Marketing in a Regulated Market - Essay Example

Marketing in a regulated market The tobacco industry is rewarding in terms of the amount of profits earned by thestakeholders. The main beneficiaries in the tobacco industry are farmers, manufacturers, distributors, departmental stores, retailers, vendors, and advertisement agencies. The returns on investment are high, and so are the consequences on the buyers (Mehta, 2006:68). Many organizations resent on the idea of promoting cigarettes as the act is luring young people into smoking and at high rates. Organizations argue out that, all cigarettes related promotions should halt, as this is the only method to curb the indulgence into the behavior. Although it is a regulated market, the government decides on the production practices it realizes the tobacco monopoly and does not try to implement measures that would eventually curb the business out of operation (Pampel, 2009:89). The script outlines the basis at which producers deceive buyers, market the product against the wish of ethics and morals, and ignore the constraints issued by the world health organizations to amass profits at the long run, and a documented inclusion of defiant states to the constraints. Further, the script entails the marketing mix variables and the ethical concerns of tobacco. Ethical issues pertaining GBT’s practices The company advertises the Gold brand uniformly through social networks and media, and this aspect catches the public equally, but fails to warn possible buyers on the consequences of smoking. Another ethical concern arises from the untamed advertising that, tobacco contains medicinal value, which is an ancient belief, and the company expresses it to increase demand on the output (Smith, 2003:42). The third ethical dilemma arises from the product design and packaging of the cigarettes since there are no warning signs on the Gold brand depicting the possible health hazards of smoking. Distribution of the GBT’s Gold Brand (Place) Tobacco market decline would adversely affect a nation that grows, processes, produces, and sells the cigarettes. The economy of Malu produces tobacco and depends upon it for economic growth and change in the people’s lifestyles. The government allows distribution of tobacco product brands in different channels to reach a wide range of consumer effectively. The famous homemade cigarette brand of “Gold” sells among all ages in Malu, despite the constraints to refrain from the practice, this practice is unethical to the extent that it will harm the health of the citizens. The product reaches the market via proper distribution and adequate creation of awareness throughout the potential market segments in the south Asian country (Mani and Sandhu, 2006:69). Promotion marketing mix strategy of the GBT’s Gold Brand The various promotion practices of the Gold brand cigarettes are deceptive and meant to retain buyers, entice new ones, recall old consumers, and increase the marginal consumptions. The idea of deception enables the GBT firm to survive in the market since buyers tend to retain the “value” they derive from consumption of cigarettes and avoid quitting altogether, as they feel affiliated to the product. Therefore, Fiona’s practices are unethical and morally bend to lure citizens in promoting economic growth through consumption of cigarettes and, at the expense of their general welfare and health (Weightman, 2011:87). Pricing strategy of the GBT’s Gold brand The international Tobacco products Manager at GBT, Fiona Fuller defines the best practices that the company intents to take in the process of wedging out possible threats that may injure the company’s operations and the desire to acquire the set goals profitably in the next decade. Fiona adapts to penetration pricing in acquiring the market that guarantees the company that the new venture is profitable (Pampel, 2009:95). She understands the presence of strong brands in the market from European nations that currently dominate 20% of market. Therefore, she strategically prices the Gold brand below the price of the competitors, and expresses the importance of using the product above others (Grayson and Hodges, 2004:52). Product as a marketing mix strategy of Gold brand Fiona understands the purpose of stimulating buying intentions among the target customers towards the Gold brand. In this step, the she may decide to entice the consumers on the good aspects of using the product preferably over those of rival companies. The deception process should lure consumers effectively, perceiving the product as serving their needs adequately (Grayson and Hodges, 2004:17). Fiona strategically deceives the audience that the Gold brand will equally serve their needs, by including all values that smokers seek. The seven step model Fiona should undertake the first task with the help Suppakorn Rachinda, the brand manager of “Gold” of the GBT Company, at the southeast region. She would critically analyze the potential triggers calling for involvement in the segments, and the extent at which the product is likely to sell (Pampel, 2009:97). Fiona should use to identify the scope, and observe that the main purpose of the company in the south Asian market is achievement of target goals profitably. She should practice the third step of establishing the business case, to the degree that she relates her company to the set government constraints. Thereafter, Fiona should adapt to the fourth step and define the course of action to take, and as depicted from marketing mix variables, she should hold the ability to weigh out possible threats and effectively seize competition. On the fifth aspect, Fiona should integrate and gather resources towards the production of Gold brand. She should involve the company to maximize advertising investment to the target $16 million, thus abiding to the sixth step. Before venturing into the market, she should analyze report findings to elaborate on the effectiveness of the marketing mix strategies (Grayson and Hodges, 2004:54). The four alternatives The company should understand the current state of the global market, and effectively interpret it in relation to the product. Foreign authorities ensure that the marketing practices are not deceiving the consumer for the company’s benefit. Secondly, Fiona should consider her approach on ethical basis and the possible views from the community. Thirdly, she should identify an effective procedure that accumulates all societal values and ethics. This aspect would eventually merge the company to the entire community, and help avoid conflicts. The company comprises of primary stakeholders, for instance the managers, employees, and the government investors. The secondary stakeholders to GBT’s company are the lending facilities, and the advertising agencies that will make it possible for the company to contact the customers effectively (Ferrell, et al 2013:31). Deceptive marketing to entice ignorant buyers Fiona may evaluate the possible outreach processes, adequately luring users since the country remains docile to repel against tobacco production and use. She can establish the outcome of a decision in the eyes of the buyer (Schultz, 2009:41). She should define the possibility of taming consumers to have a positive view towards the Gold brand, eradicating the knowledge that smoking is a health hazard and a deadly practice to the consumers (Grayson and Hodges, 2004:165). As far as the country of Malu accommodates production and advertising of tobacco products, Fiona should avoid creation of awareness about the negative effects of the products. This will effectively accommodate ignorant buyers at increased profits to the company (Hindman, 2009:132). Utilitarianism rules over the good from the bad, hence, deceiving the Asian consumers to approaching smoking as a healthy practice is misleading and inconsistent to cultural morals. The managers should understand the emphasis of utilitarianism on moral values and establish the possible method to tailor the seven steps such that, the marketing of the product includes the will of the society. The second theory, Kantian Theory expresses the importance of valuing societal virtues, religions, morals and all ethical practices (Grayson and Hodges, 2004:244). The managers would relate their possible decisions to the Kantian theory and establish the possible extent of inconsistency. The managers should consider inclusion of an outline of the societal beliefs and norms in the south East Asian countries (Mehta, 2006:143). Therefore, the two managers should revive sales performance by use of advisable methods, which provoke less resentment on the ethical credibility of the company (Little and Marandi, 2003:7). Conclusions With the application of the seven-point model, the managers are likely to increase success factors at the south East Asian market. They adapt to the opportunities that the country renders mutually, to tobacco processing companies, and specifically, the GBT Company. The possibilities that Fiona will undermine the company’s best decisions to reconsider the stated facts on human health remain low (Weightman, 2011:130). The fact is that, GBT company targets to maximize sales from the diminishing levels and acquire profits and competence. Conclusions are that the company undermines human values to maximize production, increase market share, and maximize profits, whilst the consumer bears all the health risks. Further, Fiona emphasizes on deceptive advertises on the benefits of cigarette consumption. This aspect undermines knowledge and understanding of people, therefore, remaining inconsistent. Bibliography Grayson, D., and Hodges, A. 2004. Corporate social opportunity!: 7 steps to make corporate social responsibility work for your business. Sheffield: Greenleaf Publ. Hindman, H. D. 2009. The world of child labor: an historical and regional survey. Armonk: N.Y, M.E. Sharpe. Mani, A.,and Sandhu, K. S. 2006. Indian communities in Southeast Asia. Singapore: ISEAS. Mehta, P. S. 2006. A functional competition policy for India. New Delhi: Academic Foundation in association with CUTS International, Jaipur. Pampel, F. C. 2009. Tobacco industry and smoking. New York: NY, Facts On File. Available http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=288374. On 1st November 2012 Weightman, B. A. 2011. Dragons and tigers: a geography of South, East, and Southeast Asia. Hoboken, NJ: Wiley. Dogra, B., and Ghuman, K. 2010. Rural marketing: concepts and practices. New Delhi : Tata McGraw Hill. Smith, P. R. 2003. Great answers to tough marketing questions. London: Kogan Page. http://www.books24x7.com/marc.asp?bookid=8481.42 Schultz, D. E. 2009. Building customer-brand relationships. Armonk, N.Y: M.E. Sharpe. Little, E., and Marandi, E. 2003. Relationship marketing management. London : Thomson Learning. Shajahaman, S. 2006. Relationship marketing: text and cases. New Delhi: Tata McGraw-Hill. Ferrell, O. C., Fraedrich, J., and Ferrell, L. 2013. Business ethics: ethical decision making and cases. Mason, OH: South-Western Cengage Learning.31 Read More