Making Socially Responsible and Ethical Marketing Decisions: Selling Tobacco to Third World Countries - Essay Example

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Name of the of the university Title of course Date Ethical and social responsibility implications Consumers all around the world are becoming aware of their health. The governments in different countries are floating awareness campaigns against the habit of smoking…
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Making Socially Responsible and Ethical Marketing Decisions: Selling Tobacco to Third World Countries
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Download file to see previous pages This has effectively increased awareness among the people of the country about the harmful effects of smoking and eventually caused a decline in sales of cigarettes. The tobacco producing companies based in the US are therefore turning to other sources of demand for their products. They operate with profit motive and so they need to maintain sales in order to remain profitable in the long run. The companies are facing actions like lawsuits and pending legislations in the country. But in the developing nations these sellers do not face much legal barrier. There is much less government regulation in these countries and also owing to lack of supervision and corruption the laws are sufficiently implemented. Therefore these companies are getting a more easy way to capture the market in the less developed countries. The marketing strategies adopted by these countries are aggressive and they make use of every possible way to develop an interest among the public in these companies and their products (TTAC, 2011). Ethical issues are arising in relation to the activities of these companies. In the developing nations all sections of the population are totally aware of the effects of smoking. Therefore, the cigarette companies get the opportunity to make strong campaigning about their products. While this increases their sales revenue on one hand, the people of the countries become addicts to these products and are thereby harmed considerably from the negative effects of these products (Schwartz, 2011). As a matter of fact, these companies are making efforts to convince the different agents in the third world countries, such as, the public authority bodies (government bodies and policy makers), the media (both print and social networking media) as well as the general public, about the goodness of their products. Although the product packages and advertisements display a symbol of warning about the bad effects of smoking, the effect of these symbols is reduced to a large extent under the impact of the bold advertisements and marketing campaigns in favor the lifestyle benefits received from consumption of cigarettes. For example, tobacco companies sponsor big social events such as music concerts, corporate seminars and other events. These companies invite journalists in these programs and bear all expenses for their luxury fooding and lodging. All these activities play down the negative impacts of smoking and the health risks associated with it. In countries like Philippines and Indonesia, such campaigns make huge influence on the general image f the company in the minds of the public, which leads to the development of a positive image about this company among the target customer base. However, it is difficult to react to these activities and limit their effect since the exact influence of these activities is not measurable. According to the decision tree illustrated in the case study, goals of the company are optimized in this process. It can move the path of profit maximization and future growth. On the economy, also, these activities cast positive impact since there is national output rises and there is higher allocating of resources in these industries as profit level rises. However, it has a negative effect on the society and the individual. The social “good of life” (Anonymous, n.d.) is hampered as the population consumes products that ...Download file to see next pagesRead More
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