4.3.2 Niche Markets Flashcards
What is a niche market?
A niche market is a small specialised market which caters for a particular product or service.
What does having cultural sensitivity entail?
Having cultural sensitivity, means understanding that people all over the world have different interests and values.
How does cultural sensitivity effect international business communication?
Having a sensitivity to cultural diversity in communication is the key to smooth international business, e.g. a Business greeting in Japan would be a bow.
What are some diversity issues in the workplace?
-Sexism
-Ageism
-Discrimination
What is a global niche market?
A global niche market is a very small market in each country, but the combination of all the countries together make enough demand to make the business profitable.
What are the advantages of selling in a global market niche?
-Less competition + greater customer loyalty.
-Prices + profits may be higher.
-Risk may be reduced
-Specialist products reduce PED + premium prices may be possible.
What are the disadvantages of selling in a global market niche?
-EOS may not be achievable due to each market needing individual attention.
-Communication + co-ordination may be more difficult.
-Unique ingredients/production techniques reduce the scope for EOS.
What are the 4Ps?
1.) Product
2.) Price
3.) Place
4.) Promotion
What type of products do we find in a global niche market?
Products that succeed in global markets are usually at the premium end of the market.
What is a common pricing strategy in a global niche market?
Global niche markets provide an opportunity for businesses to charge premium price as products are unique.
How is place apparent in global niche markets?
Niche products can reach a global audience easily thorough websites.
Alternatively agents may be used.
How is promotion used in a global niche market?
-In a global niche market the promotion may be more targeted and subtle than in a mass market.
-The promotional message must be able to reach multiple cultures.
