Marketing Strategies for Low-Income Consumers

Reduce unit size to lower costs.

Many businesses choose to ignore low-income consumers in their marketing efforts; in doing so, they are missing out on an opportunity to capture a portion of a large consumer group. By adjusting your marketing to serve this section of the market, you can see expanded business growth and brand loyalty.

Affordability

One of the most important concerns of a customer with a low purchasing power is that the items they do purchase must be affordable. To capture the attention of people with a lower income or who are paid on a weekly or daily basis, emphasize the affordability of your units. You might focus on products that sell smaller units, for example, or talk about how less packaging means lower prices. If you can create brand loyalty through smaller quantities, you are more likely to keep the customer when his income rises. You might also focus on payment plans and reasonable pricing structures that allow low-income customers to purchase larger items but pay for them over time. In doing so, you can remove the perception that the consumer will need to save a large lump sum to purchase your products.

Quality

If you are marketing a product or brand that is known for having a low price, eliminate the idea that a low cost equals lower quality. Update your branding so that it better reflects the colors and style of higher-cost products; when customers see two products with bright, modern packaging, they are less likely to attach a "cheap" stigma to the less expensive option. Design your marketing campaign to emphasize the quality of your products. You might launch a rebranding, for example, or use a "new look, same great price" campaign.

Emotional Appeals

Worrying about money is a stressful experience, whether a consumer has just fallen on hard times or has dealt with low income her entire life. To make your company more attractive to someone who must watch every dollar, use an emotional appeal designed to make her comfortable. Design marketing materials that are geared toward peace of mind; write copy that helps consumers believe that your product will make their lives easier -- save them money, or take away their stress.

Visibility

When a low-income customer needs to purchase a larger-ticket product -- which, depending on purchasing power, may mean anything from $50 dollars or up -- they are likely to research to find the best price. By making your brand, products and services as visible as possible, you have a greater chance of capturing these customers when they want to buy. Optimize your website for terms about your products and words like "affordable" or "low cost" so that it shows up on search results, and spread your marketing budget to different strategies to increase visibility.

References

• Entrepreneur: Identify New Consumer Norms
• ATKearney: Serving the Low-Income Consumer: How to Tackle This Mostly Ignored Market