Marketing Mix
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What pricing and marketing (target market, product, place, and promotion) strategies should Procter & Gamble Co follow? Defend your positions on why you selected the strategies you have chosen.
The Situation
To gain market share, P&G is lowering its prices. There are also a lot of conflicting signals as to whether or not consumers are willing to accept price levels that were in place prior to the current recession. What will the prices of P&G's products be in 6 months? Based on its current prices, 110% tells your reader that its prices will be 10% higher than its current prices and 90% tells your reader that its prices will be 10% lower than its corrent prices.
P&G is also selling its products in its own stores AND selling its products to distributors and to retailers with whom P&G's stores compete.
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Solution Summary
This solution discussed Proctor and Gamble in regards to their pricing and targeting strategies with much reasoning.
Solution Preview
The pricing strategy needed is penetration. This is because the economy is having some part in it, but it allows the company to raise it after people have begun to buy the products at hand. They are able to gain market share, and once this is accomplished, then P & G are able to make sure that they raise it. In 6 months, the economy will not be any better, and rumors will be around saying that there is a slight improvement, but in reality that is not going to be the case. I believe this is the case because people are able to only do so much when the economy is bad, but by using penetration pricing they are able to keep up with the times more efficiently, which makes this strategy sustainable.
P & G will need to target market is everyone because they are able to sell everything a person needs, just like Wal-Mart. However, reaching ...
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