Chapter 3

Review and Applications
2.4 – Do you think that a code of ethics will actually influence an employee’s behavior? Why or why not?
I think it depends on the company and the code of ethics. If the company and top management support the code of ethics and follow it too it could be successful in a company. If the management is stressing frequently the importance of the code employees are more likely to follow the code of ethics. Also, if the code of ethics is helpful, not too vague or too detailed, the employees will be more likely to use it. I think employees would use it to minimize confusion about a decision that needs to be made and what the company would think about the decision. I know I have been in that situation where you just want to look at a guideline or checklist that has been used in the past to make similar decisions.

5.1 – Baby boomers in America are aging. Describe how this might affect the marketing mix for the following:
a. Bally’s Health Club – I think this category will be divided pretty equally with people wanting to go to they gym if they’re not already, or people leaving the gym or not wanting to go at all. There will either be the people who want to do something about their health to avoid future medical costs so they will join a gym, or you will have the total opposite. These people will not want to work out or will just physically not be able to work out at a gym. The company would have to specifically promote to an older population and the products that would help out the older population.
b. McDonalds – The product will probably not change with the aging of the baby boomers. Price would have to be kept as low as possible because the baby boomers will be on a fixed budget. Promotion will work equally well as it does now. Since there a number of restaurants around the world the place would be just as convenient as it is now.
c. Whirlpool Corporation – They will have to make new products to make life easier or current products would have to become more efficient. Prices would have to stay as low as possible with the baby boomer’s fixed budget. Place would be equally effective as it is now and they could change the promotion to the easier to use appliances.
d. The state of Florida – I think the state of Florida will see more people permanently moving down there, moving down there during seasonal times, or just more people visiting. With half of the baby boomer liking travel and staying busy they will likely spend some time in Florida. The tourism industry should try to keep the price of travel to Florida as low as possible.
e. Target Stores – The pharmacies and grocery sections will likely be busier with the aging baby boomers. They would have to keep the same high quality of goods at their affordable prices. Place is convenient because of the many Target locations and they could maybe promote to an older population.

9.3 – What topics are currently receiving attention in FDA news? What affect has the attention had on market share?
- There is a current shortage of the drug Oxycodone. This shortage is due to two different pharmaceutical companies, KV Pharmaceutical and Actavis, calling large scale recalls on the product. This is going to cause the market share of these two companies to tremendously drop. The other three companies listed in the article; Mallinckrodt, Xanodyne Pharmaceuticals and Vintage Pharmaceuticals will most likely gain market share.
- A bill has been introduced to allow pharmacists and wholesalers to import prescription drugs from Australia, New Zealand, Japan, Switzerland, and other EU countries. This would increase market share to the companies in these other countries and would decrease the market share in the companies customers are currently buying their prescription drugs through.
- Testing of contact lenses and cleaning solutions could become more stringent when the FDA revises its guidance for the products. A panel of experts met with the FDA last month to discuss the stricter standards to evaluate the antimicrobial activity of some of the products. This would affect market share if they do not follow the new guidelines.