4.3.2 Global niche markets Flashcards

1
Q

global niche markets

A

a global niche market is a market where customers in many countries have specific needs and wants that are not satisfied by mass market products or services.

  • A very small market in each country but the combination of all the countries together make enough demand to make the business profitable
  • A global market niche is a subset of a global market
  • Highly specialised and is characterised by very loyal customers and premium prices
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2
Q

Strategies to target global niche markets

A

Online presence
Management of employees
Glocalization
Market Research

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3
Q

cultural diversity

A

means a range of different societies or people of different origins, religions and traditions all living and interacting together

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4
Q

Factors that influence cultural diversity

A
  • economic development
  • language
  • history and traditions
  • religions and social norms
  • weather and climate
  • attitudes to outsiders
  • legal systems
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5
Q

Factors that influence cultural diversity - economic development

A
  • Economic development – disposable incomes, health and education standards

Purchasing power of consumers in a country, for pricing strategy, middle class or developing country

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6
Q

Factors that influence cultural diversity - Language

A

-Language

Needed for large businesses, to be able to build a relationship with customers, needs to be accurate

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7
Q

Factors that influence cultural diversity - history and traditions

A

Diets and lifestyles, inappropriate or offensive branding or promotion can damage a businesses reputation

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8
Q

Factors that influence cultural diversity - religions and social norms

A

Offensive branding or promotion can damage reputation and relationship with customers

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9
Q

Factors that influence cultural diversity - weather and climate

A

It has to be suitable for the climate in order to be successful, so may have to alter product to fit it

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10
Q

Factors that influence cultural diversity - attitudes to outsiders

A

Cause cultural clash and tensions
Walmart tried to enter Germany however the two cultures didn’t go well – lost $1bn after struggling to covert the country’s shoppers and regulators to its low price, American style trading

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11
Q

Factors that influence cultural diversity - legal systems

A

Needs to fit to regulations to avoid any fines or law breaking
For any joint ventures

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