Slides in this set

Slide 1

Preview of page 1


Slide 2

Preview of page 2

Global Market Niches
A market cannot exist without buyers and sellers. A mass market doesn't
focus on one type of customer ­ it has a generic product.
A niche market concentrates all marketing efforts on a small but specific
and well defined segment of a mass market. E.g. Diabetic chocolate in the
chocolate market
It aims its product at a specific type of consumer
They usually get fewer sales (not less revenue) but they can charge
higher prices to make up for it as the mass market products don't meet
this groups needs
It is easier for small firms to operate in niche markets because there is
less competition from bigger companies. A big company may not want the
operating costs whilst a small business may only have a small factory…read more

Slide 3

Preview of page 3

Niche marketing globally
A business who operates in the niche market
will need to distinguish themselves from the
mass market through
Quality e.g.
Market expertise e.g. Armoured cars
Innovation e.g. Underwear for obese people
The marketing mix
The small nature of market niches means that a
business can gain access to more potential
customers by going global ­ which has been
made easier by the internet…read more

Slide 4

Preview of page 4

Comparing Niche and Mass
markets marketing mix
Niche Mass
High/ premium price Low/ competitive price
Specialised produce Standardised Product
Narrowly focused promotion Broadly appealing promotion
Sold at limited outlets Widely available…read more

Slide 5

Preview of page 5

Why sell in a global niche?
For some its the only option because
demand in the domestic market isn't
high enough to sustain the business
For others its a way to escape the
hostile competition of low cost foreign
producers. By focusing on a specific
segment of the market they can
differentiate their business and escape
direct competition…read more

Slide 6

Preview of page 6

Successful global niche
Know their customers needs
May offer high levels of customer service
Will be experts in their field
Will prioritise profit, not market share.
Have high profit margins with small
turnover (mass market has low profit
margins, high turnover)
Will focus on cost efficiency but not at the
expense of quality…read more

Slide 7

Preview of page 7
Preview of page 7


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »