Running Head: False Marketing & Advertisement by Pharmaceutical Companies
Strategic Marketing Ethics Paper
False Marketing & Advertisement by Pharmaceutical Companies
Leslie Irizarry
Monroe College – King Graduate School
Dr. Cato- 15SP-MG660-101
25 March 2015
Author Note
Leslie A Irizarry, Department of Business, Monroe College- King Graduate School
Correspondence concerning this analysis and answers of questions should be addressed to Leslie A. Irizarry, Department of Business, Monroe College- King Graduate School, Ustin Hall, 2501 Jerome Avenue, The Bronx, NY 10468.
E-mail: lirizarry0719@monroecollege.edu
Ethics in marketing is values and principals that regulate business practices for marketers who promote products or consumer services. In today’s society, false advertising and marketing practices are trending. This writer has chosen the topic of false advertisement and marketing practices of pharmaceutical companies. Marketing by pharmaceutical companies are often called pharma marketing or medico marketing. Other than the United States, New Zealand is the only other country that allows advertising drugs directly to consumers. According to PEW Charitable trust organization, an overwhelming “$3 billion dollars was spent in 2012 for advertising directly to consumers, and $24 billion dollars on marketing directly to the physicians who prescribe the drugs’. In 1983 the FDA offered its first guidance on consumer directed advertisements and in 2001
Correspondence concerning this project should be addressed to: David A. Gatti, Liberty University, Graduate School of Business, Lynchburg, Virginia 24515.
This paper is concern with legal and ethical issues in advertising, marketing, regulations and intellectual property of product safety with respect to PharmaCARE which is a pharmaceutical company. The paper includes the information regarding drug companies, Direct to Consumers (DTC) marketing. Next we will
New Zealand is the only other developed nation in the world where prescription drugs are advertised directly to consumers. The American pharmaceutical industry used to abide by a term “ethical marketing,” meaning that drug companies could only market to physicians. On the other hand, there is a valid argument for allowing direct-to-consumer drug advertisements as the flow of information and transparency are beneficial. However, there obviously needs to be some checks and balances. This experiment began with a print advertisement in 1981 in Reader’s Digest and the first TV ad took place in 1983. At that time, the FDA had several rules in place requiring companies to offer a fair and balanced presentation. In sum, this was a responsible era of advertising.
This paper takes the stand that direct-to-consumer (DTC) advertising of pharmaceutical drugs is unethical. This stand is based on the belief that many developed countries in the world have banned such kind of advertising because they believe that it is unethical. I believe that the advertising of pharmaceutical drugs is unethical because it gives consumers hope that a specific drug can cure their disease. However, this might not be the case as only a qualified medical practitioner can prescribe the right medication to treat a particular disease or condition. This is a major issue given that many consumers might prefer to be treated with an advertized pharmaceutical drug, yet it might not be the best drug for their specific ailment. It is believed
Despite this, the industry did not alter its ways, maintaining that its ad campaigns were "educational," and that people were able to make their own decisions about what they purchased (Payer 66). However, it is evident that the advertisements produced by the pharmaceutical industry are designed for the very purpose of making it difficult for people to make these decisions independently. This marketing produces a large number of often deceptive, misleading tactics which have a large influence on both consumers and medical practitioners. The chief beneficiaries of this marketing are not the consumers but the pharmaceutical companies themselves.
The United States and New Zealand are the only developed countries that allow direct-to-consumer advertising. Whether the practice of direct to consumer advertising is beneficial to the consumers or not is a highly debated subject with both positions presenting sound reasoning for their position. Whether the practice is beneficial or not to the consumer is not the question, but rather, is advertising prescription drugs directly to consumers ethical? To analyze this question I will use Rawls’s second principle of distributive justice for analysis.
Is a patient at liberty to diagnose his or her own affliction? If so, are they also qualified enough to know the right medication and take into consideration the drugs adverse effects? With the recent onset of direct to consumer advertising for prescription drugs, this is becoming the case. In 1994, expenditures on direct to consumer advertisements were about twenty-five-million a year. By 1998 that figure changed to about 225 million (Sasich 2). Turn on the TV, there they are. Open your favorite magazine, there they are again. Listen to the radio, congratulations, you’ve found another ad for the latest prescription drug. Rush down to your local
In the January 18th 2016 issue of People Magazine, AstraZeneca ran an advertisement for Seroquel XR, an atypical antipsychotic. This advertisement was just one of seven prescription drug advertisements in the 94 page magazine, all urging readers to ask their doctors about a medication. These seven advertisements are a small sample of the direct-to-consumer (DTC) advertisement that flood television, radio, magazines, newspapers, and websites in the United States. The debate about whether DTC advertisement for psychotropic medication provides the consumer with more information and power over their medical care and reduces stigma or whether it leads to physicians to prescribing medications before assessing other treatment options and adds to the
The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.
There are proponents of DTC prescription drug ads. They argue that “the ads inform patients about diseases and possible treatments, encourage people to seek medical advice, help remove stigma associated with medical conditions, and provide needed sales revenue to fund costly research and development (R&D) of new drugs (Drug Ads ProCon.org).” On the flip side opponents argue “that DTC drug ads misinform patients, promote drugs before long-term safety-profiles can be known, medicalize and stigmatize normal conditions and bodily functions like wrinkles and low testosterone, waste valuable medical appointment time, and have led to our society’s overuse of prescription drugs (Drug Ads ProCon.org).”
There is total 24 limited number of research on reviewing the impact of over-the-counter drug advertising since 1970 until now. On the other side, total 160 research articles of Direct-to-consumer advertising prescription drugs is already published within the last 12 years duration.
Ever since the legalization of direct-to-consumer pharmaceutical advertising in 1985, drug companies have grown and greatly increased their spending, making this the most popular type of health communication to the general public. From 1996 to 2005, the total amount of spending on pharmaceutical advertisements increased by 3252 million dollars and the percentage of drug sales increased by 1.4 percent (New England Journal of Medicine). This positive increase in sales is why the United States allows for these advertisements to be aired, they bring in revenue and as people become more sick, they will continue to buy more drugs and increase the revenue. However, even with all this spending, after observing hours of television on three different channels, I found it surprising on the limited amounts of pharmaceutical advertisements that were presented. For the network CBS, there were three drug advertisements, for CNN there were four and for the network AMC, there were only two of the same commercial. This trend shows how different airing times affect different populations of people. I watched CNN at 11:30 in the morning, a more common
Using this Deontological approach we will look at the pharmaceutical advertising. As a free nation, we have the right to life, liberty, and the pursuit of happiness. Furthermore, there is a moral obligation for us to do what is right. From the corporate perspective, nearly all other businesses are allowed to advertise. The purpose of advertising from a corporate perspective is to teach individuals what their products offer the public so they can increase profit for the company. There are rules that they have to follow to ensure the information is accurate. There is nobody forcing a purchase of the drugs, it is mere information that is available to all public for their benefit. There is a choice that is made by the public. They will either choose to purchase the drugs that will help them, or will not. From the public perspective, they want to have access to the information that will help them lead a better life regardless of who they are. Under the veil of ignorance, we should all be able to know and understand every option that is available to us so that we can live happier and healthy lives. Pharmaceutical products offer people a better way to live their lives no matter who you are. There are drugs for arthritis that help people live better by reducing pain and increasing mobility; drugs for helping people get a better night of sleep; drugs for
This document is authorized for use only by Albertina Dias at ISG Business School until September 2013. Copying
The author of the article “Consumer Drug Advertising Should be Banned”, Kurt C. Stange, show his Ethos, he is a professor of culture and family medicine at Case Western Reserve University, making a good credibility for the reader, it gives a sense of trustworthiness by he been a professional in the field of culture health. His Logos are that now this days, culture is having a drastic shift by seeking pills for everything, for every symptom. Can be assume that he is referring of drug addiction, by depending on pills on daily basis. For Stange’s Pathos, he uses the example of Rosy’s advertisements in the quote “medication should be motivated by observations of patients and physicians, not stimulated