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Term Paper: Marketing Strategies of Phillip Morris Inc | Term Paper Queen

Sample Term Paper

A very good example of Philip Morris’s marketing technique could be analyzed from this fact that in the year 2002 Philip Morris USA didn’t run a single magazine advertisement for its most popular brand Marlboro.  Then what did they do to promote Marlboro? The answer to this question is that they choose another way of promotion, rather than renouncing the only medium available for its brand they started promoting Marlboro at the retail stores through discounts and other offers (Dipasquale, 2002).

To successfully implement this strategy a massive $350 million was invested by the company on price promotions for its top brands which also included Marlboro. Following this they also arranged programs and events that facilitated customer’s interaction and rewarded on their loyalty (Dipasquale, 2002).


In the cigarette industry price promotion remains the largest marketing approach in which companies are trying to compete on prices and discounts. The reason behind this factor is that the market becomes price sensitive with more and more players entering into the market.

Salomon Smith Barney who is a tobacco analyst says that the magazines are a useful place for the advertisement of cigarettes’ as the readers of the magazines would also be having a look at the ad, but another advertising technique which is more effective than magazines are the point of sale advertising or promotion.

The reason why point of sale promotion is given so much emphasis by Philip Morris is because they knew that through this they can market their product directly to the consumers. They don’t have to purchase any magazine or look out newspapers to find the promotional schemes. Rather than it was made very simple for the consumers as whenever they visited the retail outlets they view these banners well positioned on the display. The primary reason for such a high budget marketing campaign was to market their product directly.


Another innovative marketing strategy which was adopted by the company was that they constantly worked on their brand building programs and events. Another very famous campaign which Philip Morris launched was the “Boot Up” lottery. In this activity incentive was given to smokers who bought two packets of Marlboro. The incentive was a CD-ROM that contained clip art to design their own cowboy boots. After this promotional campaign 250 winners received their personal custom made pair of boots. According to Billy Abshaw manager media programs at Philip Morris this activity was designed to build equity in the brand and with that create news and excitement. The strategy worked as most of the Marlboro consumers associate it with adventure and excitement (Dipasquale, 2002).

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