The opening case describes how Procter & Gamble (P&G) is moving away from its traditional emphasis on marketing to middle class consumers. It is adopting this strategy because it sees the middle-income market segment as shrinking, while the lower-income and higher-income market segments are increasing.

1. How would you best describe P&G’s marketing strategy for the situation presented in this case?

2. What elements of P&G’s external marketing environment are influencing the company’s marketing strategy? Explain your reasoning.

3. Why do you suppose P&G’s marketing research includes face-to-face interviews for the situation described in this case? Would other forms of marketing research also be useful in this situation? Explain your reasoning.

4. Explain the roles of target marketing and market segmentation as they apply in this case.

5. In what ways are the components of P&G’s marketing mix being affected by the situation described in this case? Give examples to illustrate.