4.3.2

Question 1

Cultural diversity

Answer 1

A range of people of different societies or people of different origins, religions and traditions all living and interactive together

Question 2

Features of global niche marketing

Answer 2

Very small market in each country

A subset of a global market

Highly specialised

Question 3

Adaptation of 4Ps to suit global niches - Product

Answer 3

Global niche products often place an emphasis on quality.

Examples include luxury cars, watches and perfumes.

For example, Montblanc produces and sells exclusive pens, watches and luggage products that are sold around the world and are marketed as exclusive, desirable products.

For Virgin Atlantic, the key is to differentiate its standard product into something that demonstrates it is meeting the needs of niche customers.

Question 4

Adaptation of 4Ps to suit global niches - Price

Answer 4

The point of niche marketing is to charge higher prices by providing a product not intended for mass market.

The point behind such markets is the ability to charge premium prices.

Virgin Atlantic has the ability through its Upper Class package - to charge prices much higher than for its standard flight ticket.

Question 5

Adaptation of 4Ps to suit global niches - Promotion

Answer 5

Strategies to promote products to global niches are often based around the brand name and reinforcing the exclusivity of the brand, and need to be more targeted than in mass market promotion.

Consideration has to be given to the language differences that might exist between countries. For example, Dublin-based drinks distributor, C&C Group, marketed a brand of golden whiskey liqueur called Irish Mist to Germany.

However, in Germany the word mist is translated into a form of manure! The product needed to be rebranded.

Car companies often give different names to the same cars in different countries.

One problem with this need to be sensitive to national and cultural differences is that promotion costs will be higher, and this may impact on price and ultimately competitiveness.

Question 6

Adaptation of 4Ps to suit global niches - Place

Answer 6

Businesses serving niche markets are often more careful when selecting distribution channels for their product.

This is particularly important where exclusive brands are involved.

Networks of exclusive dealers are a common method of selling products to global customers. Mercedes-Benz has exclusive dealerships around the world.

Montblanc sells its products through an exclusive network of authorised retailers, jewellers and over 360 Montblanc Boutiques worldwide.