Page 260 - Marketing Management

IDENTIFYING MARKET SEGMENTS AND TARGETS | CHAPTER 8 237

Applications

Marketing Debate Marketing Discussion
Is Mass Marketing Dead? Marketing Segmentation Schemes
With marketers increasingly adopting more and more re- Think of various product categories. In each segmentation
fined market segmentation schemes—fueled by the scheme, to which segment do you feel you belong? How
Internet and other customization efforts—some claim mass would marketing be more or less effective for you depending
marketing is dead. Others counter there will always be on the segment? How would you contrast demographic and
room for large brands employing marketing programs to behavioral segment schemes? Which one(s) do you think
target the mass market. would be most effective for marketers trying to sell to you?
Take a position: Mass marketing is dead versus Mass
marketing is still a viable way to build a profitable brand.

Marketing Excellence Japan with his Japanese counterparts. He is surprised
to find that rather than paying for a round of drinks in the
>>HSBC clubhouse, as in the United States, by Japanese custom
he must buy expensive gifts for his playing partners. In
another international TV spot, a group of Chinese busi-
nessmen take a British businessman out to an elaborate
dinner where live eels are presented to the diners and
then served sliced and cooked. Clearly disgusted by the
meal, the British businessman finishes the dish as the
voice-over explains, “The English believe it’s a slur on
your hosts’ food if you don’t clear your plate.” His
Chinese host then orders another live eel for him as the
voice-over explained, “Whereas the Chinese feel that it’s
questioning their generosity if you do.”
HSBC demonstrated its local knowledge with mar-
keting efforts dedicated to specific locations. In 2005 it
HSBC set out to prove to jaded New Yorkers that the London-
wants to be known as the “world’s based financial behemoth was a bank with local knowl-
local bank.” This tagline reflects HSBC’s positioning as a edge. The company held a “New York City’s Most
globe-spanning financial institution with a unique focus Knowledgeable Cabbie” contest, in which the winning
on serving local markets. Originally the Hong Kong and cabbie got paid to drive an HSBC-branded BankCab full-
Shanghai Banking Corporation Limited, HSBC was es- time for a year. HSBC customers could win, too. Any
tablished in 1865 to finance the growing trade between customer showing an HSBC bank card, checkbook, or
China and the United Kingdom. It’s now the second- bank statement was able to get a free ride in the
largest bank in the world. BankCab. HSBC also ran an integrated campaign high-
Despite serving over 100 million customers through lighting the diversity of New Yorkers, which appeared
9,500 branches in 85 countries, the bank works hard to throughout the city.
maintain a local presence and local knowledge in each More than 8,000 miles away, HSBC undertook a
area. Its fundamental operating strategy is to remain close two-part “Support Hong Kong” campaign to revitalize a
to its customers. As HSBC’s former chairman, Sir John local economy hit hard by the 2003 SARS outbreak.
Bond, stated, “Our position as the world’s local bank en- First, HSBC delayed interest payments for personal-loan
ables us to approach each country uniquely, blending local customers who worked in industries most affected by
knowledge with a worldwide operating platform.” SARS (cinemas, hotels, restaurants, and travel agencies).
Ads for the “World’s Local Bank” campaign have de- Second, the bank offered discounts and rebates for
picted the way different cultures or people interpret the HSBC credit card users when they shopped and dined
same objects or events. One TV spot showed a U.S. out. More than 1,500 local merchants participated in the
businessman hitting a hole-in-one during a round in promotion.