4.3.2 Niche Markets

• Cultural diversity


  recognises the ideas, customs and social behaviour of a particular people or society in different global markets 
• • Businesses need to take into account the different cultural behaviours and customs when operating in overseas markets
• Global niche markets


  • Small segments of the global market
  • Characterised by unique and specific needs and preferences
• Subcultures


  Groups of customers within global niche markets
• These groups may be very small within an individual country, however when combined across the world the number of customers may be significant
• Features of GLOBAL NICHE MARKETS

  
• What are the features of global niche markets?

  • Clear understanding of the wants and needs of customers
  • Emphasis on quality
  • Expertise in product area
  • Prioritising profit over market share
  • Innovation
  • Excellent customer service
• Excellent Customer Service

  As customers are usually paying higher prices for the product/service they expect exceptional customer service
• Innovation

  Innovation ensures that products are highly differentiated and maintain a unique selling point (USP) that meets the needs of the target market 
• Prioritising profit over market share

  Niche markets are lucrative and businesses focus on increasing profits that they can re-invest into improving their products/services  
• Expertise in product area

  Having employees that are highly skilled and keeping up to date with the latest developments within the niche market helps to build value for the customers
• Emphasis on quality

  Businesses need to ensure the quality of the product is exceptional as they are targeting wealthier customers who pay for high value products
• Clear understanding of the wants and needs of customers

  The business may have relatively few customers so needs to ensure that the needs/wants of these customers is fully understood
• Adapting the Marketing Mix to suit Global Niches

  • Involves tailoring the 4Ps of marketing (product, price, place, and promotion) to meet the specific needs and preferences of a particular niche market
• Product

  One way to adapt the product to suit a global niche market is to modify the features of the product to meet the specific needs of the target audience. E.g. A business that produces luxury watches can offer a line of vegan watches for consumers who are looking for high-quality and exclusive products that are also cruelty-free
• Price

  • Adapting the price to suit a global niche market involves offering a pricing strategy that is attractive to the target audience
  • E.g. A business that produces organic products can offer competitive prices similar to mainstream products to attract consumers who are looking for healthy and sustainable options. Alternatively, a business that produces sustainable fashion can offer a premium pricethat reflects the exclusive and high-quality nature of the product
• Promotion

  • Adapting the promotion to suit a global niche market involves using marketing communication strategies that resonate with the target audience 
  • E.g. A business that produces luxury products can use influencer marketingto communicate the exclusivity of the product to wealthy customers
• Place

  • Adapting the place to suit a global niche market involves choosing a distribution strategy that is convenient for the target audience
  •  E.g. A business that produces gluten-free products can distribute them through local specialty stores and online platforms to reach customers