TERM PAPER MGT-631

TOPIC-Service encyclopaedia of HSBC Bank.

Submitted by Guided by

CHANDAN KUMAR SINGH Miss Jaspreet Kaur

Section-B

Roll number –RT1902-A-27

Reg No:- 10903162

Table of Content

S. No. Topic Page

No.1 Acknowledgement 03

2 Objective of the study 03

3 Executive summary 03Introduction of HSBC Bank in India

4 Services Marketing Environment 045 Services Marketing Mix 04

The Service Segmentation 056 Customer Requirements & Customer Expectations 067 Quality Concerns 088 Integrated Gaps Model of Service Quality 0909 Drafting Service Blueprint 23

Drafting Service Recovery Strategies

Designing Service Blue Print and Setting Standards

Drafting Positioning Maps

Designing Servicescape

Employee & Customer role in service delivery

.Integrated Services Marketing Communication

Pricing of Services

Delivering service through intermediaries

MANAGING WAITING LINES

10 Suggestion 24

11 Conclusion 24

12 Bibliography 25

12 Questionnaire for Customer 26

ACKNOWLEDGEMENT

I provide full justice to this term paper which is prepared by visiting various web-sites, magazines, articles etc.

I would like to take an opportunity to thank all the people in collecting the necessary information and making of the report. I am grateful to all of them for their time and wisdom.

My project becomes a reality only due to cooperation of many people who had helped me in completing this project. I sincerely extend my gratitude to Miss Jaspreet Kaur who has given me this precious opportunity to have known about the Customer Expectation.

Objective of the study.

To make the service encyclopedia of HSBC Bank. To know how the characteristics of Service provider influence the

Customer. Study the Service delivery process with respect to HSBC Bank. To understand the service delivery process of service sectors.

Introduction of HSBC Bank in India

In India, the introduction of HSBC Bank can be dated as early as the year 1853, with the establishment of the Mercantile Bank of India in Mumbai. Currently, HSBC Group operates through a number of its subsidiaries in India, viz. The Hongkong and Shanghai Banking Corporation Limited (HSBC), HSBC Asset Management (India) Private Limited, HSBC Global Resourcing / HSBC Electronic Data Processing (India) Private Limited, HSBC Insurance Brokers (India) Private Limited, HSBC Operations and Processing Enterprise (India) Private Limited, HSBC Private Equity Management (Mauritius) Limited, HSBC Professional Services (India) Private Limited, HSBC Securities and Capital Markets (India) Private Limited and HSBC Software Development (India) Private Limited. The group carries out its Commercial Banking, Banking Technology, Asset Management, Global Resourcing, Insurance and Data Processing operations in the country through its subsidiaries.

Service marketing environmentThe physical service environment plays an important role in shaping the service experience and delivering customer satisfaction.The Environmental scan is a useful tools to “provide, analyse and interpret a flow of relevant information about the bank markets, so that management and marketing decisions are made with the real knowledge and understanding”3 of all the Macro and

Micro aspects. “Marketing research is the search and utilisation of information from all available sources and its adoption to bank’s marketing needs”

Macro environmentThe Macro research shows that HSBC is operating in a global scale with many competitors. At this stage of scanning, by using the PEST analyse the HSBC Macro environment could appear in this way:

o Under a Political aspect HSBC is well aware of all different lows, regulations and codes of Practice that operates in the five areas that it work (policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability);

o from an Economical aspect HSBC in the past have found some obstacle with different exchange rates, inflations and low disposal incomes (the economic growth, interest rates, exchange rates and inflation rate);

o under a Social view HSBC has benefit from both cultural and demographic aspects (the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety);

o from Technological aspects HSBC is working well since is one of the most modernize banks in the world (ecological and environmental aspects and can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions).

A PEST analysis is useful for quick general analysis, which can later be easily extended into a more detailed analysis on each HSBC area of operation like: Europe, Asia-Pacific, Americas, Middle-East and Africa.

Micro environment

Marketing management’s job in HSBC is to attract and build relationships with customers by creating customer value and satisfaction. However marketing managers cannot accomplish this task alone but their success will depend on the other factors that are coming from the company’s Micro-environment like: suppliers, competitors, customers, distributors, intermediaries and publics.

The Micro environment describes the relationship between HSBC and the driving forces that control this relationship. It is a more local relationship, and HSBC may exercise a degree of influence.

Service Marketing Mix?Services Marketing Mix refers to the combination of marketing activities an organization engages in to promote and

sell intangible services, as opposed to tangible products. In addition to the four Ps of traditional product marketing--

product, price, place and promotion--the services marketing mix includes the three Ps of service marketing--people,

process and physical evidence. The Services Marketing Mix is also referred to as the Extended Marketing Mix.

Product – The HSBC Group offer different types of service. The product in service marketing mix is

intangible in nature. Service products cannot be measured. At the same time service products

are heterogenous, perishable and cannot be owned.

Place - Place in case of services determine where is the service product going to be located. In case

of banking sectors the bank location represent the place.

Promotion – Promotions have become a critical factor in the service marketing mix. Services are

easy to be duplicated and hence it is generally the brand which sets a service apart from its

counterpart.

Pricing – Pricing in case of services is rather more difficult than in case of products. But then who

will pay for the nice ambience you have built up for your customers? Who will pay for the band you

have for music? Thus these elements have to be taken into consideration while costing. Generally

service pricing involves taking into consideration labor, material cost and overhead costs. By adding

a profit mark up you get your final service pricing.

People – People is one of the elements of service marketing mix. People define a service. In banking,

sectors employees in your branch and their behavior towards customers defines you. In case of

service marketing, people can make or break an organization.

Process – Service process is the way in which a service is delivered to the end customer. When we

talk about the Hsbc banks we said that a customer came in banks and then go back after taking

services. That is the process of HSBC Bank.

Physical Evidence – The last element in the service marketing mix is a very important element. As

said before, services are intangible in nature. However, to create a better customer experience

tangible elements are also delivered with the service. In case of HSBC physical evidence are

Branches, Website, employee, Agent etc.

Service segmentation

  The market segmentation can help the marketing manager in determining the best marketing mix in

deploying and serving the unique segment. This process is the partitioning markets into the segments for

the potential customers and has the objective for improving the competitive position of the company

which can serve its customers for betterment

 The information technology is considered to be one of the major tools for the functionality scale

worldwide of the company. It has its own website and it also has the e-business for internet, interactive,

PC internet, and the telephone banking.

 The Market Segmentation is the center for the robust development of marketing strategy which involves

the identification of the customers’ perception, needs, expectation, and the buying behavior in order for

them to group homogeneously for the customers who can be satisfied as well as marketed to the similar

manner

The company has been open that the customers’ needs are important for their development and had been

done by dividing the customers in their location and with respect to their cultureLastly, this market

segmentation is considered to be generic wherein it greatly depends on the region for the several

subsidiaries of the location of HSBC and some of the strategies are put to good (Ibid, 2008).

 In the year 2003, the company had invested huge amount for proprietary relationship to the customers

and to their management system so that the customers are managed efficiently.

Customer requirements and Expectations The most of the people is using the service is more then 2 years. It show

that the consumer are satisfied with the services. When we analysis the data we found that 42% people said that Friends

influnce more than others. 24% people said that advertisement influenced. In the above we see that the consumer chose the mainly three factors which

are business, safety, and investment which are the main factors of consumer preference while selecting banking services.

Every consumer want to the better service so here the most four factors which is influence the consumer is follows:

Growth Availability Good Service Safety

When we talk about the customer expectation we know that in banking sector customer expected high service form his service provider. So we say that HSBC able to provide the better service to his customer.

Quality concernsQuality of service is a broad term that is used in both customer care evaluations and in technological evaluations. In both applications, the quality of service has to do with measuring the incidence of errors within a process that result in the creation of issues for an end user. The goal of any quality of service evaluation is to minimize the incidence of transmission issues and the error rates that may result.

1. Access - the ease and convenience of accessing the service(s).2. Communication - keeping your users informed; listening to your users.3. Competence - having the skills and knowledge to provide the service(s).4. Courtesy - politeness, respect, consideration, and friendliness of staff at all levels.5. Credibility - trustworthiness, reputation and image.6. Reliability - providing consistent, accurate and dependable service(s); delivering the

service that was promised.7. Responsiveness - being willing and ready to provide service(s) when needed.8. Security - physical safety; financial security; confidentiality.9. Tangibles - the physical aspects of the service such as equipment, facilities, resources.10. Understanding the customer - knowing individual customer needs.

INTEGRATED GAP MODEL OF SERVICE QUALITY

The 7 service quality gaps are:-1. The knowledge gap i.e. here HSBC should understand the customer expectation like bestEmployee and service to satisfied his customer. HSBC is getting feedback sessions and the best way is to converge those suggestions into action plan if possible and feasible, turn information into action.2. The standards gap i.e. Here LPU is taking serious actions. It allows most intelligentstudents to come and discuss the problems/opportunities, and then these are taken underconsideration. Also LPU is giving priority to those tasks which rank top in qualityconcerns. LPU should ensure that employees understand and accept goals and priorities.Reward employees for attaining quality goals which is lacking in LPU yet. Means servicestandards are set and communicated to all.3. The delivery gap i.e. here LPU should ensure that whether service performance meetsstandards or not. Train employees, take special lectures from senior and best faculty oroutsource the training part. Build team work and treat students as partial employees. Ms.Rashmi Mittal (madam) takes herself special lectures to meet students, discuss with them

and takes appropriate actions. All deans of schools also do the same task to be morestudent-oriented.4. Internal communication gap i.e. LPU should communicate only those promises whichare realistic. Like the best hostel facility, infra structure, faculty, yet faculty is not uptomark. But no doubt fee structure is comparatively low and affordable due to mass no. ofstudents getting admission and thus cost gets disseminated in all.5. Perception gap i.e. difference between what is delivered and what is received. This canbe overcome by taking positive feed back and keeping best faculty with updated coursecontent.6. Interpretation gap i.e. what promised and what student thinks was promised. This canbe overcome by proper and detailed information about various aspects of LPU and itsservices. Just presently LPU CAD employees are giving new students a round to therespective department, meets with the existing students and aware them about the realpicture.7. The service gap i.e. what students expect to receive and there perception of service thatIs delivered. Say students expect placement with good package (3-4 lac/annum) but inactual it doesn’t happen. Here the fault may be in student personality or the placementcell. As per my information LPU placement cell employees are working leaps and boundsto ensure that each student gets placed from campus placement drive. Unfortunately somestudents may not get placed and also the %age in final term is also a concern.

SERVICE RECOVERY STRATEGIESService recovery refers to the actions taken by an Organization in response to a service failure. Failure occurs for all kinds of reasons:

1. The service may be unavailable when promised2. it may be delivered late or too slowly3. the outcome may be incorrect or poorly executed4. employees may be rude or uncaring

All of these types of failures bring about negative feelings and responses from customers. The Impact of Service Failure & RecoveryAn effective service recovery strategy has multiple potential Positive impacts:

1. It can increase customer satisfaction and loyalty2. Generate positive word of mouth3. A well designed, well-documented service recovery strategy also provides

information that can be used to improve service as part of a continuous improvement effort.

4. Making adjustments learned from recovery experiences, companies increase the likelihood of “doing it right first time”.

5. This ultimately reduces costs of failures and increases initial customer satisfaction.

Bank Service Recovery Strategies

Position mappingPosition Mapping organizes data to find patterns that help create useful frameworks. Position Mapping uses

qualitative axes to place data in a two dimensional space. Once the data is mapped, patterns, groupings and

hierarchies can be created to identify insights.

At its most basic level, Position Mapping consists of two non-dependent axes and many data points. Selecting the

axes is and essential part of the success of the framework because if the axes are too closely related, the patterns

may not yield interesting results.

ServicescapeServicescape is a concept that was developed by Booms and Bitner to emphasize the impact of the physical environment in which a service process takes place.Physical evidence may be likened to 'landscape'. It includes facilities exterior (landscape, exterior design, signage, parking, surrounding environment) and facilities interior (interior design & decor, equipment, signage, layout, air quality, temperature and ambiance). Servicescape along with other tangibles like business cards, stationery, billing statements, reports, employee dress, uniforms, brochures, web pages and virtual servicescape forms the 'Physical Evidence' in marketing of services.The service environment (or servicescape) consists of four dimensions._ The physical facility_ The location_ Ambient conditions_ Interpersonal conditions

The physical facility: The campus is spread in 600 ACRES, the largest areas compared to anyother private university in India. Lovely has the most hi-tech campus with WIFI. There are manybuildings where services are delivered to the students.The location: Lovely University Punjab is situated in lush green area about 15 kms fromJalandhar. The main hub of NRI’s. Ambient conditions: Lovely has well furnished rooms with audio visual medias in order tomake the services better. Interpersonal conditions: The persons which are responsible fordelivery of services to students are important components of service environment. The servicepersonal at Lovely University are really committed to provide best services for the students andguardians. They ensure that the services delivered by the university should make studentsdelighted so that they will achieve their goals in an efficient manner.

Employees' Roles in Banking Service DeliveryThe assumption is that even when customer expectations is well understood (Gap1) and services have been designed and specified to conform to those expectations (Gap2), there may still may discontinuities in service quality when the service is not delivered as specified. The role customers can play in services delivery is that of contributor to their own satisfactionand the ultimate quality of the services they receive. Customers may not care that they haveincreased the productivity of the organization through their participation, but they probably docare a great deal about whether their needs are fulfilled. Effective customer participation canincrease the likelihood that needs are met and that the benefits the customer is seeking are

• actually attained.

• INTEGRATING SERVICES MARKETING

COMMUNICATIONCommunication is always one of the most important and vital strategic areas of an organization's success. You can have the best or most innovative products or services, but if your internal and external communications are weak, then the demand for your products or services raises a personal flag of concern. When communicating the value of your products or services, you want to focus on how they will benefit your clients.

Integrated Marketing Communications is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. There are five basic tools of integrated marketing communication:

1. Advertising: 

This tool can get your messages to large audiences efficiently through such avenues as radio, TV, Magazines,

Newspapers (ROP), Internet, Billboards and other mobile technological communication devices. This method can

efficiently reach a large number of consumers, although the costs may be somewhat expensive.

2. Sales Promotion: 

This tool is used through coupons, contests, samples, premiums, demonstrations, displays or incentives. It is used to

accelerate short-term sales, by building brand awareness and encouraging repeat buying.

3. Public Relations: 

This integrated marketing communications tool is initiated through public appearances, news/press releases or event

sponsorships, to build trust and goodwill by presenting the product, company or person in a positive light.

4. Direct Marketing: 

This tool will utilized email, mail, catalogs, encourage direct responses to radio and TV, in order to reach targeted

audiences to increase sales and test new products and alternate marketing tactics.

5. Personal Selling: 

Setting sales appointments and meetings, home parties, making presentations and any type of one-to-one

communication, to reach your customers and strengthen your relationship with your clients, initiate this IMC tool.

PRICING OF SERVICESAttaching a fair and accurate price tag to your products and services can be a tricky balancing act. It should come as no surprise that many business owners have an ongoing struggle with setting their pricing strategies. Some use inappropriate approaches, for example, attempting to always be the lowest-priced player in the market, while others fail to change their approach to capitalize on market changes.

As you know, the success of your products and services relies directly upon your ability to sell them, which in turn is dependent upon your pricing strategy. If your prices come in too low, you won't make a reasonable profit. Go too high, and you may weaken the demand for your offerings. But the truth is you don't have to be a magician to get pricing right.

DELIVERING SERVICE THROUGH

INTERMEDIARIESService intermediaries perform many important functions for the service principal. First, they often coproduce the service, fulfilling service principals' promises to customers. Franchise services such as haircutting, key making, and dry cleaning are produced by the intermediary (the franchisee) using a process developed by the service principal (hence the phrase "coproducer"). Service intermediaries also make services locally available, providing time and place convenience for the customer. Because they represent multiple service principals, such intermediaries as travel and insurance agents provide a

retailing function for customers, gathering together in one place a variety of choices. In barter, an intermediary is a person or group who stores valuables in trade until they are needed, parties to the barter or others have space available to take delivery of them and store them, or until other conditions are met. In a larger sense, an intermediary can be a person or organization who or which facilitates a contractbetween two other parties. The university uses only some of the intermediaries like• Electronic channels• Agents at different places

• Franchisee

MANAGING WAITING LINEManaging waiting lines create a great dilemma for managers seeking to improve the return on investment of their operations. On the one hand, customers dislike waiting intensely. If they feel they are waiting too long at your firm for service, they will either leave the line prematurely or not return to your firm the next time they need service. This will reduce customer demand and eventually revenue and profit. Furthermore, longer waiting times increase costs because longer waiting times equal more customers in a firmís building. Hence, a firm will need more space for the customers to wait in, which increases rent.