4.3.2 Niche Markets

Question 1

Define global niche market

Answer 1

Made up of several small niche markets from different countries

Question 2

Advantages of global niche markets

Answer 2

1. Less competition and high customer loyalty
2. Products are usually price inelastic so they can charge higher prices
3. Risk can be spread

Question 3

Disadvantages of global niche markets

Answer 3

1. Less likely to achieve EOS
2. Low sales volume
3. High profits may attract competition, therefore reducing market share

Question 4

What is cultural diversity?

Answer 4

The presence of different cultural groups in society

Question 5

How can products sold in global niche markets meet specific customer needs?

Answer 5

Different cultural groups have different values and interests, so their needs are not met by the global mass market.

Question 6

Adapt the 4Ps to global niche markets

Answer 6

Product - they are differentiated to meet specific needs
Promotion - used to highlight the product’s USP
Price - charge premium prices due to price inelastic products
Place - selling products globally