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The chapter begins by reviewing trends in marketing expenditures made by the tobacco companies and changes in the focus of these expenditures over time. The present chapter provides an updated and extended review of the evidence on the impact of the tobacco companies’ marketing activities on tobacco use. Correspondingly, the growing strength of the evidence in this area has been reflected by the increasingly strong conclusions drawn in comprehensive reviews of this evidence, including those in previous Surgeon General’s reports on smoking and health (notably the 1989notably the 1994notably the 1998, and 2000 reports ) and other comprehensive reviews (e.g., Lynch and Bonnie 1994 Federal Register 1996 Lovato et al. This growing evidence has helped to spur a variety of policy interventions aimed at reducing the influence of marketing on tobacco initiation and consumption by the tobacco companies, from the 1971 ban on broadcast advertising to the constraints contained in the 1998 Master Settlement Agreement ( National Association of Attorneys General 1998a) and Smokeless Tobacco Master Settlement Agreement ( NAAG 1998b).Īs research evidence has accumulated over time, the relationships between the marketing activities of tobacco companies and the use of tobacco, including use among young people, have become clear. In contrast, the weight of the evidence from extensive and increasingly sophisticated research conducted over the past few decades shows that the industry’s marketing activities have been a key factor in leading young people to take up tobacco, keeping some users from quitting, and achieving greater consumption among users ( National Cancer Institute 2008). Tobacco companies have long argued that their marketing efforts do not increase the overall demand for tobacco products and have no impact on the initiation of tobacco use among young people rather, they argue, they are competing with other companies for market share. Even so, variations of many of the marketing practices used by Duke continue to be important marketing tools for today’s tobacco companies, as discussed in this chapter. markets for tobacco products have remained highly concentrated, with little price competition. tobacco markets in the early twentieth century before antitrust actions dissolved the trust in 1911. These strategies contributed to the growth of Duke’s American Tobacco Company, which came to dominate U.S.
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Duke’s marketing practices included setting relatively low prices, providing sophisticated packaging, carrying out promotions such as including picture cards in cigarette packs and sponsoring various public events, and paying distributors and retailers to promote his brands ( Kluger 1996). In the late nineteenth century, James Buchanan Duke used the cost advantages he gained from his adoption of James Bonsack’s mechanized cigarette rolling machine to aggressively market his cigarette brands ( Chaloupka 2007). Tobacco companies were among the earliest companies to identify and implement effective, integrated marketing strategies, and cigarettes and other tobacco products have long been among the most heavily marketed consumer products in the United States ( Brandt 2007). These techniques include product design, packaging, pricing, distribution, product placement, advertising, and a variety of promotional activities. In most developed countries, businesses use a broad variety of marketing techniques to increase their sales, gain market share, attract new users, and retain existing customers.