Segmenting the Base of the Pyramid - Assignment Example

The division should be based on income (Bister M et al, 1990).

After the division, one needs to consider the roles of the various groups in creating a good relationship. This relationship should be aimed at creating value between consumers, producers, and clients. As a result, marketing concepts of price, promotion, place, product, and target market research has to be done by the company. These concepts; are meant to meet the goals of the company and at the same time focus on customer satisfaction. Consumers will always prefer products of good quality and performance and those with innovative features. The products should be of affordable prices and easily available.

It is the role of managers to ensure that promotion is also done, and products are designed to meet the needs of the customers. Four pillars must be taken into account while doing this, these include; target market, customer needs, integrated marketing, and profitability. Serving the bottom of the pyramid will need innovations in technology, products or services, and even business models. Local governments and civil society organizations have to work hand in hand with corporations to ensure that the needs of these low-level groups are met.

ANALYSIS
Satisfying these low-income groups and at the same time meeting company requirements at times may be hard for the company. It calls for lowering the cost of production. This is hard for many companies since they have to produce high-quality products at the same time. High-quality products mean that the companies have to get raw materials at low prices, which is hard. At times, managers fall in love with their products that they do not realize what these low-income groups need. They feel that their products are so superior that they fail to market them. Consumers, on the other hand, need these products at affordable prices at their convenience.

Extensive reach and coverage of the target market are very essential for any company since this forms the basis of marketing. The majority of people often lack information about new products. Companies need to carry out target market research and understand the type of market, locations, and capability.

They have to produce quality products and engage in corporate social responsibility. Most managers misunderstand the promotion idea or concept. They only practice when they have overcapacity and their aim is always to sell what they can make, rather than what the market wants. This should not be the case. Engaging the community in the supply chain is a good idea that, if adopted can create customer loyalty to a company's products hence increasing profitability and at the same time retaining customers. Commercial partnerships with NGOs are a useful tool in creating a good relationship or projecting a positive image about the company. These NGOs can act as donors in times of financial difficulty. In conclusion, if all these strategies are integrated without ignoring some, greater profitability can be achieved while at the same time creating value. Read More