Purchasing (Em)Power

“The whole offering must cohesively hinge upon preserving and ensuring the dignity of your new customers. The poor are not looking for handouts, but rather opportunities; providing them with such products or services through a filter of 'charity' or 'social work' serves no one.” (core77.com/blog/featured_items/the_5ds_of_bop_marketing_touchpoints_for_a_holistic_humancentered_strategy_12233.asp) I believe this quote adds merit to the discussion as to why the for-profit model works. In most industrialized countries, your purchasing power increases your status. In developing countries, the ability to purchase certain products can increase earning power and self-respect. The Kickstart Money Maker Pump is an example of the success of a “social business” that allows the poor to work toward improving their wellbeing without accepting a handout. Kickstart pump dealers in Mali say that if they gave these pumps to farmers, they would not use them because they would not be convinced of their value. Because they bring their own money to purchase them, they are more convinced of their usefulness. These dealers say “it is that simple” (http://www.youtube.com/watch?v=njN9B3091t4&feature=related ).

By providing low income households with affordable and useful products, companies create a chain reaction of positive growth. Word of mouth is the key to marketing useful products to low income families in rural areas. As the video from last week’s class demonstrated, many low income people who begin to generate a higher income from a product they purchase do not want to advertise their economic growth. It would be useful for the marketing strategies behind such products as the Kickstart Money Maker Pump to utilize the culture of the low incomes areas they are targeting. Some examples of these strategies would be to have product demonstrations during village celebrations or use a local resident as a town crier to advertise a product. These methods will assist in the marketing of a useful product without exposing those already benefiting from using the product. Less fortunate people of the surrounding areas may look to take advantage of their neighbor’s new found wealth.