Question

ETHICS EXERCISE Read the following text and answer the questions. In today's business environment, ethics are extremely important. In recent years, there have been numerous scandals and trials that stem from a lack of ethical judgment. For this reason, we are including an ethical exercise in every chapter. A brief scenario will present you with a situation in which the right thing to do may or may not be crystal clear, and you will need to decide the ethical way out of the dilemma. To help you with these decisions, we will often refer you back to the AMAs Statement of Ethics, found online at http://www.marketingpower.com. This will give you a resource for the exercise and will also help reinforce the ethical standards that marketers should uphold. Rani Pharmaceuticals is the maker of several popular drugs used to treat high blood pressure and arthritis. Over time, the company has developed a positive relationship with many of the patients who use its medications through a quarterly newsletter that offers all the latest information on new medical research findings and general health and fitness articles. The company has just been acquired by a group of investors who also own Soothing Waters Hot Tubs and Spas. The marketing director for Soothing Waters would like to use Rani's mailing list for a direct-mail promotion. Questions 1. What should Rani Pharmaceuticals do? 2. Do you think it is ethical to u se customer information across multiple divisions of the same company? Explain. 3. To which marketing management philosophy do you think the marketing director for Soothing Waters subscribes? Explain.

Answer 1

answer-

1- Rani Pharmaceuiticals should do a meeting with marketing director of sooting waters to discuss the issue of privacy. Rani pharmaceuiticals should advise marketing director to create a communication medium with patients to first make them inform about thier promotional strategy and then get consent if they want to recieve direct mail promotion or not.This will help Rani Pharamceutical to keep intact the trust of patient in the company and company will be more transparent and fair to both marketing director and patients.

2- It is ethical only if the information does not harm or cause problem to customers and consent is provided by the customers to use their information. Information that harms or cause problem in their life like too much promotion may frustrate may customers so only use information of customers who provide their consent to it.

If information is beneficial like provide new knowledge on treatment, provide discounts and offers on new products or services from different division of company then it would be ethical because it benefits customers intead of harming them.

3- The marketing director of soothing waters subscribes selling concept of marketing management philosphy. It is the concept where marketing director focuses on making sale by any means possible without considering that patient of rani pharmaceutical needs its product of sooting water and spa or not. he just want to make sale of the products.