You will need to install the SDK for Windows Phone 7.1 (which is for v7.5 consumers). You will also need to create a new project and configure Windows Phone 7.1.
If you don’t use the exclusive Windows Phone 8 APIs, you can simply “add as a link” all the files in your Windows Phone 8 project to your Windows Phone 7.1 project and simply recompile. Even so, you can still use this approach, you just need to use compiler directives to fix any API problems that you find at compile time.
Here's an article that explains the various ways to target both WP7.1 and WP8. The one I suggest is the last one on this list: How to configure multiple versions with your Windows Phone application
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