Marketing Mix of HSBC and 7Ps (Updated 2024)

The Marketing mix of HSBC analyses the 7Ps of HSBC, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of HSBC. HSBC is a multinational company of British origin that works in the finance and banking sector. Founded in 1991, it has its headquarters in London, UK. HSBC is the second largest bank in the world, and it operates as a public Ltd company. It has a strong base in India and thus has various competitors in the banking capital finance sector. One of its main rivals in the banking industry in India are:

• State Bank Of India
• ICICI Bank
• HDFC Bank

About HSBC

• Type: Bank
• Industry: Financial services
• Founded: 1865
• Founder: Thomas Sutherland
• Headquarters: London, United Kingdom
• Area served: Worldwide
• Key people: Mark Tucker (Chairman) and Noel Quinn (CEO)
• Number of employees: 219,199

HSBC Product Strategy

HSBC has divided its activities into Private Banking, Wealth Management & Retail Banking, Investment Banking &Global Banking, and Commercial Banking. It provides its consumers, residential clients, and institutional banking with various products and services that differ slightly from country to country.

The new Product Mix of HSBC in 2024 is as follows (Source).

1. Retail Banking: Including checking and savings accounts, personal loans, mortgages, and credit cards.
2. Commercial Banking: Offering services such as business accounts, loans, and credit facilities to small and medium-sized enterprises.
3. Wealth Management: Investment advice, planning, and private banking services.
4. Global Banking and Markets: Catering to corporate and institutional clients with services like investment banking, financing solutions, and risk management.
5. Global Private Banking: Tailored wealth management services for high-net-worth individuals.
6. Digital Banking Services: Online and mobile banking platforms for convenient access to banking services.
7. Insurance Products: Including life, health, and property insurance, among others.

HSBC Pricing Strategy

As a leading global bank for financial transactions, HSBC’s pricing strategy is sophisticated and tailored to attract customers to its diverse range of financial products and services:

1. Competitive Pricing: In retail banking, HSBC often employs competitive pricing to match or undercut competitors, especially in consumer-focused products like checking accounts, savings accounts, and loan rates.
2. Value-Based Pricing for Premium Services: HSBC likely uses value-based pricing for services like wealth management and private banking, reflecting these offerings’ premium nature and personalized service.
3. Risk-Based Pricing in Lending: In the case of loans and credit facilities, HSBC probably adopts risk-based pricing, where interest rates are determined based on the borrower’s creditworthiness and market conditions.
4. Tiered Pricing for Business and Corporate Services: HSBC likely uses tiered pricing for its commercial and corporate banking services, offering different pricing structures based on the business size, transaction volume, and complexity of services required.
5. Dynamic Pricing for Investment Products: For investment products, pricing is likely dynamic, changing with market conditions, fund performance, and investment risk levels.

HSBC Place Strategy

HSBC’s place strategy typically involves a global approach to accessibility and customer service in the international business and financial sector:

1. Global Branch Network: HSBC operates an extensive network of branches across multiple countries, ensuring accessible banking services in major cities and regions worldwide.
2. Online and Mobile Banking Platforms: The bank offers robust online and mobile banking solutions, allowing customers to access services remotely, enhancing convenience, and reaching tech-savvy consumers.
3. ATM Network: HSBC maintains a widespread network of ATMs, providing customers with easy access to cash and account management features.
4. Corporate and Investment Banking Centers: HSBC strategically locates its corporate banking centers in major financial hubs worldwide for corporate clients.
5. Wealth Management Offices: HSBC has dedicated wealth management offices that cater to high-net-worth individuals, offering personalized financial services in key locations.

HSBC Promotion Strategy

HSBC has used an extensive promotional and marketing strategy to create awareness about its bank and its various services. Advertising was the best tool. Therefore, HSBC placed advertisements on billboards, newspapers, and business magazines. Informative commercials were telecast at regular intervals on television so that the consumers could become familiar with the bank and its business strategies.

All the bank’s ads have been informative, emphasizing its numerous products and services. HSBC Bank operates or has acted as a sponsor for many events and exhibitions. It is HSBC bank that has been the official sponsor of the “JaguarRacing Formula One” team, “HSBC Women’s Champions” in Golf, “AS Monaco” in Football, and “Telford Raiders” in Rugby. HSBC is also the banking partner of “The Wimbledon Tennis Championship.”

To create a good image for its bank and corporate customers, it has become a supporter of environmental and social causes. For instance, the bank is promoting the protection of nearly twenty thousand plants from extinction. HSBC has a tie-up with “SOS Children” and sponsors “The Great Canadian Geography Challenge.”

Some Recent Video ads and Print ads for HSBC are:

HSBC People Strategy

The “People” component of the Service Marketing Mix refers to the staff, employees, and all other persons who directly or indirectly play a part in delivering a service. It is crucial in determining the quality and creation of the service experience. For financial services organizations such as HSBC, one of the world’s largest banking and financial services organizations, “People” play a significant role in shaping customer perceptions and satisfaction. Here are several critical points about the “People” aspect of HSBC:

1. Global Workforce Diversity: HSBC employs a diverse workforce from various cultures and backgrounds, enabling it to cater effectively to its global customer base. This diversity enhances innovation and decision-making and ensures a wide range of customer needs and expectations are understood and met.
2. Employee Training and Development: HSBC invests significantly in training and development programs to ensure its employees are well-equipped with the latest financial knowledge, customer service skills, and compliance practices. This ensures customers receive professional, informed, and ethical service at all contact points.
3. Customer Service Excellence: HSBC prioritizes excellent customer service, with employees trained to offer personalized and efficient service. The bank uses customer feedback to continuously improve service levels and ensure staff responsiveness to customer needs.
4. Specialist Teams for Tailored Services: The bank has specialist teams across various domains, such as wealth management, business banking, and retail banking, to provide expertise and tailored services to meet the specific needs of different customer segments.
5. Leadership and Management: HSBC’s leadership plays a pivotal role in shaping its service culture. The bank’s leaders emphasize integrity, continuous improvement, and a customer-centric approach, guiding the workforce toward achieving these ideals.
6. Employee Satisfaction and Engagement: Recognizing the direct correlation between employee and customer satisfaction, HSBC creates a positive work environment. This includes competitive compensation, career advancement opportunities, and initiatives aimed at employee well-being.
7. Ethics and Compliance: HSBC employees must adhere to high ethical standards and comply with regulatory requirements. The bank conducts regular training and assessments to meet these standards, fostering customer trust and loyalty.
8. Digital Empowerment: Recognizing the importance of digital channels in today’s banking services, HSBC empowers its employees with digital tools and training. This improves efficiency and enables staff to provide up-to-date advice and solutions to customers using digital platforms.
9. Community Engagement: HSBC’s employees actively participate in community service and sustainability projects, reflecting the bank’s commitment to social responsibility. This involvement positively impacts communities and enhances the bank’s reputation among consumers.
10. Feedback Mechanisms: HSBC has mechanisms for collecting and analyzing customer feedback regarding their interactions with bank employees. This feedback is used to refine training programs and improve the overall service quality continually.

HSBC Process Strategy

The “Process” element of the Service Marketing Mix refers to the methods and procedures used to make services efficiently deliver a service, encompassing the entire customer journey from initial contact to post-service support. For HSBC, the process aspect is fundamental to ensuring efficiency, customer satisfaction, and service quality. Here are several critical points about the “Process” aspect of HSBC:

1. Customer Onboarding: HSBC has streamlined the onboarding process, making it as smooth and efficient as possible. This includes digital account opening, simplified documentation, and quick verification processes to enhance customer convenience.
2. Service Delivery Channels: HSBC offers multiple channels for service delivery, including branches, online banking, mobile apps, and call centers, ensuring customers can access services how and when they prefer.
3. Transaction Processing: The bank employs advanced technology to ensure secure and swift transaction processing. This includes real-time transactions, digital wallets, and contactless payments, enhancing the customer experience.
4. Customer Relationship Management (CRM): HSBC uses sophisticated CRM systems to manage customer interactions and data throughout the customer lifecycle. This helps personalize services, promptly address customer needs, and build long-term relationships.
5. Compliance and Security Processes: HSBC emphasizes compliance and security, incorporating strict processes to protect customer data and prevent fraud. This includes encryption, two-factor authentication, and regular security audits.
6. Feedback and Resolution Mechanisms: The bank has established processes for collecting customer feedback and resolving complaints. These mechanisms ensure that customer feedback is promptly addressed, leading to continuous service improvement.
7. Loan and Credit Processing: HSBC has an efficient process for loan and credit applications, including assessment, approval, and disbursement. The bank strives to make these processes transparent and customer-friendly, with clear communication on terms and conditions.
8. Wealth Management and Advisory Services: The bank offers personalized wealth management and advisory services, with processes in place to assess individual customer needs, risk profiles, and investment goals. This ensures tailored financial advice and solutions.
9. Digital Innovation and Automation: HSBC continually invests in digital technologies to automate and improve processes. This includes AI-driven chatbots for customer service, automated investment advice, and blockchain for secure, efficient international transactions.
10. Training and Development: Recognizing the importance of skilled staff in delivering high-quality services, HSBC has robust training programs. These ensure employees are well-versed in bank processes, technology, and customer service excellence.
11. Sustainability and Social Responsibility: HSBC incorporates sustainability into its processes, aiming to reduce its environmental impact and contribute positively to communities. This includes green financing, paperless banking, and supporting sustainable projects.
12. Risk Management: The bank has stringent risk management processes, including credit risk assessment, market risk management, and operational risk controls. This ensures stability and protects the bank and its customers from financial uncertainties.

HSBC Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix refers to the environment in which the service is delivered and any tangible components that facilitate the service or help consumers evaluate the service quality before purchase. For global banking and financial institutions like HSBC, physical evidence shapes perceptions, builds trust, and reinforces the brand’s image. Here are several key points about the “Physical Evidence” aspect of HSBC:

1. Branch Design and Layout: HSBC branches worldwide are designed to be welcoming and professional, with a layout that ensures privacy and comfort for customers. The design often reflects the local culture while maintaining the global HSBC brand identity.
2. Banking Cards and Financial Documents: HSBC’s banking cards, account statements, and financial documents are designed with a distinct and recognizable aesthetic. These items are physical proof of the bank’s services and are crafted to convey security, reliability, and prestige.
3. Digital Platforms: While not physical in the traditional sense, HSBC’s online banking interfaces and mobile apps are designed to be user-friendly, secure, and reliable. The look and feel of these digital platforms contribute to the physical evidence through their visual design and functionality.
4. Marketing and Promotional Materials: HSBC uses high-quality marketing materials, including brochures, flyers, and advertisements. These materials are professionally designed to align with the bank’s branding and help convey the quality and range of services offered.
5. ATMs and Self-Service Kiosks: The bank’s ATMs and self-service kiosks are strategically placed in accessible and secure locations. They are designed to be easy to use, with clear instructions and a secure environment, reinforcing the bank’s commitment to customer service and accessibility.
6. Signage and Branding: The HSBC logo and its distinctive red and white color scheme are prominently displayed at branches, ATMs, and advertising. This consistent branding helps build recognition and trust among customers.
7. Corporate Headquarters and Offices: The design and location of HSBC’s headquarters and offices reflect the bank’s status as a leading global financial institution. These buildings often become landmarks in their cities, contributing to the bank’s prestige.
8. Website and Online Presence: HSBC’s official website and its presence on social media platforms are considered part of physical evidence. They are carefully managed to ensure they convey professionalism, offer valuable information, and provide customer support.
9. Customer Service and Interaction Points: How employees dress, the technology used for customer interaction, and the overall customer service experience are all tangible aspects that customers use to judge the quality of HSBC’s services.
10. Security Features: Visible security features in branches, such as surveillance cameras and security personnel, give customers a sense of safety and trust in the bank’s ability to protect their assets and personal information.
11. Community Engagement and Sponsorship: HSBC’s involvement in community projects, cultural events, and sponsorships also shows the bank’s values and commitment to social responsibility. These activities help enhance the bank’s reputation and customer loyalty.

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