The goal of developing and growing bottom of the pyramid (BOP) markets is to create mutual value between businesses and the community. To market within the BOP market, radical innovation is necessary in order to modify products and make them affordable for people of all income levels. The problem with this strategy, however, is that companies often fail to consider the perspective of the poor themselves. Businesses that mainly focus on top of the pyramid (TOP) markets are more likely to fail within the BOP market, as products created for the rich are not suitable to the poor. Consequently, the BOP market requires company’s to create unique business strategies for the BOP market in order to produce effective results.
Within the BOP market, companies have to determine new solutions on attracting the consumer and then provide an affordable solution. To get products to the BOP markets, company’s can consider the sachet revolution; a marketing approach used to package items within sachets that make them affordable to the poor. Additionally, companies should partner with local leaders within BOP markets to help with implementing a strategy. Microsoft is a company that generates activities targeted at emerging markets including the BOP market. The company partners with local governments, organizations, educators, and community business leaders to implement software and hardware into employment areas and the education system to help improve lives. Nonetheless, there is no single solution for creating a successful BOP market strategy and achieving success. Technology, global standards, and global scales must all be utilized to help solve the poverty problem. Firms operating in the BOP market have to utilize unique strategies to reach the market and learn how to do more with less.
Income, prices, savings, debt, and credit availability determine economic purchasing power. The economy has strong impacts on consumers and businesses that are geared at particular income-based segments of users. The goal of the marketing firm or marketing consultant is to develop strategies that influence consumer purchases. Consequently, the marketer is responsible for creating strategies that can reach the desired consumer no matter the income level or location. Although the BOP market does create risk and obstacles that may be outside of a marketer’s comfort level, it does not mean that the market should be avoided for an easier, more convenient market. Within a BOP market, firms and marketers need to innovate and create unique strategies and products that reach the market and consumers. Within innovation, markets get ignored and business, and individuals are left at a disadvantage.
Information and communication technology (ICT) can assist with developing bottom of the pyramid (BOP) marketing goals. Company’s can achieve their BOP market goals by creating strong relationships and open communication between local partners within the BOP communities. ICT can contribute to economic development and poverty reduction. ITC assists individuals and companies grow their economy, build opportunity, and increase process efficiency. If people within BOP markets do not have the opportunity to take advantage of new ICT applications, they will be disadvantaged or excluded from participating within global communication. In many parts of the world, ICT contributes to revolutionary changes in businesses and everyday lives of the poor. Providing BOP markets with the opportunity to use technology to communicate with one another and across the globe creates strong social and economical impacts. However, corporations deal with many risks as they attempt to restructure their business strategies, processes, and implementation into BOP markets.
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Dr. Elijah Clark (September 22, 2022). Bottom of the Pyramid Markets [Web log post]. Retrieved from https://elijahclark.com/bottom-of-the-pyramid-markets/