Write a response paper to the book Out of Poverty by Paul Polak Essay

Write a response paper to the book Out of Poverty by Paul Polak - Essay Example According to Polak the group is a massive consumer but lack the financial ability to purchase the products. Additionally, he discovers that the group comprises of viable entrepreneurs. When designing products for the group, Polak advises that an entrepreneur consider the consumption pattern of the group. Firstly, the poor have minimal finances they therefore attach more importance on the price of the commodes they purchase often at the expense of the quality of the products. An entrepreneur must therefore devise cost effective means of production to ensure the manufacture of cheap products that will fit the budgets of the group. Additionally, the group is huge. At 90% of the world population, it is therefore the greatest market and after designing products that appeal to the group, the next big feature of such a business becomes the mass production and determination of effective retail services. Of all the ideas Polak fosters in his book, among the most surprising findings is his claim that the 90% of the world’s population is poor. Additionally,, the scholar claims that the 90% drive the world economy. However, he breaks down his points to validate his claim by explaining the financial movement in the market economies thus validating his claims. According to his explanation, it becomes factual that a larger percentage of the world’s population is poor but still controls the global economy. I agree with most of his ideas. I like the idea that products that target the poor often sell faster and better than those targeting the wealthy in the market do. Just as he explains it, the poor are the majority this widens the base of the market for any product or service that targets the population. An entrepreneur must therefore determine the best way of producing such products at cheap costs but in bulk. As a marketing strategy, by targeting the poor, an entrepreneur earns smaller profit margins per product but sell many