4.3.4 Niche markets Flashcards
What are the features of businesses that operate in global market?
- a clear understanding of the needs and wants to the market
- an emphasis on quality
- excellent customer service
- expertise in the product area
- prioritising profit rather than market share
- innovation
Why is the internet and e-commerce an important marketing tool?
These have proved an important marketing tool and an opportunity to spread information. With the advert of e-commerce , businesses have been able to spread into foreign markets, and create and meet local demands that would otherwise have been impossible.
Why is social media an important marketing tool?
The rise of platforms such as Facebook, Twitter and YouTube has given birth to a new brand of commentators known as ‘vloggers’. Vloggers are growing group who promote niche brands to subscribes.
Why is ease of travel an important marketing tool?
- facilitated by low-cost airlines. The world , in a real sense , has become a smaller place. Visitors to foreign countries are exposed to well- known brands , in a place far away from their home country.
Advantages of niche marketing
- Prices are higher than in mass markets - demand is more price inelastic.
- The product is distributed through specialist retailers or directly to the consumer. This has advantages in terms of image.
- for example the billabong surfer image might be compromised if sold widely in supermarkets.
Disadvantages of niche marketing
- Products sell in relatively low volumes ( compared with mass markets ) , so profits need to be high enough to make it worthwhile,
- the niche market must be large enough to support the business and specialist distribution.
- the small size may prevent economies of scale that compete with larger competitors.
What is global niche market
Customers who live in more than one country and have particular needs that are not met fully by the global mass market.
What is a niche market?
A niche market is a small specialised market which caters for a particular product or service.
What is cultural sensitivity?
• Having cultural sensitivity, means understanding that people all over the world have different interests and values
What are cultural differences?
• The greeting rituals are very important in international business, getting it right can set the tone for the whole negotiation
What is cultural diversity?
• The phrase ‘Cultural
Diversity’ means a range of different societies or people of different origins, religions and traditions all living and interacting together.
How do Products affect global niche markets?
• Products that succeed in global markets are usually at the premium end of the market
• A prime example is supercars which appeal to only a small subset of a country’s population, but bought by customers in many countries
What is Pricing strategy in a global niche market
• Global niche markets provide an opportunity for businesses to charge premium prices as the products tend to be more unique
• It depends on customer perception, as they will pay what they perceive the product to be worth not its actual value in terms of raw materials
What is Place (distribution) in a global niche market
• Niche products can reach a global audience easily thorough websites
• Alternatively agents may be used in other countries apart from the host country e.g. Bentley showroom in Dubai which includes a VIP area
What is promotion in a global niche market
• Promotion is just the communication aspect of the entire marketing function.
• 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 across cultures
