Marketing of Tobacco Products

Marketing of Tobacco Products

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.(Kotler, Armstrong, Saunders, Wong page 5)

One of the products that are exchanged through marketing is cigarettes. Tobacco is considered an inherently unethical product because is addictive, dangerous and causes environmental damage. Tobacco is also considered a pleasing product because its immediate satisfaction is high but sometimes has harmful effects in the long run.

One of the long run effects of smoking is that four million people are killed every year and is estimated that the figure will rise to ten million by 2030 if current trends remain unchanged. (Yach, Brinchmann, Bellet page 2). Early deaths of non-smokers reduce their contribution to society but the high-cost required by elderly from pensions, treatment and other benefits. Also, tobaccos duties are a major source of income for the government and so the government might want a high and inelastic demand for cigarettes. (Sloman page 85). That is the reason why governments resisted a total advertising ban on tobacco products and subsidized the production of low-grade tobacco in European community countries, in the past.

However the anti- smoking groups claim that the health costs caused from smoking outweigh the revenue benefits. The future medical costs of a young smoker could be about $13700, excluding inflation. United States spends about $60 million per year for the treatment of patients suffering from smoking-related illness which account about 43% of all smoking related medical care expenditure and are paid from federal and states funds.. Furth...

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...kind of enlightened marketing that supports that a company should define its mission in social terms. (Kotler, Armstrong, Saunders, Wong page 62)

Finally, shareholders do not invest their money to unethical investments, as mentioned above, so if tobacco companies want to continue be part of investing projects they must support the regulation of cigarettes.

Therefore, tobacco firms can use their power (political power) and their money to enforce sound ethics for the benefit of the society as a whole (since marketing is a social process) to keep in track with the rest of the industries so that they will continue to be profitable. After all, as Friedman said, businesses should… 'Increase its profits as long as it stays with the rules of the game.'

Nowadays, companies which create new customers values in a socially responsible way will have a world to conquer.