Tobacco companies have long argued that their marketing efforts do not increase the overall demand for tobacco products and have no impact on the initiation of tobacco use among young people rather, they argue, they are competing with other companies for market share. Even so, variations of many of the marketing practices used by Duke continue to be important marketing tools for today’s tobacco companies, as discussed in this chapter. markets for tobacco products have remained highly concentrated, with little price competition.

tobacco markets in the early twentieth century before antitrust actions dissolved the trust in 1911.

These strategies contributed to the growth of Duke’s American Tobacco Company, which came to dominate U.S. Duke’s marketing practices included setting relatively low prices, providing sophisticated packaging, carrying out promotions such as including picture cards in cigarette packs and sponsoring various public events, and paying distributors and retailers to promote his brands ( Kluger 1996). In the late nineteenth century, James Buchanan Duke used the cost advantages he gained from his adoption of James Bonsack’s mechanized cigarette rolling machine to aggressively market his cigarette brands ( Chaloupka 2007). Tobacco companies were among the earliest companies to identify and implement effective, integrated marketing strategies, and cigarettes and other tobacco products have long been among the most heavily marketed consumer products in the United States ( Brandt 2007). These techniques include product design, packaging, pricing, distribution, product placement, advertising, and a variety of promotional activities. In most developed countries, businesses use a broad variety of marketing techniques to increase their sales, gain market share, attract new users, and retain existing customers.

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