Marketing in a regulated market Essay Example | Topics and Well Written Essays - 1250 words

Marketing in a regulated market - Essay Example 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 com pany 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 â€Å"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 â€Å"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 wedgin g 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