Niche Market Targeting

• Some businesses target a specific unique market segment.
• Niche markets are often pinpointed by identifying specific needs of small customer groups.
• After identifying needs, businesses develop products satisfying them in a way that rivals haven't.
• Niche markets do not have to be small.
• Global niche marketing becomes possible when these groups exist in other countries.

Economies of Scale

• Businesses targeting domestic niches are not likely to exploit economies of scale because they cannot sell enough output.
• When targeting a global niche market, the quantity to be produced will rise significantly so a business might be able to sell enough to scale up production and lower average costs.
• The opportunity to exploit economies of scale is reduced if products must be adapted to meet cultural differences.

Limited Competition

• Niche markets are often left alone by large multinationals given their small size.
• Levels of competition in niche markets are often lower.
• Businesses find this environment suitable because there is less pressure to invest in innovation and keeps costs under control.

Premium Pricing

• Businesses selling products in global niche markets can often charge premium prices.
• This is due to a lack of competition or because consumers will pay more for products meeting their needs and wants exactly.
• Rolex can sell some timepieces for quite high prices.

An Emphasis on Quality

• There are very high-quality products in global niche markets.
• Consumers are very wealthy and prepared to pay high prices for artisanal craftsmanship, high-quality materials, and the creation of specialized products.
• Global niche brands include Ferrari, Rolex, Prada, Gucci, and luxury hotel group Soneva and the quality of customer service is incredibly high.

Focus on Profit

• Businesses serving global niche markets are likely to be more profit-oriented.
• This is because they produce much smaller quantities than those serving mass markets, therefore, they are less likely to be concerned about market share.
• They often charge premium prices and deal with customers on a more individual level.

Brand Loyalty

• Businesses serving niche markets often cultivate stronger brand loyalty than those serving mass markets.
• Customer needs and wants are met more precisely, causing customers to usually stick with the brand.
• Customer service is more personal.
• Stronger relationships with customers are possible because there are fewer customers to accommodate.