Demand-side factors in global markets

Why do firms need to consider cultural differences when operating globally?

To meet local preferences and avoid offending consumers, ensuring business success.

Give an example of a firm adapting to cultural differences.

McDonald’s in India does not serve beef due to cultural beliefs and offers alternatives like chicken or vegetarian burgers.

It may fail to grow in that market due to lack of consumer acceptance.

Why must firms ensure accurate translations in marketing?

To avoid unintended meanings that could be misleading, offensive, or humorous.

To avoid unintended meanings that could be misleading, offensive, or humorous.

What can happen if translations are inaccurate?

Consumers might misunderstand the product, reducing sales and damaging brand reputation.

What is a mass market?

A large group of consumers with general needs, e.g., fast food chains.

What is a niche market?

A smaller, specialised market catering to specific consumer needs, e.g., Italian restaurants.

Why is a niche market often more profitable?

Targets consumers directly, leading to higher demand.

Allows for product differentiation and higher pricing.

How do firms use niche markets to expand globally?

By identifying unique cultural needs and adapting their products to fit those markets.