Management Question

For this assignment you will be answering question 5 and adding an conclusion. I have attached the case study below also please review the information provide to make a cohesive conclusion. 5. Pricing strategy and policies. Clearly identify how the proposed marketing strategy fits with the buying behavior of your target market.

The case study is below. Please view the information and provide a conclusion.

Tangible product/service features, benefits, and augmented product.

The buying behavior of the North American Medium Income segment can be described as the largest buying segment with a diverse demographic. Most will be working and able to afford detergents for their laundry needs with a modest budget allocation for extras such as home fragrances. They also tend to focus on family needs. Cavusgil, et al (2018) note that these buyers seek a diverse range of products and services with greater purchasing power than those of lower income (p. 103). Since they will have a fair amount of income coming in, they will likely be less price sensitive than the low-income segment.

The tangible elements of clean clothes will appeal to this segment very strongly as they are workers and homemakers, often with children. Plug-in scented oils use very little power and provide a tangible value to the home in that living it may be more comfortable with better scents. Using a pull strategy will help connect with this segment by reminding them of the product when they browse or shop. This includes the use of non-store retailing, such as online ads. Considering this segment will likely have access to internet and connected devices, this is a great approach to marketing for this segment.

While the fragrance offered by the product may be looked to as a tangible good, the way that other people perceive those scents could be looked at as augmentations. Socially acceptable scents on your person and in your home help others be more comfortable in your presence and when visiting your home. At the other end of this, the social stigma of being the “smelly” person can be very damaging to a person’s emotional wellbeing. The augmented elements of the P&G fabric care and plug-in fragrances can be tapped through public relations in our market expansion efforts. We want to connect with this segment through promoting awareness of the products and demonstrating the well-being that these products can help middle-income buyers achieve.


The distribution channels for P & G North America will have all the positions in place to handle the supply chains from starting to end from their raw materials with the touch point of their brand to their customers. Considering the supply networks, as the engines of the company that will help to create value in the market will be helpful. The teams will be given their duties to ensure that all the leading products reach the stores when there is a need. They have to be trained in such a manner that the right product reaches the right place at the right time and in the right quantity (Vizard, 2019). The company will be establishing a great relationship management and operational disciplines with all the supply chain managers and authorized dealers to become successful supply chain master.

The company has a huge target market that consists of all those who want consumer goods and generally every class of society needs these for their everyday life. The marketing strategy for P & G North America will be about creating campaigns in such a manner that starts with understanding the consumers and then creating such advertisements that will make them think. It will promote its brands with different means like direct marketing, advertising and personal selling in the market and also online media to promote their brands. It has a good capitalization on Internet marketing through the launch of its own website where one consumer can find all information needed for the product before purchasing it (Aimé et al., 2017). The environment in which the company operates in is a very competitive one but it can take the advantage of their big brands that will continue to do well because their main purpose will be to address their consumer needs and are better than their best possible alternatives at a justified cost.3. Promotion Mix

Target Market Advertising Personal Selling Public Relations Sales Promotion Budget
Medium Income Reminder Order taker Comparison/

Reminder – Website, public service activities and CSR, sponsorship, social media

Point-of-purchase display and coupons. Pull strategy Pull strategy. Competitive

The medium-income target market likely has familiarity with the products or brand and has a little more buying flexibility than a lower-income market. Therefore, we can use reminder advertising to keep consumers thinking about the product. This target market appreciates reliability and quality. Once they know a product has these attributes, they will likely establish brand loyalty and so it is important to continue to remind this target market that it is choosing a great product for a good price. This strategy will be used with public relations as well, in addition to a comparison approach. Via the brand’s website, social media, and other advertising methods, consumers can understand the value behind the company they are purchasing from. The technology and safety of the products can be emphasized along with how the company gives back. Corporate social responsibility is a developing interest for the medium-income market. While it may not be their main focus, this target market is growing increasingly interested in this and wants to feel good about what they are buying. In terms of sales promotion methods, the medium-income market has more flexibility when it comes to spending, so coupons may encourage the purchase of a new, more competitively priced product. In addition to coupons, using point-of-purchase displays will engage consumers and again, remind them of how valuable the product is. The medium income target market is a highly competitive space, being that it is the largest income market. Because of this, the budget will be set competitively. The brand has gained credibility with the target market as they have moved from purchasing lower-priced products to more competitively priced products. The medium income consumer goes into the store looking for these products and so advertising must continue to promote this behavior.

5. Pricing strategy and Policies

Market Segment Marketing Strategy to reach a market segment Product Mix Strategy Pricing Strategy Channel Strategy Promotion Strategy
Service industry and retailers Product Advancement strategy Baby Care, Priced Competitively Discount stores, Highest quality/reliable technology/productive/efficient
Fabric Care, Grooming Retail stores
Agencies/ Institutions Product Advancement strategy Baby Care, Priced highly Retail stores, Highest quality/ reliable Technology/productive/Efficient
Fabric Care, Grooming Chosen distributor,
Direct selling
Manufacturers Cost strategy Fabric Care, Grooming Priced Competitively Direct Selling Newest technology/ Innovative reliable product/ efficient/ customization
baby Care,
Thinkers/ Achievers Product Advancement strategy baby Care, Fabric Care, Grooming Priced highly Retailing stores Highest Quality/ Mass as Competent/ Industrious Reliable Technology
Believers/ Strivers Differentiation Baby Care, Fabric Care, Grooming Priced Less Retailing stores Superior brand/ Frame as Fashionable products
Makers/ Survivors Market Penetration Strategy baby Care, Fabric Care, Grooming Priced Competitively Stores retailing to Licensed experts Superior brand/ Proven products
Experiencers/ Innovators Product Advancement strategy baby Care, Fabric Care, Grooming Priced highly Retail stores/ selling online through websites Newest technology/ Innovative product

The proposed marketing strategy fits the buying behavior of our target market. Our target market desires the best brands at the best prices, and their buying style allows them to choose items and services they are more likely to buy.

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