Essay on Tobacco Industry Analysis

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The tobacco industry involves companies that sell and produce tobacco products all around the world. Tobacco products include cigarette, cigar, pipe, and chewing tobacco. Tobacco smoking is “the single largest cause of preventable death and disease in our community.” (Tobacco. 2006) With a society becoming more prosperous, education is improving and a concern for quality of life is resulting in a strong anti-smoking sentiment on all levels of society. Therefore the present and future marketing activities of the tobacco industry are heavily impacted by forces within its micro and macro environments.

In analysing the changing marketing environment for the Tobacco industry, we look at the micro and macro-environments impacting on this
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Tobacco companies are then able to pass these saving on to consumers, allowing them to be more competitive with other brands and also combat the severe effects of government tax increases.

Political
The political leverage of the tobacco industry must not be underestimated.
Tobacco lobbying works to ensure that action taken by the governments will have minimal effect on the levels of tobacco consumption.
Health professionals, concerned with bringing about changes to ensure the health of the general public, must unite in order to compete with the considerable power of the tobacco lobby. However, the tobacco industry is currently losing more and more debates, and the government is passing more and more legislation which will have negative effects on tobacco consumption. Due to the serious health issues surrounding smoking, the government imposes laws and tax increases to act as deterrents to tobacco smoking. These pose a serious threat to present and future marketing activities of the industry. Governments worldwide have approved bans on any advertisement that has the affect of promoting a tobacco product, including electronic and print media advertising. This affects companies marketing within the tobacco industry, on two levels. Anti-smoking organisations claim that advertising for smoking encourages people to start consuming tobacco products. Therefore, bans on advertising affect the industry’s marketing activities by reducing their
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