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Based in london.
Third largest transnational tobacco company.
Second-most profitable Public Traded Tobacco Company.
Net value $100 billion USD
Strong focus on emerging markets.
Very aggressive marketing techniques.
Strong aim on emerging economies with weak regulation.
Marketing "low-tar" and "light" cigarettes.
To get around countries with regulation, uses colours.
Market segmentation for vulnerable groups.
Aims at women, youth and the poor.
Women: fashion events, parties for wealthy. "superslims"
Youth: sponsor concerts, glow in the dark, social networks
Poor: giveaways and promotions, pride and tradition
Indonesia > Sejati brand: themes hard work and survival.
Galbraith: advertising necessary - informs what people want
However, it also creates wants.
Therefore you cant justfiy advertising as fulfilling wants if it creates them.
How can cigarettes be ethical?
"Higher standard of living"
Hayek: But without advertising, we dont know our options
To say needs are only innate ignores cultural heritage
food is necessary, but we as a society demand music, tv etc
Advertising doesnt always work
Coercion is the act of forcing someone to do something.
Persuasion is trying to convince someone to do something
Manipulation is the act of non-coercively modifying available choices or by non-persuasively altering the perception of available choices.
British American ... participates in manipulation.
They do not change the product, yet they market it as different to create the illusion of choice.
Uses unethical marketing techniques. -low tar etc