Question

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.


Ethics Questions:

What should Sparrow Pharmaceuticals do?

Do you think it is ethical to use customer information across multiple divisions of the same company? Explain.

To which marketing management philosophy do you think the marketing director for Soothing Waters subscribes? Explain.

Does the AMA Statement of Ethics address the use of the customer information by multiple divisions of the same company? Go to http://www.marketingpower.com and review the statement. Then write a brief paragraph on how the AMA Statement of Ethics relates to Sparrow Pharmaceuticals’ dilemma.

Answer 1

Sparrow Pharmaceuticals should not use the mailing list to promote Soothing Waters Hot Tubs and Spas.

It is not ethical to use customer information across multiple divisions of the same company because

the customers needs across multiple divisions is different.

The marketing director for Soothing Waters is subscribing to the selling concept. According to this concept , customers will not buy the product unless promotional and selling endeavors are undertaken.

The AMA Statement of Ethics does not specifically address the use of the customer information by multiple divisions of the same company.

The statement says that privacy of customers should be protected. Therefore Sparrow Pharmaceuticals

should not the mailing list across multiple divisions.