Marketing 13th Edition by Gary Armstrong, Philip Kotler

Exercise 5

The pharmaceutical industry is innovating at a dizzying pace, but it is getting more difficult for pharmaceutical sales reps to reach doctors to inform them of new or improved products. One option is to host educational seminars. However, many educational seminars are held at lavish restaurants or destinations underwritten by pharmaceutical companies, and doctors providing the education are paid consulting and speaking fees to the tune of more than $2 billion since 2009. In some cases, speakers are given scripts developed by the pharmaceutical company, leading to the criticism that this is company-scripted marketing and the distinguished speaker is merely a "paid parrot" selling drugs for the company. Critics also claim that such promotion results in needlessly increased prescriptions for expensive branded drugs that are no better than generic alternatives. Many drug makers are reducing expenditures for such product promotions because of the Physician Payment Sunshine Act, a provision of the Affordable Care Act of 2010. Pro Publica has a "Dollars for Docs" searchable database, and as part of the Sunshine Act, a searchable government Web site is available to the public to shed light on pharmaceutical sales practices.
Learn about the Physician Payment Sunshine Act. Search Pro Publica's "Dollars for Does" database (http://projects.propublica.org/docdollars/) for local physicians to see if they have received payments from pharmaceutical companies. Search the government's Web site (https:// openpaymentsdata.cms.gov/) and compare your findings with those of Pro Publica's database. Write a report on what you found. (AACSB: Communication; Use of IT; Reflective Thinking)