Niche markets - Features of global niche markets 4.3.2
Niche market - A smaller segment of a larger market where customers have specific needs and wants.
Global market niches are subcultures in world society. These share common interests and can be identified as market segments on a global scale. Although a niche tagets a smaller market, on a global scale, this can be sizeable. This is particularly profitable when we recognise that these are likely to highly differentiated products rather than low costs. This means that the world's wealthiest consumers can be targeted, with the quality of the product being the most important factor.
Other common features of a global niche market include;
Global market niches are subcultures in world society. These share common interests and can be identified as market segments on a global scale. Although a niche tagets a smaller market, on a global scale, this can be sizeable. This is particularly profitable when we recognise that these are likely to highly differentiated products rather than low costs. This means that the world's wealthiest consumers can be targeted, with the quality of the product being the most important factor.
Other common features of a global niche market include;
- Requires high levels of customer service as demanding customers pay for quality not quantity
- Highly skilled employees with the expertise and, at times, the reputation required to create and sell the desired products
- Product innovation is essential in order to product the highly differentiated products that customers require
- A high level of market research is required in order to understand the specific needs of the marker on a global basis.
- Prioritising profit rather than market share
- Cost efficiency that is not at the expense of the quality
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