4.3.2 Cultural Diversity

Question 1

What cultural diversity?

Answer 1

• Recognises the ideas, customs & social behaviour of a particular people or society in different global markets

Businesses need to take into account the different cultural behaviours & customs when operating in overseas markets

Question 2

What are global niche markets?

Answer 2

• Global niche markets are small segments of the global market that are characterised by unique & specific needs & preferences
• Groups of customers within these markets are sometimes referred to as subcultures

Groups of customers within these markets are sometimes referred to as subcultures

Question 3

What features are there of global niche markets?

Answer 3

• Clear understanding of the wants & needs of customers
• On emphasis on quality
• Prioritising profit over market share
• Innovation
• Excellent customer service

Question 4

How is excellent customer service a feature of global niche markets?

Answer 4

• As customers are usually paying higher prices for the product/service, they expect exceptional customer service

Question 5

How is innovation a feature of global niche markets?

Answer 5

• Innovation ensures that products are highly differentiated & maintain a unique selling point (USP) that meets the needsof the target market

Question 6

How prioritising profit over market share features of global niche markets?

Answer 6

• Niche markets are lucrative & businesses focus on increasing profits that they can re-invest into improving their products/services

Question 7

How is expertise in product are a feature of niche markets?

Answer 7

• Having employees that are highly skilled and keeping up to date with the latest developments within the niche market helps to build value for the customers

Question 8

How is emphasis on quality a feature of global niche markets?

Answer 8

• Businesses need to ensure the quality of the product is exceptional as they are targeting wealthier customers who pay for high value products

Question 9

How is clear understanding of the wants & needs of customers a feature of global niche markets?

Answer 9

• The business may have relatively few customers so needs to ensure that the needs & wants of these customers is fully understood

Question 10

How can ‘product’ help meet the specific needs & preferences of a particular niche market?

Answer 10

• One way to adapt the product to suit a global niche market is to modify the features of the product to meet the specific needs of the target audience

Question 11

How can ‘price’ help meet the specific needs & preferences of a particular niche market?

Answer 11

• Adapting price to suit a global niche market involves offering a pricing strategy that is attractive to the target audience

Question 12

How can ‘promotion’ help meet the specific needs & wants of a particular niche market?

Answer 12

• Adapting the promotion to suit a global niche market involves using marketing communication strategies that resonate with the target audience

E.g. a business that produces luxury products can use influencer marketing to communicate the exclusivity of the product to wealthy customers

Question 13

How can ‘place’ help meet th specific needs & wants of a particular ‘niche’ market?

Answer 13

• Adapting the place to suit a global niche market involves choosing a distribution strategy that is convenient for the target audience

E.g. a business that produces gluten-free products can distribute them through local specialty stores & online platforms to reach customers