International Marketing Practices

4. Select the niche in which you have a competitive advantage. Choose one or more market segments based on your strength, skills, location, and resources. Niche marketing can be risky, as it may be temporary or attacked by competitors. Specializing in more than one niche may lower risk and increase the chances of success. 5. Develop a marketing program to meet the needs of this market. For each niche chosen, determine the appropriate or best product, price, promotion, and distribution system to serve customers efficiently and profitably. Superior service can help build and retain customer loyalty. Success in niche markets will not go unnoticed. Competitors will be attracted, each trying to make a better product, supply it at a lower price, or provide better service than the present niche occupant. Niche marketers should develop a close relationship with customers to better understand their requirements, find ways to help increase efficiencies, and be responsive to their needs. Continuing attention to these factors will help guarantee lasting success in a niche market and help the producer avoid being tied to commodity markets. Successful Niche Market Strategy Example A family-owned business in Minneapolis, Minnesota, uses salvaged logs from trees in the “urban forest” to make items such as retail accessories, custom furniture, and lumber. The company marks each log with the zip code of the area from which the tree came and places it on the finished product. This company has found a niche of customers who want to buy local, sustainable products.

Other examples of niche forest products include the following:

• Reclaimed wood from old buildings • Athletic flooring systems • Wooden golf clubs

• Proprietary grades for hardwood lumber • Window grilles • Barrel staves

Online and Digital Marketing Online marketing has grown exponentially, and it now influences half of retail sales. This is not hard to believe, particularly if one considers that more than 80% of U.S. residents own a smartphone with internet access [140]. Global spending on digital marketing is close to $100 billion [141], and about 40% of the global population has access to the internet. From advertising to retail sales to product review websites, the internet has revolutionized the way companies conduct business. The internet is an especially powerful tool for small and starting businesses, as it helps to “level the playing field” with other big players in the market. However, there are different components of an online marketing presence, and each business must evaluate which ones are relevant and appropriate to its unique characteristics.

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