Legal 500 Paper 4

Consumers VS Corporate VS Intellectual property

LEG 500 Managerial Economics and Globalization

Dr. Sebastian Rainone

18 December, 2014

If a company is producing a good or service, they expect that their employees will not attempt to sabotage the image, products or service they provide. That is not always the case so policies and implementations need to be put in place to prevent this. Sometimes the company may be putting itself at risk by its own actions. Either way, there may be a lot of considerations to take here.

In terms of marketing, companies have to be very careful how they select their audience. Selective marketing can be used to taper the field of customers that are desired. However, there are ways in which it can be negatively used to narrowly exclude customers. “Examples of unethical market exclusion are past industry attitudes to the gay, ethnic minority, and plus-size markets.” (Issues in Marketing) CompCARE did not violate this practice; however they did embark on the reputation of PharmaCARE to sell their product, which means they knew who would need or want the drugs. It is questionable though with their marketing technique that they had doctors fax fictitious patients list in order to justify why they were pushing hard sales to hospitals, clinics, and physician offices.

“Through negative advertising techniques, the advertiser highlights the disadvantages of competitor products rather than the advantages of their own. These methods are especially used in politics.” (Issues in Marketing) Based on the information that is given, it is not clear that PharmaCARE or CompCARE violated this ethical issue on the drug. Both companies could have ran clean advertising campaigns that highlighted the benefits the diabetes drug, the ability to slow down Alzheimer’s and the ability to customize to each consumer.

However, PharmaCARE did violate this ethical issue by disguising itself as a “new” company for the sole purpose of selling AD23 as...