Sparrow 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 the latest information on new medical research findings and general health and fitness articles. The company just has 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 Sparrow’s mailing list for a direct-mail promotion.
What should Sparrow Pharmaceuticals do?
Sparrow Pharmaceutical has to take immediate action to secure its customer data. The company has enabled the customer’s trust due to data security. However, after being acquired by the other company, the management should revisit its security measures and authorize the mailing list. The marketing director of the new company wants to use the mailing list for promotions. If he has access to the mailing list, he may claim his right to use it. On the other hand, if the information is secured, he may be restrained from using the information. Thus, making the data system secure is the first option. Also, the company may also inform customers about the new business division. It should tell customers regarding possible new promotions. Instead of giving awful surprises to customers, it looks better to tell them about new changes. Sparrow Pharmaceutical should consider these options to avoid any uncertainty.
Do you think it is ethical to use customer information across multiple divisions of the same company? Explain.
I think that it is unethical to use customer information by all divisions of the same company. For Instance, Sparrow Pharmaceutical made the list of customers, which are loyal. The positive relationship due to high-quality services is quite visible. The new business division needs a new customer list. These patients have become loyal customers of the company, and any irrelevant promotion may frustrate them. It is unethical because it can convert the loyal customers of the one division of the business. Soothing Waters wants to save cost and time and promote products to existing customers of the business division. Soothing Waters wants to reach Sparrow Pharmaceutical’s customers without permission and authorization. It is also one of the prominent reasons which make this decision unethical. Separate customer segments should be shaped by these divisions to be ethical. It can also ensure long-term business relationships and sustainability (Hung & Wong, 2009).
To which marketing management philosophy do you think the marketing director for Soothing Waters subscribes? Explain.
The selling concept is a prominent marketing management philosophy. This concept tells that the customer cannot buy a product without getting promotions and other selling tactics. Interestingly, customers of Sparrow Pharmaceuticals may find Soothing Water products irrelevant. These are products that the customer will not buy. However, the marketing director knows the customer’s psyche and wants to shape promotional activities to enhance the attraction and positioning. The marketing director understands the selling concept and it worth of products. The concept utilization is brilliant, but it is unethical because he is going to use customers of the other business division without mutual concerns.
Does the AMA Statement of Ethics address the use of customer information by multiple divisions of the same company?
AMA statement of ethics streamlines high standards and values for customers. The most important thing is to consider what the community finds desirable, proper, and essential. These customer values are to be considered to take action (Ama.org, 2018). Overall, the ethic statement depicts the customer value and relevant activities of an organization to enhance loyalty and satisfaction. This statement does not address the use of information about the customer by all divisions of the same company. Various divisions many contain separate management structure and customer segments. Thus, the customer information can be manipulated by other divisions, and it goes against the AMA statement of ethics. For Instance, Sparrow Pharmaceutical’s customers are willing to have excellent services such as treating high blood pressure and arthritis. Products of Soothing Waters are not desirable. Thus, it seems better to conduct market research to find the potential target customers and make a new mailing list.
In the end, it is to conclude that business ethics can help to sustain the business for a long run in the competitive market. Customer information should not be manipulated, as it must be protected at any cost to make them loyal and satisfied.
References
Ama.org. (2018, January 10). Statement of ethics. https://www.ama.org/AboutAMA/Pages/Statement-of-Ethics.aspx
Hung, H., & Wong, Y. H. (2009). Information transparency and digital privacy protection: are they mutually exclusive in the provision of e-services? The Journal of Services Marketing ,23 (3),154-164.
+447462439809