...Business Ethics Second Paper – Deontological Analysis June 19, 2013 Direct-to-Consumer Drug Advertising: Ethical or Not? 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. (2) use that method, developing the argument in support of your case; In utilizing direct to consumer advertising for prescription drugs is the advertising “reasonably expected to be to everyone’s advantage”? and “attached to positions and offices open to all?” (DeGeorge 78) One of the predominate claims of the pharmaceutical companies that the advertisements educate the consumer, thus giving them more information to evaluate their needs and to speak intelligently with their doctor. So, is the information provided in an ad or commercial “reasonably expected to be to everyone’s advantage?” It is reasonable to assume that everyone is exposed to the ads with the various media outlets used, such as TV, radio, newspaper, magazines and so forth, but is the education to everyone’s advantage? The drug...
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...Direct-to-Customer advertising is “any promotional effort by a pharmaceutical company to present prescription drug information to the general public in the lay media" (DeLorme et al, 2011). Essentially the DTC method allows consumers to have influence over which medicines are prescribed to them because drug information is provided to them in advertisements. Advertising to consumers this way is a form of social marketing because it is “a tool or framework that relies on multiple scientific disciplines to create programs designed to influence human behavior on a large scale" (Edgar et al, 2011). Advertising to people like this is not social marketing because “although social marketing relies heavily on the incorporation of a communication strategy...
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...Direct-to-consumer advertising of prescription drugs has become a controversial subject. Proponents argue that such communication by the pharmaceutical industry leads to better-informed consumers and improved quality of care. Correctly done advertising can inform the public of certain diseases and Increase awareness about Illnesses. Learning about treatment options can motivate patient to contact their physicians and engage in a more informed conversations about their health concerns. Ads can shape an understanding for symptoms, which increase the likelihood that patients will receive appropriate care for conditions that are frequently under-diagnosed and under-treated. By helping patients identify problems early, Direct-to-consumer advertising can...
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...their product thru the media. Since the 1980's, drug companies started to advertise their products to the general public (www.fda.gov), since then raised many question from both medical professionals and the public. Questions such as: How does this affect the patient and physician relationships, does the ad give me as the patient enough information to consider the drug, and why doesn’t my physician prescribe this drug to me. These just are some of the questions patients are asking themselves while watching or reading these ads. These ads are known as Direct-to Consumer Ads or DTCA. We as patients go to our healthcare providers for health answer by way of medications, advice or recommendation. Physicians...
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...prescription medications are rising at rates that can be small, but noticeable to many. The general rise in drug prices can be attributed to a variety of factors. Although common factors like inflation can play a role in increasing drug prices, others are less well-known to the general population. Unfortunately, these factors result in massive information asymmetry, resulting in consumers not knowing why their medications increased dramatically over the course of several years. Several major factors will be discussed in this section. 5.1. Direct to Consumer Advertising One major factor that can help explain the increased price of prescription medications is the increased presence of...
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...the pharmaceutical representatives to the Doctor’s then to the consumer. Every day you see on television’s, in magazines, the radio, and on the internet advertisements of new drugs being developed that offer a possible cure. No one wants to be ill, but do these advertised drugs really cure one’s issue or just mask it temporarily according to their ad? Are the doctor’s really giving you the correct medicines to cure you or are they pushing a product for the pharmaceutical company for promotional purposes? The United States and New Zealand are the only two countries that consider direct-to-consumer pharmaceutical advertising, ethical. Drug advertising advise the consumers about key, treatable health conditions and foster doctor/patient dialogue. I believe when consumers see these advertisements they try to self-diagnose themselves and sometimes finding themselves seeking additional medical attention by going to their primary care physician. “A study has shown DTC advertising is likely to increase the demand rates of both the drug category and drug brand choices, as well as the likelihood the drugs would be prescribed by physicians.” (Woodard) Adversaries of “direct-to-consumer advertising (DTC) argue the FDA has inadequate resources and many claims make it on air.” (Woodard) The amount of regulatory actions engaged by the FDA against pharmaceutical companies and their marketing prescription drugs to consumers has tumbled intensely in recent years. In 1997 the DTC reduced...
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...Deontology Paper Direct-to-Consumer Advertising (DTC) has been a long disputed ethical dilemma. The United States and New Zealand are the only two countries that allow it. By using Rawl's principles of justice, I will explain to you why I feel that this kind of advertising is ethical. There are different kinds of justice. Commutative justice refers to transactions being just. This kind of justice involves keeping transactions fair to both parties of the transactions. The transaction will be fair if both parties "have access to all pertinent information about the transaction; enter it freely and without any coercion; and benefit from the transaction"(DeGeorge, pg 76). Commutative justice is central to business transactions, but distributive justice is central to the actions of the government. John Rawls formulated a theory of distributive justice. He developed these principles in hopes that all rational persons find them acceptable. The principles are universal, respect all people, and can be rationally accepted by everybody. Rawls felt that people would agree "to two specific principles of distributive justice" that can be used in "establishing a just constitution" (DeGeorge, pg 78).These principles are: • First: Each person is to have equal right to the most extensive basic liberty compatible with similar liberty for others. • Second: Social and economic inequalities are to be arranged so that they are both a. reasonably expected to be to everyone's advantage and b...
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...Marketing Communication and Personal Selling CHIPS AND DIPS ARE HARDLY BIG-TICKET ITEMS. MOST PEOPLE DON’T THINK TWICE ABOUT THE BAG OF CHIPS OR CHEESE SNACKS THAT THEY THROW INTO THEIR SHOPPING CARTS. CONSUMERS JUST KNOW THAT THE FRITO-LAY NAME AND ITS BRANDS MEAN GOOD-QUALITY, GOOD-TASTING SALTY SNACKS. REVENUES AT FRITO-LAY, A SUBSIDIARY OF PEPSICO, GREW BY MORE THAN $600 MILLION—6 PERCENT—IN ONE YEAR ALONE. ANNUAL WORLDWIDE SALES OF FRITO-LAY SNACKS ARE OVER $10 BILLION. IMAGINE SELLING BILLIONS OF DOLLARS IN CHIPS A YEAR! Americans know Frito-Lay brands at sight: Doritos, Fritos, Lay’s, Cheetos, Ruffles, Rold Gold, and Baked Lay’s, to name its most popular. But how did Frito-Lay get where it is today? How has the company developed such astounding sales and loyalty among chip aficionados? Much of it has to do with Frito-Lay’s promotional plan, encompassing advertising, sales promotion, public relations, and personal selling. With a $30 million a year U.S. ad budget, Frito-Lay has plenty of opportunity to get its message of great-tasting snacks across to consumers. Frito-Lay has been a long-time repeat advertiser during the annual Super Bowl telecast, shelling out more than a million dollars for just one ad during the program. The vast audience provided by the Super Bowl telecast has proved to be an excellent launching pad for Frito-Lay’s new brands, such as Baked Lay’s Potato Crisps in 1995 and Lay’s Deli Style Potato Chips in 1998. Baked Lay’s went on to become the...
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...2. How does direct-to-consumer advertising affect the field of pharmacy? The only positive aspect to the direct-to-consumer advertising is it is an avenue for patients will ask questions based on the drugs that are advertised. I believe this helps with the patient education aspect of the job. If patients ask questions about the drugs are advertised, they may start asking questions about the medications that are prescribed to them as well. The drawback to direct-to-consumer is the patients may prefer the drugs that are advertised opposed to the more efficient drugs. If this occurs, the pharmacist can further educate patients on why the advertised drug is not the best option. This can potentially weaken the relationship between the pharmacist...
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...The third aspect considers whether all rational beings, thinking rationally, should accept it regardless of whether they are the agent or the receiver of the action” (DeGeorge 67). While considering a principle or action, we must also consider it from the point of view of the receiver. John Rawls, a deontological philosopher, created a way to apply this categorical imperative by using a veil of ignorance to consider whether a practice is fair to all affected parties. “A fair or just solution is one that all would agree to behind a veil of ignorance” (DeGeorge 78). As a stakeholder in a pharmaceutical company, one believes that direct-to-consumer drug advertising is fair and moral because they want to market their products by informing the...
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...MGMT 368 Business Ethics Week 4 Deontological Second Paper April 15, 2012 Direct-to-consumer drug advertising - Deontological Point ofView For many years, consumers relied and depended on the expertise and knowledge of physicians to make decisions on their pharmaceutical needs. Before 1985, prescription drugs could not be advertised directly to consumers. The U.S Food and Drug Administration passed a rule that allowed Direct-to-consumer drug advertising in 1985. This ruling was passed on the condition that warning information was provided about side effects and other dangers. “Directto- consumer advertising is the promotion of prescription drugs through newspaper, magazine, television, and internet marketing. Drug companies also product a range of other material, including brochures and videos, that are available in doctors office or designed to be given to patients by medical professions or via patient groups.” ("Source Watch") Currently the United States and New Zealand are the only two developed nations that allow direct-to-consumer advertising of pharmaceutical drugs. Other nations feel that direct-to-consumer advertisements are often just sales pitches that pressure doctors to make unnecessary prescriptions. ("Prescription drug ads") I favor direct-to-consumer advertising/marketing of pharmaceutical drugs and believe that it is ethical. In this paper I will be using the deontological ethics of Immanueal Kant' s Theory to support my reasoning. Immanuel Kant...
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...Unit 11: Advertising and Direct Marketing Advertising: Advertising is any paid form of nonpersonal presentation and promotion of a product by an identified sponsor using the mass media that is intended to inform or persuade members of a particular audience. For many, advertising is the most familiar and visible element of the promotion mix. Because it can convey rich and dynamic images, advertising can establish and reinforce a distinctive brand identity. This helps marketers bond with customers and boost sales. Advertising is useful in communicating factual information about the product or reminding consumers to buy their favorite brand. Advertising sometimes suffers from a credibility problem because cynical consumers tune out messages they think are biased or are intended to sell them something they don’t need. Advertising can be expensive; therefore, firms need to take great care to ensure their messages are effective. Mass consumption and geographically dispersed markets make advertising particularly appropriate for marketing products using the same promotional messages to large audiences. Types of Advertising: Product Advertising Product advertising is an advertising message that focuses on a specific product. This is the type of advertising the average person usually thinks of when talking about most promotional activities. Institutional Advertising Institutional advertising is an advertising message that promotes the activities, personality, or...
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...of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. THE FIVE MAJOR PROMOTION TOOLS The Nature of each Promotion Tool ADVERTISING Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix. Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. For example, advertising includes broadcast, print, Internet, mobile, outdoor, and other forms. Advertising Objectives The first step is to set advertising objectives. These objectives should be based on past decisions about the target market, positioning and marketing mix, which define the job that advertising must do in the total marketing program. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purpose – whether the aim is to inform, persuade or remind. Informative advertising – this advertising is used to inform consumer about a new product or feature or to build primary demand. Persuasive advertising – this type of advertising is used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. Some persuasive advertising has...
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...Lindsay Hamberg Professor Michele Martis ENG 112 14 October 2015 Prescription Drugs in Today’s Media Direct-to-consumer advertising of prescription drugs has quickly become a part of everyday life in the United States in the past few decades. Advertisements for these drugs can be found everywhere you look including television commercials, magazines, newspapers, the internet, radio, pamphlets or posters in waiting rooms at doctors’ offices and more. The pharmaceutical industry spends billions of dollars a year on these advertisements alone. Some people might think that this form of advertising has no negative effects, but in reality it’s full of them. They can misinform patients and encourage over medicating as well as damage the relationship...
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...Online Advertising Really Moves Offline Product Steve Warshaw, VP, Business Development, ACNielsen Phil Cara, Director, Yahoo! Inc. 6 Consumer Insight | Summer 2004| c o v e r s t o r y A woman goes online to research a question about her dog’s health. While surfing Yahoo!, she sees a dog food ad. Later that week, she goes to the store and encounters the same brand of dog food. She buys it. Breakthrough stuff? Absolutely. It may sound ordinary: Consumer sees ad; consumer responds. Yet in the world of e-commerce, manufacturers of consumer packaged goods have never been sure how often exposure to a product message online translates into a product purchase offline. Now they can be. Since 2002, ACNielsen and Yahoo! have been working together on a measurement tool to assess the correlation between a person’s surfing and shopping habits. This joint effort is called Yahoo! Consumer Direct— powered by ACNielsen, and for 18 months, Consumer Direct has combined the reach and technology of Yahoo! with the analytical tools of ACNielsen Homescan. The program evaluates the effectiveness of online advertising and promotions by consumer packaged goods (CPG) companies like PepsiCo, Kraft, Unilever and Nestlé. The study results are consistent—and satisfying. They indicate that online promotions can lift offline sales time after time, whether the item in question is a food, personal care or household product. Furthermore, each campaign has typically brought in more than twice the...
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