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Marketing Management Lecture SMOKING

Marketing Management Lecture SMOKING - MARKETING MANAGEMENT...

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MARKETING MANAGEMENT Marketing Communications Advertising and the Cigarette Industry
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From Consumer Behavior to Media Planning Media planning: After the basic strategic decisions have been made, the mix of communications strategies involved in delivering the promotional message to the targeted consumer segments. Consumer Behavior Measures (Compared to comps) - Awareness produced - Unaided / Aided recall - Associations built with product or brand - Choice and loyalty Media planning: (Prop. of total) Compared to comps. - Reach: # of segments - Coverage within seg - Frequency - Cost per million/ratings point
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What do people value? 1920s: Initial Worries about Smoking “Coffin Nails” “Smoker’s cough” MAYANS Smoked first cigarettes EUROPE 17 th Century Spain - Rolled trash in newspapers by the poor.
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Innovation of Modern Smoking Tobacco Quality / “Smokability” Very harsh blends that were difficult to smoke were eventually mixed with Much milder blends: (e.g., Virginia Flue Cured Tobacco)
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Innovation of Modern Smoking BONSACK MACHINE Manual Method: Cigarette girls could roll 200 - 1000 per day Bonsack Machine: Can produce 100,000 per day! Cigarette’s evolve from an effete luxury to an everyman’s product Stanton Glantz (Stanford)
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Innovation Invention of safety matches Portable way to light cigarettes…. that won’t explode in your face!
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Innovation Development of Mass Communications (And Advertising) Camels brought to market in 1913. This Full page Ad introduced in every paper Across the US on the same day. (N.W. Ayer Agency for R.J. Reynolds) Never done before. “Tomorrow, there will be more Camels in Your hometown than in all of Arabia!” (No one knew what they were at this point) This campaign produced 50 percent market share almost immediately
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Innovation Color Lithography techniques The foreign/oriental themes built
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