4.3.2 niche market

what is culture diversity

• recognition that groups of people across the globe have diffrent interest / values

what is culture sensitivity

understanding that people all people all over the world have diffrent interest + values

What impact does international business communication have

• being sensative to cultural diversities in communication → smooth international b .

What is a global niche market

• small market in each country , but the combination of all countries together makes enough D to make the b profitable

• highly specialised + charectrostics by loyal customers + premium prices

what is the benefit of selling in a global niche markets

There is less competition and greater customer loyalty in niche markets.

·Prices are likely to be higher and therefore profits may be greater.

Risk may be reduced - why? ·Specialist products reduce PED and premium prices may be possible

What is the drawback of selling In a global niche market

·If niche market has too many customersit may attract the attention of the larger companies and make it harder for small companies to compete Co-ordination and communications may be more difficult across differing brands and markets Some products may require unique ingredients or production techniques reducing the scope for economies of scale

Features of a global niche market ;

• Customer experience ; consumers pay higher prices so expect exceptional customer service

• Innovation ; highly difrenciated p + USP that meets need of target market

• Prioritising profit over MS ; niche markets are lucrative , b focus on profit so can reinvest into improving p/s

features of global niche market

• expertise in p area ; highly skilled e builds value for consumers

• quality ; exceptional quality as targeting wealthier consumers who pay for high value p

• understanding of wants + needs

What is the pricing strategies in a global niche market

• this allows charge premium prices especially as p is more unique but ultimately depends on consumers perception

Place ( distribution ) in a global niche market

• niche p reach global audience through websites , agencies can be used , enter joint venture

• involves chossing distribution stragetie that is convenient for target audience

promotions in a global niche market

• promotion is contamination aspect of marketing functions

• promotions are more targeted + subtle , but must be able to reach across cultures being careful not to devalue brand image by disocunting

• Involves market strategies that resonates with target audience

Product in a global niche market

• can modify features of p to meet specific needs of target audience