The Cigarette Papers "d0e16133"

Using Modern Marketing Techniques To Sell Cigarettes

As the public became increasingly concerned about the health dangers of smoking, the marketing of cigarettes became increasingly difficult. Thus, in addition to using the more traditional marketing methods, such as emphasizing the taste of the product and targeting various population segments, the industry attempted to develop more sophisticated marketing techniques, based on knowledge of smoking behavior; this new approach to marketing was the subject of a Smoking Behaviour—Marketing Conference held in Montreal, Quebec, from July 9 through July 12, 1984. The conference was attended by delegates from Imperial Tobacco Limited (ITL), the Canadian subsidiary of BAT, who worked in marketing or research in five countries (United States, United Kingdom, Australia, Germany, and Canada). The conference proceedings demonstrate that the tobacco companies took research about marketing at least as seriously as research about the health effects of their product.

Evidently, the purpose of the Montreal conference was to increase interaction between the marketing and research personnel at B&W and BAT, in order to devise methods of selling tobacco products in an increasingly

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unfavorable environment. In his opening remarks for the conference, P. J. Dunn, vice president of research and development at ITL, notes the importance of having a clearer understanding of smoking behavior:

One way of defining smoking behaviour has been the fundamental understanding of the complete smoking process, but I feel that this definition should be enhanced to include the complete smoker process. In other words we must understand all elements which make up our customer, his wants and needs, translate these, using product, pack imagery, advertising, into some specific brand direction which inevitably will meet those needs. The basic question that begs a response is how do we provide smoker satisfaction from a lower tar base with specifically enhanced acceptability traits, and at the same time help our consumer rationalize his decision to smoke in light of increasing external pressures .

... [T]he means by which this goal may be better accomplished would be if marketing and consumer research and product development techniques and methodologies are exchanged freely [emphasis added]. {1224.01, p. BW-W2-03186}

Dunn then outlines the purposes of the conference sessions:

1.	Provide a current focus and background on the existing MKTG/R&D interaction;
2.	Communicate the existing techniques and methodologies and how they are applied, looking at not only laboratory methodologies, but also case studies of identified marketing needs and R&D responses;
3.	To look at current research and future implications as they relate to compensation, sidestream, the role of nicotine, and the role that smoking behaviour in its broadest definition has overlapped with product development and finally to look at future social pressures specifically relating to smoking and health, biological indicators and other such topics;
4.	The last session, and probably the most critical, will look at future direction and how we as a group see our priorities and activities proceeding in order to maximize the synergy of the group [emphasis added]. {1224.01, p. BW-W2-03187}.

Topics covered at the conference included (1) discussion of a consumer survey; (2) an overview of research on human smoking behavior; (3) ITL's approach to marketing and new product development, segmentation, and models to explain brand-switching behavior; (4) marketing research methods; (5) the response of research and development to marketing needs; (6) a review of and update on the role of nicotine; and (7) social pressures, including consumer awareness of smoking and health issues. (The overview of nicotine presented is discussed in chapter 3.)

Wayne Knox, marketing director of ITL Canada, described ITL's sophisticated market assessment methodology to identify key consumer

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trends on a monthly basis. After analyzing these trends, ITL developed a "switching model" of marketing:

Smokers don't buy products[,] they buy brands. We sell a Marketing Mix—Product, Package, Ads, etc. {1224.01, p. BW-W2-03245}

In other words, the product itself is only one element that contributes to the consumer's decision to buy a particular cigarette.

The first area of discussion focused on knowledge of the consumer's smoking behavior—specifically, his or her brand-switching behavior. The delegates agreed that the companies needed to investigate the roles of product, pack, imagery, and advertising in brand switching. These discussions of consumer smoking behavior clearly show that the tobacco companies were interested in getting people to start smoking as well as to switch brands. The tobacco companies have continued to deny that their advertising induces people to start smoking. Nevertheless, the conference report states:

Since our future business depends on the size of this starter population set, it was considered important that we know why people start to smoke and this may be more important than why they continue to smoke [emphasis added]. {1224.01, p. BW-W2-03197}

Participants at the conference also discussed the significance of smoke components, including nicotine, in relation to development and marketing of a low-retention cigarette; market segmentation; target markets; third-party endorsements; and communication of the attributes of the product.