Tobacco companies spend more than ever to market cigarretes, but their sales aresteadily falling. They spent billions on advertising and promotions in 2002, which is the lastyear that data is availible. There had been a slight increase but it then dropped about 5.5%.The companies are spending large chunks of their budjet on discounts which were passedto retailers ...view middle of the document...
Thecompanies also have to pay retailers for shelf space, this and other promotional allowancestook a 1.3 billion dollar chunk out of their budget.The President for the Campaign forTobacco Free Kids said that these efforts to reserve shelf space and reduce prices areaimed at trying to hook young people. He says that the most price-sensitive population arekids and that the tobacco companies know that. On the other hand a spokesman for the #2cigarrete maker says the his company is trying to win over adults not children. He says theirefforts are to communicate with and gain the business of the adults who choose to smoke. Ithink the tobacco companies can say that they are trying to gain the busines of adults, butthey know that they are also trying to appeal to kids. Kids who smoke are more likely to growup to be adults who smoke, than kids who choose not to smoke. But with this new fall insales, that means either more adults are quitting, or kids aren't buying, which in my opinion,either sounds good.
