Ethics and Medical Representatives- part 3

There are some ethical situations salespeople/medical representatives may confront in their relationships with their customers, competitors, and colleagues (other sales persons)

RELATIONSHIP WITH CUSTOMERS/DOCTORS

 Areas of ethical concern involving customers include using deception; offering Gifts, bribes, and entertainment; divulging confidential information; and backdoor Selling.

 Deception

 Deliberately presenting inaccurate information, or lying, to a customer is illegal. However, misleading customers by telling half-truths or withholding important information is a matter of ethics. Frequently salespeople believe it is the customer’s responsibility to uncover potential product problems. These salespeople answer questions but don’t offer information that might make a sale more difficult. Withholding the adverse effects of the drug is an example for this case. Salespeople who fail to provide customers with complete information about drugs lose an opportunity to develop trust. By revealing both positive and negative information, salespeople can build credibility. .

Bribes, gifts and entertainment

Bribes and kickbacks may be illegal. Bribes are payments made to doctors to influence their prescribing decisions, where as kickbacks are payments made to them based on the amount of orders placed. Bribes typically have negative consequences for the sales person’s firm because the product’s performance is not considered in buying decisions. The gifts which are useful for the doctor in his practice allowed to an extent. Customers who can be bribed are likely to switch their business when presented with better offers. Entertainment with huge expenditure is also not allowed.

Special treatment

 Some doctors may try to take advantage of their status to get special treatment from salespeople. Providing this extra service may upset other customers who do not get the special attention. In addition, the special service can reduce the salesperson’s productivity. Salespeople should be diplomatic but careful about undertaking requests to provide unusual treatments.

 Confidential information

During sales calls salespeople often encounter confidential company information such as new drugs under development, costs, and production schedules. Long-term relationships can develop only when customers trust salespeople to maintain confidentiality. By disclosing confidential information, a salesperson will get a reputation for being untrustworthy. Even the customer who solicited the confidential information will not trust the salesperson, who will then be denied access to information needed to make an effective sales presentation.

Sometime, acts like backdoor selling may also arise in pharmaceutical selling.