The Primary Ethical Concern, Term Paper Example

The primary ethical concern associated with this marketing strategy is that this method is designed only to explain the benefits of the drug to the physicians. According to the Prescription Drug Marketing Act of 1987, it is essential for healthcare companies to legally avoid “the unacceptable risk to American consumers from counterfeit, adulterated, misbranded, subpotent, or expired drugs” (FDA, 1987). Although this law has been modified overtime to extend to marketing conducted on the radio, television, and other forms of media, it also extends to direct marketing to healthcare professionals.

A secondary concern involves the proper behavior of the sales representative. Since they are being promised bonuses if they are able to increase sales of the drug, it is important to consider the types of things that they may and do in order to ensure that the physician prescribes the drug. While it is typical and acceptable for a sales representative to take a physician out to a business lunch to discuss the drug and the potential benefits that it could provide to their patients over existing pharmaceuticals, it is not legal for them to utilize bribery in any way. For example, the sales representative is not able to offer additional money out of pocket for each prescription issued, such as a percentage of the bonuses that they are awarded.

As a manager of the division, it is essential to ensure that the drug is marketed in a positive light but not in a manner that prevents the truth about potential side effects and hazards from being discussed. While it would be legal to issue DVD’s and brochures that highlight the benefits of the drug, it is also necessary to ensure that the physicians are provided all relevant information about the drug. It is important to emphasize that even negative effects of the drug could be marketed in a positive light. For example, a drug that has several negative side effects could be justified based on its efficacy compared to other therapies. In addition, if a detrimental side effect could be treated using combination therapies, it could be presented as a non-issue.

An important way to resolve this potential unethical behavior would be to provide the physicians with an introductory explanation of how the drug works in medical terms, including a complete review of its pharmacokinetics and pharmacodynamics. After this information is disseminated thoroughly, the marketing campaign could then focus primarily on the benefits of the drug from this point forward. However, the trained speakers should be aware of the negativities of the particular drug and be prepared to answer questions about these if they arise. In order to ensure that the drug remains favorable among potential prescribers, the speaker should be knowledgeable enough about the drug to be able to spin this information in a positive light. It is essential to ensure that the sales representative are also informed of the potential dangers of the drug and have a similar ability to market the product despite potential inadequacies.

An article entitled “The Relevance of Ethical Salesperson Behavior on Relationship Quality: The Pharmaceutical Industry” describes the unethical behavior occasionally exhibited by sales representatives in the pharmaceutical industry (Legace et al., 2013). This study found that while sales representatives believe that their unethical behavior will have a positive impact on sales, this is often not the case. It claims that, “In regression analyses, ethical behavior and expertise of pharmaceutical salespersons impact both trust of the salesperson and satisfaction with the exchange as reported by physicians” (Legace et al., 2013). Therefore, it is neither acceptable nor beneficial to the pharmaceutical company to allow this behavior to occur. As a consequence, as a manager, it may be useful to reconsider the bonus system that was promised to the sales representatives. Although informing the employees that participating in these unethical practices are detrimental to business and could cause them to face expulsion from the company would be somewhat useful, it is impossible to determine whether a warning is sufficient to ensure that these practices do not take place. By offering a higher pay for more sales to the employees, the company is nearly ensuring that the employees will not behave in an ethical manner because they will be driven by the want for additional income. Therefore, it is essential for the company to find alternative ways to motivate its employees.

A second way that unethical behavior of the company’s employees could negatively impact business is discussed in “The Commitment-Trust Theory of Relationship Marketing” (Morgan et al., 1994). This study indicates that it is more beneficial for sales professionals to gain the trust of their clients. When this occurs, the salesperson is more likely to earn more sales because the client will be a return customer. Before the next major marketing campaign occurs, a marketing campaign should be implemented that explains this principle to employees. If the company feels that they will behave properly, they will be awarded through use of the bonus scheme. Otherwise, this will be avoided.

References

FDA. (1987). Prescription Drug Marketing Act of 1987. Retrieved from             http://www.fda.gov/RegulatoryInformation/Legislation/FederalFoodDrugandCosmeticActFDCAct/SignificantAmendmentstotheFDCAct/PrescriptionDrugMarketingActof1987/

Morgan RM, Hunt SD. (1994). The Commitment-Trust Theory of Relationship Marketing. 58(3): 20.

Lagacea RR, Dahlstromb R, Gassenheimerc JB. (2013). The Relevance of Ethical Salesperson Behavior on Relationship Quality: The Pharmaceutical Industry. Journal of Personal Selling & Sales Management, 11(4): 1991.