Introduction
Sparrow Pharmaceuticals has acquired its client base by advertising credible and thematic articles and offering a high-quality selection of medical research findings. The given measure has granted the trust of its customers as it was useful for them together with the excellent performance of the company’s products. There is a topical ethical question of advertisement scheme application to promote Soothing Water Hot Tubs and Spas, which literally became a sister company. This commercial might be considered relevant for the customers because the company also offers services in body care and well-being. On the other hand, it could be not very pleasant for clients and result in a decline in the performance quality of Sparrow Pharmaceuticals.
The Decision to be Taken by Sparrow Pharmaceuticals
To make it efficient for both parties, Sparrow Pharmaceuticals should announce the supporting program for Soothing Water Hot Tubs and Spas. This action informs the customers about the changes in the periodic newsletter. The clients will feel prepared for the changes in the news and accept it more readily than if the company’s marketing specialists present the ad like a sudden bomb in the mail. Alternatively, they might desire to unsubscribe from being mailed since they perceive the incoming information about the sister company as spam.
The Question of Ethics in Using Customer Information Across Multiple Companies
It is ethically unacceptable to use customer information across multiple divisions of the same company as it violates the privacy rules. People usually sort out the information they want to see in their newsletter boxes, so as not to waste time on unwanted adverts. And if the client gives his contacts to receive a newsletter from the company, it should be considered a high level of trust (Laczniak & Murphy, 2019). In other words, marketing professionals have to value the clients’ attention and treat them carefully, avoiding too much spam in the periodicals.
Soothing Water Marketing Philosophy
I think the marketing director of Soothing Water subscribes to the selling concept. It is the philosophy that states that the product or service cannot be effectively sold unless there is a comprehensive promotion of it (Deepak & Jeyakumar, 2019). By trying to use Sparrow Pharmaceuticals’ mailing list, market managers attempt to offer their services to people who might be potentially interested in them. Here Soothing Water assumes that people who use drugs for arthritis and high blood pressure might think about using preventative measures.
AMA Statement of Ethics in Relation to This Situation
The American Marketing Association Statement of Ethics does not directly address the question of the use of customer information by multiple divisions of the same company. However, there are some principles applicable to this situation. First, as it was noted above, it is better for Sparrow Pharmaceuticals to notify their clients about the possible direct promotion of Soothing Waters, as this action credits honesty, fairness, respect, and transparency (American Marketing Association). The measure can help to retain the trust of the clients and show respect to them because a caring and considerate attitude towards the customers can be delightful. Moreover, the company significantly raises its reputation by rejecting manipulations and sales tactics that harm customer trust and instead directly asking for their consent for further advertisement. Second, offering the services of Soothing Waters can be attributed to responsibility, because in other words, the company thinks about what is better for its clients (American Marketing Association). Sparrow Pharmaceutical indirectly stands for Soothing Waters, so the customers’ trust in the former spreads to the latter too.
Conclusion
To conclude, Sparrow Pharmaceuticals should firstly inform its customers about the novel changes in the company. Direct advertisements can help Soothing Water to build its clientele; hence it is desired action for the company. As using client databases across multiple company divisions is unethical action to do, the company should express honesty, respect, and transparency. In such a way, the interests of both sister companies will be satisfied, and potentially there will be no harm to their reputations.
References
American Marketing Association. (n.d.) Codes of conduct: AMA statement of ethics.
Deepak, K. A. R., & Jeyakumar, S. (2019). Marketing management. Orangebooks Publication.
Laczniak, G. R., & Murphy P. E. (2019). The role of normative marketing ethics. Journal of Business Research, 95, 401-407.