Big Pharma's Marketing Tactics
Case analysis of Big Pharma’s Marketing Tactics
Understanding Big Pharma:
The US Pharmaceutical industry is the 2nd most profitable industry in the country. The nature of the industry follows an oligopoly form; with the big players yield much influence, hence lending to its name, “Big Pharma”. By 2010, Big Pharma has a staggering 526 lobbyists and gives an estimated $19 billion worth of gifts to physicians annually.
Understanding Business ethics:
The definition of ethics is given by as follows, “Ethics are moral principles that govern a person’s behavior or the conducting of an activity.” (Lawrence & Webber, 2008) Basically, they are the issues of identifying right and wrong in our daily life, serving as a moral compass. Then what are business ethics? Business ethics is the application of general ethical ideas towards business behavior (Lawrence & Webber, 2008). Due to the diversity in the modern world, different organizations and industries have different perspectives towards business ethics. Hence, with respect to business ethics, this report will review the application and implication in Big Pharma’s marketing tactics.
Understanding the stakeholders of Pharmaceutical industry: 1. Consumers.
They will be directly affected by the marketing practices by Big Pharma, as the immediate users of its products. Usually, consumers have a strong voice in determining the companies’ profits. However, it is different in the pharmaceutical landscape, due to their expertise in its product knowledge. As such, consumers are often at the losing end.
2. Community
With the pharmaceutical being a burgeoning industry in the society, concerns from public will naturally grow. Based on a recent poll, public perceptions towards Big Pharma are largely negative, indicating their low level of trustworthiness. Consumers, which form part of the community, can also be represented through interest groups or watchdogs.
3. Industry
Understanding Big Pharma:
The US Pharmaceutical industry is the 2nd most profitable industry in the country. The nature of the industry follows an oligopoly form; with the big players yield much influence, hence lending to its name, “Big Pharma”. By 2010, Big Pharma has a staggering 526 lobbyists and gives an estimated $19 billion worth of gifts to physicians annually.
Understanding Business ethics:
The definition of ethics is given by as follows, “Ethics are moral principles that govern a person’s behavior or the conducting of an activity.” (Lawrence & Webber, 2008) Basically, they are the issues of identifying right and wrong in our daily life, serving as a moral compass. Then what are business ethics? Business ethics is the application of general ethical ideas towards business behavior (Lawrence & Webber, 2008). Due to the diversity in the modern world, different organizations and industries have different perspectives towards business ethics. Hence, with respect to business ethics, this report will review the application and implication in Big Pharma’s marketing tactics.
Understanding the stakeholders of Pharmaceutical industry: 1. Consumers.
They will be directly affected by the marketing practices by Big Pharma, as the immediate users of its products. Usually, consumers have a strong voice in determining the companies’ profits. However, it is different in the pharmaceutical landscape, due to their expertise in its product knowledge. As such, consumers are often at the losing end.
2. Community
With the pharmaceutical being a burgeoning industry in the society, concerns from public will naturally grow. Based on a recent poll, public perceptions towards Big Pharma are largely negative, indicating their low level of trustworthiness. Consumers, which form part of the community, can also be represented through interest groups or watchdogs.
3. Industry
References: 1. Lawrence & Webber (2008), Business & Society (12th edition), McGraw Hill International Edition, Page 27 (Stakeholders), 90 (Ethics & Business Ethics), 107 (Whistle-blowing), 117-119 (Marketing Ethics), 130-131 (Ethics & Laws) 2. SAPI code of marketing practices, http://www.sapi.org.sg/mktg.htm, accessed from Feb 6 2012. 3. “Drugs: Why drugs costs so much?” MedicineNet, http://www.medicinenet.com/script/main/art.asp?articlekey=18892, accessed from Feb 6 2012. 4. “Big Pharma Spends More on Advertising Than Research and Development, Study Finds.” Science Daily (January 2008), http://www.sciencedaily.com/releases/2008/01/080105140107.htm, accessed from Feb 6 2012. 5. “Pharmaceutical Fraud: How Big Pharma’s Marketing and Profits Come before Consumer Safety and Wellness.” Naturalnews. http://www.naturalnews.com/z020345.html, accessed from Feb 7 2012. 6. “Pfizer Broke the Law by Promoting Dugs for Unapproved Uses,” Bloomberg (November 2009), http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4yV1nYxCGoA, accessed from Feb 7 2012 7. Pharmaceutical industry, http://en.wikipedia.org/wiki/Pharmaceutical_industry, accessed from Feb 8 2012. 8. Pharmaceutical marketing, http://en.wikipedia.org/wiki/Pharmaceutical_marketing, accessed from Feb 8 2012.