I have received an interesting email from Seth Godin which really made me evaluate the way I think about business.
Seth writes about marketing to the bottom of the pyramid and makes this point.
“Almost a third of the world’s population earns $2.50 or less a day. The enormity of this disparity takes my breath away, but there’s an interesting flip side to it: That’s a market of more than five billion dollars a day. Add the next segment ($5 a day) and it’s easy to see that every single day, the poorest people in the world spend more than ten billion dollars to live their lives.”
What is Your Target Market?
It is easy for anyone in business to look at a target market at get it wrong. It is true that you will be hard pressed to sell mobile phones, TV’s and iPods to these very poor people but someone is selling rice, pots and pans and other essentials. As sad as this situation may be for these very poor people there is still a business market.
For businesses in the more affluent parts of the world we can learn a lesson from this. Are we pursuing the middle or upper ground where individuals may have more spending power and yet are missing out on a huge market lower down?
Perhaps we need to start to examine the bottom of the pyramid.
What are your thoughts on this subject? Please leave your comments in the box below.
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