Niche Markets - Application and adaptation of the marketing mix (4Ps) to suit global niches - 4.3.2

Niche market - A smaller segment of a larger market where customers have specific needs and wants.

Marketing mix - The set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps - price, product, place and, promotion - make up a typical marketing mix.

The marketing mix needs to be applied effectively to global niche markets in order to be of use to the business. A business will have to invest in each element of the marketing mix numerous times in order to meet the requirements of the variety of consumers that they are targeting. This will require expertise and insight into these specific markets.

PRODUCT

Product will be the most important factor. The quality must be extremely high in order to target wealthier individuals on a global basis. This means that businesses must undertake significant market research and R&D in order to meet customer requirements.

PRICE

Businesses will be able to charge high prices as they are targeting the world's wealthiest consumers. In essence, price is not an important factor to the consumer. The high levels of disposable income that people have mean that, although sales volume is low, there is significant added value for each product sold. 

PROMOTION

Global promotion will be targeted through niche channels. This may be through specific social media as the target market are likely to be up to date with the very latest social media. However, it could be very carefully planned and specifically targeted, with one to one service provided to meet the needs of demanding clients. 

PLACE

Place will be through carefully selected channels. It may well be that the business goes to the client, offering high quality individual customer service.