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Good corporate marketing or unethical corporation

1. Given the two scenarios below, discuss if they are examples of good corporate marketing, or unethical corporations taking advantage of the consumer. Fully explain your answer please:

A. Pharmaceutical companies spend millions of dollars researching new drugs to cure disease. Once these drugs are released, the company charges an extremely high price in one country and a much cheaper price in other countries.

B. Cigarette manufacturers have taken a beating in U.S. courts the last ten years. Besides paying billions of dollars to cancer victims, they now have to air television commercials and run ads in major magazines that state smoking is dangerous and people shouldn't smoke. These same companies are now heavily promoting their cigarettes in third world countries. If it isn't good in the U.S, why is okay elsewhere.

2. Give another example of corporate America possibly crossing that ethical marketing line. Explain your reasoning.

Solution Preview

A. Pharmaceutical companies spend millions of dollars researching new drugs to cure disease. Once these drugs are released, the company charges an extremely high price in one country and a much cheaper price in other countries.

Pharmaceutical companies serve a great humanitarian cause by constantly developing and manufacturing life saving drugs for the betterment of consumers and patients all over the world. Even though significant differences in terms of demand, supply, degree of competition exists between different countries and pharmaceutical markets all over the world, pharma companies working for such a noble cause are unethical in charging such premium prices in some countries in order to exploit market conditions in such countries and earn abnormal profit margins. Even though a reasonable profit is warranted for such companies to induce and motivate them to stay in business, such extremely high profit margins for essential products like life saving drugs is an unethical policy that should not ...

Solution Summary

1. Given the two scenarios below, discuss if they are examples of good corporate marketing, or unethical corporations taking advantage of the consumer.

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