Niche markets 4.3.2 Flashcards
What is a niche market?
A smaller segment of a larger market where customers have specific needs and wants.
What is cultural diversity?
Is the range of different people and their values within a society, which may be based on ethnicity, beliefs or other similar factors. Society attempts to take into account all people’s values in order to create a just and fair world.
What are global niche markets?
Global niche markers are similar to domestic niche markets in that they target a very specific range of people, though the key is to position a product so that it appeals to a wide range of customers across the global market.
What has cultural diversity got to do with global niche markets?
Cultural diversity recognises that the ideas, customs and social behaviour of a particular people or society vary in different global markets. Those businesses that cater for this will thrive but will struggle to identify exactly what niches in the market they have to fill. Those who don’t are likely to lose market share. Needs to take into account different values of the market in which the business is operating. Cultual diversity means taking into account different interests of potential customers.
How are global niche markets of subcultures of society?
Global market niches 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 costs. This means that the world’s wealthiest consumers can be targeted, with the quality of the product being the most important factor.
What are the common features of global niche markets?
- Requires 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 marker on a global basis.
- Prioritising profit rather than market share.
- Cost efficiency that is not at the expense of the quality.
What is the marketing mix?
The set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps - price, product, place and, promotion - make up a typical marketing mix.
How can the marketing mix be applied to global niche markets?
The marketing mix needs to be applied effectively to global niche markets in order to be of use to the business. A business will have to invest in each element of the marketing mix numerous times in order to meet the requirements of the variety of consumers that they are targeting. This will require expertise and insight into these specific markets.
How can the product be linked to the global niche markets?
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 R&D in order to meet customer requirements.
How can the price be linked to the global niche markets?
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.
How can promotion be linked to the global niche markets?
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.
How can the place be linked to the global niche markets?
The place will be through carefully selected channels. It may well be that the business goes to the client, offering high-quality individual customer service.
