Executive Summary
The basic aim of caring out this research is to determine the level to which the prospective customers know about HSBC, via its present publicity methods, evaluate the response of customers to the methods of advertisements utilized by other banks, determine what persuades a customer to decide on which bank to operate with, and to determine the prevailing image of HSBC. After these key determinations, the bank intends to see how the deductions made can be used to increase its market share. Various methods will be used in conducting this research; prominent among the methods will be the conduction of interviews and the administering of the questionnaire. The final data from the research will be analyzed using SPSS.
Background Information
The bank HSBC (Hong Kong and Shanghai Banking Corporation), as it was then popularly been referred to, was formed in 1865. The group HSBC Holding took off in 1990, the forming of the group was prompted by the management’s desire to buy the Midland Bank. One of the prerequisites for HSBC’s purchase of the Midland Bank was that the bank will change or move its headquarters to London. Norman Forster planned and did the design of the bank’s new head office. Afterward the bank embarked on some major acquisitions that projected it as one of the best banks in the UK. Though a major player in the industry at the time-poor advertisement caused it to close down its finance unit in the USA, resulting in a decline in the banks’ market share, this was during the subprime crisis.
The Existing Condition, that Prompted this Marketing Research
To date, HSBC does not operate a department that is charged with the responsibility of marketing. This has greatly affected the degree to which the bank carries out its advertisement campaigns around the country, using the various Media. As a result of this, most of the people who are new in the business world Know little or nothing about the bank and the services that are offered by them. The newcomers in the business world therefore patronize the banks that are always on one form of the media or the other advertising.
The services offered by HSBC are usually promoted by personal selling or marketing to the prospective customers. The reason for the use of this method is that, through the marketing of services personally, promotional massages are designed to suit or fit prospective customers, persuading them to operate with the bank, and making it possible for the potential clients to get directly, every information about the services rendered by the bank( HSBC, 2003).
Another method employed by the bank in promoting its services is through the sponsor of co-operating events that touch the lives of the people, this is in an attempt at proving to the general public that they genuinely care about their welfare. All these promotional methods have not been effective in persuading the potential customers to join the bank.
Literature Review
The banking industry has in the last decade changed in no small measure. One of the major factors that have given rise to this change is intense competition by the operators, deregulation, and a declining primary demand for the financial industry. Hornby (1998) states that “financial competition has made financial Institutions come up with different strategies, like introducing new innovative services, and products to retain their customers. However when a bank comes up with an innovation, the competing banks and financial institutions are most likely to copy”.
This can also be viewed in the United States financial market, where almost all banks have introduced internet and mobile banking services as a show of innovativeness and as a bait to lure customers. These services were not common until recently.
HSBC has a target, which is to grow its quarter of the market share. This is a daunting task indeed, since most of the banks’ competitors have successfully used the media in promoting their services, thus having an edge over HSBC, in terms of public trust. As a result of the increased demand for the banking industry, to be major player banks have to do better regarding their images and embarking on massive promotion, in order to increase their market share (HSBC, 2003).
Bloemer, et al (1998) suggested that. “Noting the institutional necessary publics, finding out how stakeholders rate the bank, Identifying misunderstood facts and information, ensuring that corporate finances are properly managed, improved Communication channels, overtime and its effect to the image of the bank”. Are necessary for determining how bank’s image is viewed.
Problem Definition
This present situation can be viewed from two perspectives, one as a problem and secondary, it can be seen as an opportunity to the bank.
Decision Problem
The key objective of those in authority at HSBC is to evaluate the situation, and see if the bank’s market share can be increased.
Research Problem
This is making reference to the key areas, which will be considered in the study. This study will be basically centered on the success of the products and services that are presently been rendered by the bank and the research will also evaluate the success of the present methods of advertisement used by the bank.
Research Objectives
- To evaluate the reaction of customers to the methods of advertisements utilized by other banks.
- To determine what persuades a customer to decide on which bank to operate with.
- To determine the prevailing image of HSBC.
- To determine how satisfied the present customers are.
Research Design (Qualitative Research)
The management staff of HSBC, the workers in various departments, and the existing customers will be the principal data source for the research, the data of which will be collected from those mentioned above through communication. Zikmund, (2003) defined communication as referring to “when a person sends a message to another person, and then gets feedback from such a person about the message they sent”. This will enhance researchers understanding of customer behavior. Observation, (which is “the systematic process of recording the behavioral patterns of people, objects, and occurrences as they are witnessed” (Zikmund, 2003, p 723)), is deceptive in determining customer behavior.
The use of communication will present the researchers with the facts of the bank’s actual problem, the bank’s survival techniques and the determinant factor in customer decisions. Communication will be achieved through individual or group interviews. Individual and group interviews are usually unstructured and are dependent on what the researcher wants to find out.
Interviews
Conducting interviews, that are focused on particular groups, enhances the researchers’ chances of getting more genuine answers. In this present situation, since it will be very difficult to assemble the customers in a group, it is wiser to conduct depth interviews.
Those that will partake in these interviews will consist basically of individuals that operate an account with one bank or the other. The selection of this group of people will enable the researcher determine their likes, and dislikes regarding the banks they currently operate with. This information will be utilized by the researcher in determining what HSBC needs to do and not to do in order to increase its market share. The majority of those that will be interview will be working-class people, businessmen, and managers of other establishments. Basically, from the age of 25 years upward. Consideration will also be given to aged retired people (75 and above).
Quantitative Research
Three different scales of measurement will be utilized in the developed questionnaire. Nominal scale, ordinal scale, and interval scale, these scales will be utilized in getting various responses from the respondents.
Thirty (30) people will be administered the questionnaire. Those to whom the questionnaire will be given will be between the ages of 18-75, and they will consist of basically business people. Consideration will be given to students above 16 years with bank accounts. Retired individuals with bank accounts will also be given the questionnaires. The number of questions to be answered by the respondents will be 23, and 2-5 minutes will be required for the answers to be given. The key reason for handling out the questionnaire will be to assist the researcher determine, the perceived service rendered by HSBC as compared to other financial institutions, and how successful their method of service promotion is.
Data Analysis
After the research will be completed, the analysis of data will be carried out with the use of SPSS. This is because; this method of data analysis enhances business processes. This is achieved by directing, and automating the decisions taken throughout the establishment (Market Intelligence, 2003).
Reporting
After analyzing the data collected using SPSS, a report will be written. An official presentation of the deductions and conclusions will be presented to the management. And finally a comprehensive copy summarizing every stage of the research will be uploaded through mail.
Reference
Bloemer, J., Ruyter, K., Peeters, P.,1998. Investigating Drivers of Bank Loyalty: The Complex Relationship Between Image, Service Quality and Satisfaction. International Journal of Bank Marketing, 16, 276-286.
Commercial Bank of Africa. Personal Current and Saving Accounts [Brochure]. Nairobi, Kenya: CBA.
Hornby, A., 1998. Oxford Advanced Learner’s Dictionary, Special Price Edition, China: Oxford University Press.
HSBC., 2003.The Making of the Modern HSBC Group, Web.
Market Intelligence, 2003. The MI Banking Survey. Web.
Zikmund, W., 2003. Exploring Marketing Research. Ohio: Thomson South-Western.