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Three Key Considerations sample essay

Discuss three key considerations when segmenting an international market.

The first key consideration of segmenting international market is the local cultures, when HSBC maintained a local presence and local knowledge in each area where branch operates. Its fundamental operating strategy is to remain close to its customers. Marketing programs for local customer groups in trading areas, neighbourhoods and even industrial stores. Refer back to the HSBC case study the tagline which is “world’s local bank”. It actually focuses on serving local markets. Remain its local knowledge will make it easily understand local cultural and local demand, then the bank could satisfied every customer in each area. HSBC has demonstrated its local knowledge with marketing efforts dedicated to specific locations. The second consideration when segmenting an international market is local economy/facts. HSBC undertook some “Support Hong Kong” campaign to revitalize the local economy hit hard. In currently international market, competition became extremely fierce.

Only HSBC has occupied some market shares in the local economy, it can survive in the long term. Hence, HSBC delayed interest payments for personal-loan customers who worked in industries most affected by SARS. Also, the bank offered discounts and rebates for HSBC credit card users when they shopped and dined out. More than 1500 local merchants participated in the promotion. The last one is targeting consumer based on customers’ different value. HSBC launched a global campaign “different values” to focus on a niche market which was defined customer group seeking a distinctive benefits. Different customers has different need when they facing financing their assets. HSBC aims to offer unique products and services to different customer. Homogeneous preferences actually exist when consumers want the same things. Then, heterogeneous preferences exist when consumers want very different things. As for clustered preferences, it reveals natural segments from groups with shared preferences.

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