4.3 Flashcards
Global niche market
Smaller segment of a larger market where customers have specific needs and wants
- Understanding of customers/market
- High customer service levels
- Expertise in business field
- Profit>market share
Global niche markets pros and cons
Advantages:
+ Less competition than mass markets
+ Charge higher prices for products
+ Reduced risk, target audience and customers are more easily identified
Disadvantages:
- My be more risky as they rely on less customers
- Reduced economies of scale as it is unlikely that they will bulk buy
4Ps
Product: Taste of food, electrical components, regulations
Price: Tariffs, taxes, foreign incomes
Place: Type of job/shops visited
Promotion: Reconsidering promotional campaigns etc.
Cultural diversity
Recognition that groups of people across the globe have different interests and values
Cultural/social factors
What a business must consider when marketing:
- Language barriers
- Unintended meaning
- Inappropriate translations
Factors influencing cultural diversity in markets:
- Economic development
- Language
- History and traditions
- Religious and social norms
- Weather and climate
- Attitudes to outsiders
- Legal systems
Ansoff’s matrix
Market penetration: Take a greater share of an existing market with existing products (Existing product, existing market)
Product development: Extending an new product within an existing market (New product, existing market)
Market development: Finding/Creating new markets for existing products ( Existing product, new market)
Diversification: Creating new product lines in new markets (New product, new market) Biggest risk
Approaches to globalisation
Ethnocentric: Goods are sold without adaptations (assumes what was a success in one market will be the same in another)
Geocentric: Maintain/promote global brand name but tailor products to the local market/culture (think global, act local)
Polycentric: Practises and services are sold adapted to other countries
Social cultural
Factors a business must consider:
- Language barriers
- Unintended meaning
- Inappropriate translation
Factors influencing cultural diversity:
- Economies development
- Language/legal system
- History and traditions
- Religious/social norms
- Wealth
- Climate
- Attitudes to ‘outsiders’
Glocalisation
Involves the development and sale of products to customers around the world which reflect specific local customs, tastes and traditions
Localisation
Strategies that adjust products to fit with target customers
Ethnocentrism
Belief in the superiority of one’s nation or ethnic group and evaluation of other cultures through preconceptions
