Downmarketing

April 30, 2010

Downmarket products, also known as low-end products are often sold to low-income consumers or businesses, but these days almost everyone wants to go downmarket to accommodate tighter budgets. As a business, you want to accommodate your customers, but cheaper products can be inferior and tarnish your brand.

A smart way to move downmarket would be simplify a current high end product. For instance, if you own a software company and your flagship software has lots of bells and whistles that clients may not necessarily need, create simpler product. You may want to survey your current clients to see what features they find useful and which ones they do not.

Be sure to make a distinction between a downmarket product and a high-end product. If there is confusion in the marketplace it could affect your reputation. You may even want to choose a new name in which to market lower-end products.