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Question: According to the Washington Post, big pharmaceutical companies such as Pfizer and Johnson & Johnson, are spending far more on marketing than on research and development. Although their direct to consumer spending has increased in the past few years (as evidenced by the ubiquitous ED and psychotropic drug advertising, to name a few), most of these marketing dollars are directed at physicians who do the prescribing. To put it in perspective, in 2013, Pfizer spent $11.4 billion in sales and marketing and $6.6 billion in research and development; Johnson & Johnson spent $17.5 B in sales and marketing, and only $8.2 B in R&D. In 2012, "Big Pharma" or big pharmaceutical companies, spent over $3 billion in consumer marketing and $24 billion marketing directly to healthcare professionals.
1. It is not illegal to set budget allocations this way, but is it ethical? Support your opinion based on the chapter readings and your own experience/research.
2. According to CDC, heart disease has consistently been the leading cause of death in the United States. After your readings about the marketing environment, use the traditional promotion mix to explain how you would promote a new prescription drug for heart disease. If you prefer holistic or natural prevention and remedies, how would you promote this idea more effectively?
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