Adaptive Strategies of Tobacco Firms Subsequent to the 1998 Master Settlement Agreement: An Examination of Emergent Tobacco Promotional Mix Efforts

This article uses the promotional mix framework to examine tobacco promotional efforts in five distinct categories: advertising, sales promotion, direct marketing, personal selling, and public relations. We specifically explore how tobacco companies are adapting their promotional efforts in each category subsequent to the 1998 Master Settlement Agreement (MSA) among the five largest tobacco companies and 46 states. We utilize primarily marketing popular press literature and a comparison between 1998 and 1999 tobacco promotional expenditures to provide a comprehensive picture of emergent tobacco promotional efforts in response to the new restrictions. Numerous adaptations within each category are examined. In particular, substantial new expenditures in the areas of trade-oriented sales promotions, direct marketing, and public relations activities are revealed. Specific tactics being used in each of the five promotional mix categories are discussed.