4.3.2 Global niche markets

Question 1

What are the features of global niche markets?

Answer 1

• Understand customer tastes in a market segment.
• Emphasis on quality.
• Excellent customer service.
• Prioritise profit, not market share.

Question 2

How do the 4p’s help to differentiate a business from a mass market business in a global market?

Answer 2

Price- Charge a premium price due to high quality.

Product- Products are luxury and desirable.

Place- Use exclusive dealers.

Promotion- Products are promoted using the brand name and need to be more targeted.

Question 3

What are the advantages and disadvantages of operating in a global niche market?

Answer 3

Adv
- Higher prices.
- Demand is more price inelastic.
- Product distributed through specialist dealers or directly to the consumer. Products are more desirable if they aren’t mainstream.

Dis
- Products are sold in lower volumes than mass markets.
- Lack EOS compared to competitors, less competitive.