4.3.2 niche markets Flashcards
what is cultural diversity
Cultural diversity is the range of different peoples within a society, which may be based on ethnicity, beliefs or other similar factors.
This means that different people hold different values and society attempts to take into account all peoples’ values in order to create a just and fair world.
global market niches are……
are subcultures in world society. These share common interests and can be identified as market segments on a global scale.
Although a niche targets a smaller market, on a global scale this can be sizeable.
This is particularly profitable when we recognise that these are likely to be highly differentiated products rather than low cost.
This means that the world’s wealthiest consumers can be targeted, with the quality of the product being the most important factor.
Other common features of global niche markets include
Require high levels of customer service as demanding customers pay for quality not quantity
Highly skilled employees with the expertise and, at times, the reputation required to create and sell the desired products
Product innovation is essential in order to produce the highly differentiated products that customers require
A high level of market research is required in order to understand the specific needs of the market on a global basis
Application and adaptation of the marketing mix (4Ps) to suit global niches
product
Product -will be the most important factor. The quality must be extremely high in order to target wealthier individuals on a global basis.
This means that businesses must undertake significant market research and research and development in order to meet customer requirements.
Application and adaptation of the marketing mix (4Ps) to suit global niches
price
Businesses will be able to charge high prices as they are targeting the world’s wealthiest consumers. In essence, price is not an important factor to the consumer.
The high levels of disposable income that people have mean that, although sales volume is low, there is significant added value for each product sold.
Application and adaptation of the marketing mix (4Ps) to suit global niches
promotion
Global promotion will be targeted through niche channels. This may be through specific social media as the target market are likely to be up to date with the very latest social media. However, it could be very carefully planned and specifically targeted, with one to one service provided to meet the needs of demanding clients.
Application and adaptation of the marketing mix (4Ps) to suit global niches
place
place will be through carefully selected channels. It may well be that the business goes to the client, offering high quality individual customer service.
