Market to the Poor, Advice for Retiring Executive/Aspiring Entrepreneur
June 28th 2007 09:35
Are you set to retire from your corporate job? Thinking to set up your own business? The advice from marketers is to set up a business that will cater to the poor. I know what you're going to say, "But the poor, are poor! They don't have any money to spend!"
The poor spend !
One of the misperceptions about the poor is the widespread belief that this population is not a market because they don't have the money. The fact is that they do have the money and they spend what they have.
Survey reveals that the poor segment of the population have the money and they have much more than what they divulge to market survey interviewers. And they spend. They spend more if not much more than the mid-scale and upscale segments.
One reality about consumers in this segment is that they do not spend evenly throughout the year, for they spend sparingly under a tight budget. However, there are occasions during the year that they spend lavishly and splurge as they have a budget for these special events because they save up for them.
These special occasions are reserved like birthdays, a debut, wedding anniversary. Another category for celebration by a typical household or family include Christmas, New year, Valentine's Day, Father's Day, Mother's Day, and the like. Still another category concerns those occasions for celebrations by an entire community or neighborhood. Celebrations are usually extended for a week to two weeks or even 3-4 weeks. These extended occasions are barangay, municipality or city fiestas and festivals. Both fiesta and festivals are celebrated with much fun and fair, every house opens up for a lunch, dinner, or both. Every family would usually go out to the fair and play some games, take some rides and eat out.
It's pathetic, but it's a marketing fact that the poor remains poor because they spend beyond their means. And many of the rich remain rich, because they are frugal.
The poor spend !
One of the misperceptions about the poor is the widespread belief that this population is not a market because they don't have the money. The fact is that they do have the money and they spend what they have.
Survey reveals that the poor segment of the population have the money and they have much more than what they divulge to market survey interviewers. And they spend. They spend more if not much more than the mid-scale and upscale segments.
One reality about consumers in this segment is that they do not spend evenly throughout the year, for they spend sparingly under a tight budget. However, there are occasions during the year that they spend lavishly and splurge as they have a budget for these special events because they save up for them.
These special occasions are reserved like birthdays, a debut, wedding anniversary. Another category for celebration by a typical household or family include Christmas, New year, Valentine's Day, Father's Day, Mother's Day, and the like. Still another category concerns those occasions for celebrations by an entire community or neighborhood. Celebrations are usually extended for a week to two weeks or even 3-4 weeks. These extended occasions are barangay, municipality or city fiestas and festivals. Both fiesta and festivals are celebrated with much fun and fair, every house opens up for a lunch, dinner, or both. Every family would usually go out to the fair and play some games, take some rides and eat out.
It's pathetic, but it's a marketing fact that the poor remains poor because they spend beyond their means. And many of the rich remain rich, because they are frugal.
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