Niche Markets - Cultural diversity: recognition that groups of people across the globe have different interests and values - 4.3.2

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

Cultural diversity - is the range of different people and their values within a society, which may be based on ethnicity, beliefs or other similar factors. Society attempts to take into account all people's values in order to create a just and fair world. 

Global niche markers are similar to domestic niche markets in that they target a very specific range of people, though the key is to position a product so that it appeals to a wide range of customers across the global market.

CULTURAL DIVERSITY

Cultural diversity recognises that the ideas, customs and social behaviour of a particular people or society vary in different global markets. Those businesses that cater for this will thrive but will struggle to identify exactly what niches in the marker that they have to fill. Those who don't are likely to lose market share.

Cultural diversity needs to take into account different values of the market in which the business is operating. For example, in Saudi Arabia not only is the custom not to drink alcohol but it is also illegal to do so. Therefore, Diaego, the multinational global leader in alcoholic beverages, would need to adopt a radical approach to global marketing if it decided to consider the country as a new market.

Cultual diversity means taking into account different interests of potential customers. For example, Adidas needs to recognise that football in the UK and Asia may be big business, but in the S it is seen as a minor sport. In the US, American football would be the focus of Adidas marketing activity for the mass marker and football for the niche market.