M RahmanMarketing mix of HSBC (7Ps of HSBC)
This article offers a detailed analysis of the marketing mix of HSBC (7Ps of HSBC). HSBC Bank, commonly known as HSBC, is one of the world’s largest banking and financial services organisations. It is headquartered in London, United Kingdom, and has operations in many countries.
HSBC’s mission is to open up a world of opportunity to create a better world for its stakeholders (HSBC, 2022). It focuses on providing customers with a comprehensive range of products and services. It has indeed one of the most extensive international networks in the world.
Components of the marketing mix of HSBC (7Ps of HSBC)
The 7Ps of HSBC’s marketing mix are product, price, place, promotion, people, process, and physical evidence. Each of these elements is important for the bank to create a successful marketing strategy.
Products of HSBC
HSBC offers a wide range of banking and financial services, such as personal banking, businesses banking, corporate and institutional banking, private banking, investment banking, wealth management, insurance, and credit cards.
HSBC’s business banking services include current accounts, savings accounts, credit cards, small business loans, flexible business loans mortgages, commercial cards, and investments.
HSBC’s corporate banking services include corporate finance, trade finance, foreign exchange, and cash management. These services are currently available in 53 countries and territories (HSBC, 2023).
HSBC’s private banking services include wealth planning, investment management, residential mortgages, and trust services. Online purchases with its debit cards and credit cards are secured through additional verification with MasterCard (MasterCard secure code) and Visa (Verified by Visa).
Pricing strategy of HSBC
Pricing is a very important component in the marketing mix of HSBC (7Ps of HSBC). HSBC has a competitive pricing strategy that is designed to give customers the best value for their money. It also offers promotional offers and discounts on its products and services.
HSBC also offers interest-free credit cards to its customers. Its Plus Credit Card has up to 20 months of interest-free purchases and up to 17 months of interest-free balance transfers, while its Premium Credit Card offers travel benefits and reward points. It also has 9 months interest free on purchases and 18 months interest free on balance transfers (HSBC, 2023).
Place strategy of HSBC
HSBC has an extensive international network of offices and branches. It has a network of thousands of offices that serve around 40 million customers in 63 countries and territories (HSBC, 2023).
HSBC also has a network of ATMs, which allows customers to access their accounts and make transactions at any time of the day. These are free Allpoint ATMs that are available worldwide.
HSBC also offers online banking services, which allow customers to access their accounts and make transactions from anywhere in the world. However, it had to apologise to its UK customers recently as both of its personal and business online banking services were affected by technical glitches (BBC, 2022).
Promotion strategy of HSBC
Promotion is also an important element in the marketing mix of HSBC (7Ps of HSBC). HSBC also uses digital platforms such as social media to reach customers. It also sponsors a number of events and activities, which help to create brand awareness.
HSBC offers promotional offers and discounts on its products and services. It is also a partner to different Olympic sports such as golf, rugby, tennis, badminton, and football that is very helpful gain further global exposure.
HSBC spends millions of US dollars on advertising a year. However, some of its adverts were banned by the UK’s Advertising Standards Authority (ASA) as they were considered misleading. This was blow to its green credentials (Makortoff, 2022).
People at HSBC
HSBC’s people are one of its most important assets. It has a highly experienced and dedicated team of professionals who are committed to providing customers with world-class banking services.
HSBC has around 219,000 employees who are committed to providing customers with the best possible service and advice. However, it had to suspend a senior banker who referred to climate crisis warnings as ‘unsubstantiated’ (Makortoff, 2022).
Process in HSBC
Process is another important element in the marketing mix of HSBC (7Ps of HSBC). HSBC also has a number of processes in place to ensure the safety and security of its customers’ data. It has implemented a number of security measures, such as two-factor authentication, encryption, and data protection policies.
The process in HSBC is based on its efficient and secure banking infrastructure. It has invested heavily in its IT infrastructure, which is designed to ensure the highest levels of security and reliability.
Physical evidence of HSBC
The physical evidence of HSBC is its extensive network of branches, offices, ATMs, website, app, red and white logo, debit and credit cards, paperwork, brochures, and so on. These appeal to the customers well and very useful for their satisfaction and loyalty.
Summary of marketing mix of HSBC (7Ps of HSBC)
In conclusion, the marketing mix is an important element in HSBC’s success. The bank has a wide range of products, a competitive pricing strategy, an extensive international network, a strong promotion strategy, and a highly experienced and dedicated team of professionals.
HSBC’s people are one of its most important assets. They are committed to providing customers with world-class banking services. Likewise, its physical evidence is praiseworthy as well.
HSBC also has a number of processes in place to ensure the safety and security of its customers’ data. It also has a network of branches and offices, as well as ATMs and online and mobile banking services.
All these elements combined make HSBC one of the world’s most successful banking and financial services organisations. However, as stated above, it marketing strategy has some limitations as well.
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Last update: 12 January 2023
Reference list:
BBC (2022) HSBC UK online banking back after disruption, available at: https://www.bbc.co.uk/news/business-63522596 (accessed 30 December 2022)
HSBC (2023) About us, available at: https://www.about.hsbc.co.uk/ (accessed 12 January 2023)
Makortoff, K. (2022) Watchdog bans HSBC climate ads in fresh blow to bank’s green credentials, available at: https://www.theguardian.com/business/2022/oct/19/watchdog-bans-hsbc-ads-green-cop26-climate-crisis (accessed 27 December 2022)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
