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Answer to Question #81730 in Other Marketing for Ashley

Question #81730
The sale of cigarettes in many developed countries either has peaked or is declining. However, the developing markets represent major growth markets. Should U.S. tobacco companies capitalize on this opportunity?
Expert's answer

The answer is yes. The U.S. tobacco companies should not hesitate, but to capitalize on the opportunities available in the developing markets. Exploiting the opportunity would be the right move to make because the main reason for being in business is to generate revenue and make profit. The fact that the sale of cigarettes in the developed markets has either peaked or is declining means that these markets are becoming unprofitable. Therefore, continuing relying on the developed countries as a market is not good for American tobacco businesses as it means customers are declining and they could soon lack customers to sell their tobacco. As such, to ensure business growth and long-term survival, the U.S. tobacco companies should consider expanding their businesses to developing markets that present major growth opportunities due to high growth of tobacco consumption, which would translate to high sales and profits for the U.S. tobacco firms. However, in order to succeed in the developing markets, the U.S. tobacco companies will have to ensure that they align their marketing strategies, especially the 4P elements of the marketing mix to the needs of smokers in the developing markets in addition to ensuring that they respond to the legal, political and cultural issues that might affect how their tobacco products will be received in the developing markets.

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