Is It Exploitation for a Company to Profit from Selling Soaps, Shampoo, Personal Computers, and Ice Cream, and so on, to People with Little Disposable Income?

In: Business and Management

Submitted By klawson1
Words 385
Pages 2
There are more than 4 billion people that live at the bottom of the pyramid living on less than $2 a day.
“Traditionally the poor have not been considered an important market segment. The poor can’t afford most products; they will not accept new technologies; and except for the most basic products, they have little or no use for most products sold to higher income market segments – these are some of the assumptions that have, until recently, caused most multinational firms to pay little or no attention to those at the bottom of the pyramid.”

Marketing to the bottom of the pyramid is something companies need to venture into. The major markets are being oversaturated and the bottom of the pyramid are being forgotten and not marketed to. I feel that it is not exploitation for a company to profit from selling soaps, shampoo, personal computers and ice cream and so on, to people with little disposable income. When engaging the poor into commerce this is giving them a chance to move up the poor distribution ladder. This is also a good thing for companies because the ‘aspirational poor’ represent about $14 million in purchasing power so I believe it is necessary for companies to look into this. When companies overlook the bottom of the pyramid they are not letting the people of this segment enjoy the benefits of quality products. By marketing to this segment, the market creates more choices and also expands the market so more profit can pour in. It is not exploitation when company profit from selling necessities like soaps and computers to people with little disposable income because each person has a role to fill. There is a buyer and a seller. When a transaction takes place, a business relationship forms and there is an agreement that is made between the two parties. The seller has one job to do which is to sell. The buyer has the ultimate power which is either to…...

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