct. This helps to capture the attention of
public and instil a desire of purchase within them.
Take action: This is the last stage in which main motive of marketing manager is to
ensure that customers takes action at their own level and make purchase from the same company
(Sifonios, 2018). With reference to marketing manager of HSBC UK, it can be said that
marketing manager of this bank develops its target and goals with relation to its sales of the
entity. Here, it can be said that main focus of marketing manager of the HSBC UK emphasises
on driving customers to make purchase from the same company by making favourable action so
that they can easily obtain sales target in rightful manner.
1.2 Evaluation of effectiveness
On the basis of overall information developed from the KPI, it can be said that the HSBC
UK is making use of this model in effective manner and also provides adequate knowledge to
marketing manager about its customers perception as well as their buying behaviour. This
directly provides support to the company in modifying their existing approaches used to

influence its customers. This ultimately leads to attainment of its sales objective in quicker
manner. As per the application of KPI and Benchmarking approaches to the marketing strategies
and techniques used by HSBC UK, it can be comprehensively said that the organisation is
performing quite well. This can be said on the basis of its financial performance at present stage.
The bank has been earning profits from a long period of time which indicates its sound financial
standing in the global market place.
2.0 Pull and Push Strategies
2.1 Definition and application of model
Pull marketing: This is determined as the effective strategy in which interest of
customers is effectively created among the targeted audience which is further being demanded
from the channel partners (Rane and et. al., 2019). It also leads to the pull of product by the
manufacturers sales channel. With reference to the HSBC UK, it can be said that respective
manager of the company develop various attractive product with additional features that will
provide range of benefits to the customers and serves them in adequate manner. This directly
attracts customers towards them in creates demand for the products.
Push marketing: This is determined as the effective promotional plan according to
which business manager focuses on promoting products among customers and tries to influence
them to make purchase from the same. With reference to HSBC UK, the respective manager
makes use of some common marketing and promotional tactics in order to sell maximum number
of products to its customers (Sifonios, 2018). They also introduces incentive scheme for its
salesperson so that can place additional efforts in selling maximum number of products to its
customers which will result in increase of sales performance as well as profitability of the bank
in rightful manner. Hereby, the use of intermediaries is done by an organisation for augmentation
of sales and profits in the long run. These intermediaries tap the purchase behaviour of customers
and thereby persuade them to make a purchase.
HSBC UK puts into implementation the integration of push and pull marketing strategies
in order to capture the attention of public towards their financial products and services. This
helps the respective bank in increasing its revenues and profits by a fair margin.

2.2 Evaluation of Effectiveness
On the basis of overall analysis done from KPI data, it can be said that both the strategies
are helpful for HSBC UK. These provide assistance in grabbing the attention of public at large
towards the financial products and services provided by the bank. The effectiveness of these
strategies can be proven on the basis of the bank's financial performance in the current context.
Along with this, with the usage of both the strategies, the bank also improves experience of
customers. This instils a sense of loyalty within the customers towards the financial institution
for a relatively longer period of time. As a result of this, the market positioning of HSBC UK
bank also gets enhanced.
The HSBC UK is accelerating their efforts for boosting their revenue from North
America and Europe. In addition to this, they have opted to pull out their services from low
returning markets. For this, they are taking into consideration to leave Turkey and may even sell
there business in markets in which they are struggling while competing with local rivals. This
implies that HSBC has opted for pull strategy in context of revenue that is earned.
Illustration 4: Asia Dominates HSBC's Profits

Bank is delivering their services in around 50 countries across, Middle East, Europe,
North America and Asia but later these regions only accounted for around 49% of their revenue
and 90% revenue in 2018.
CONCLUSION
On the basis of overall information provided in the above section, it has been concluded
that marketing plays an essential role in the growth of the company as it provide support in
enhancing awareness of the company among its customers which increases their sales
performance in the rightful manner. Also, it has been further determined that there are different
marketing principles which are used by business for executing their marketing activities in such a
manner that leads to success of the company. Furthermore, it can be said that businesses can
easily influence their sales performance in rapid manner by making use of different
advertisement and promotional techniques like social media, digital marketing marketing
campaigns etc. All of them provide major support to the company in attaining its sales objective
and contributes in enhancing its profitability in adequate form.