4.3.2 Global niche markets

Question 1

global niche markets

Answer 1

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

Question 2

Strategies to target global niche markets

Answer 2

Online presence
Management of employees
Glocalization
Market Research

Question 3

cultural diversity

Answer 3

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

Question 4

Factors that influence cultural diversity

Answer 4

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

Question 5

Factors that influence cultural diversity - economic development

Answer 5

• Economic development – disposable incomes, health and education standards

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

Question 6

Factors that influence cultural diversity - Language

Answer 6

-Language

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

Question 7

Factors that influence cultural diversity - history and traditions

Answer 7

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

Question 8

Factors that influence cultural diversity - religions and social norms

Answer 8

Offensive branding or promotion can damage reputation and relationship with customers

Question 9

Factors that influence cultural diversity - weather and climate

Answer 9

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

Question 10

Factors that influence cultural diversity - attitudes to outsiders

Answer 10

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

Question 11

Factors that influence cultural diversity - legal systems

Answer 11

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