When you see a commercial for a new car, a new movie, or a
new brand of breakfast cereal it's because the manufacturers of
those products want to incur as much advertising expense as
possible so they can pass the cost along to you. Then you can't
afford to buy their product. Isn't that what they teach in Business
101 as the best way to make big profits? Of course not.

In order to recover the cost of developing and manufacturing a
new product, it must be able to find its "market"-those customers
who think the product provides a value greater to them than it's
price. Manufacturers need to find the optimal number of
customers for a new product through advertising. This allows
them to sell the product at a lower unit price.

Critics of the pharmaceutical industry demonstrate willful
ignorance of the basic principles of economics and marketing.
They say firms that develop breakthrough drugs after investing
billions of dollars in research are not to be commended but
persecuted-because they won't keep quiet about them. Those
who attack drug advertising are just looking for an excuse to
impose government regulation and price controls. They pretend
ignorance of marketing because they want to destroy individual
choice and free markets, and replace them with government
micro-management of all aspects of health care. They are also
conveniently ignorant of other principles, such as "freedom of
speech."

Effective advertising of new drugs provides obvious benefits.
Most importantly, it informs those with medical conditions about
new treatments (including those who may have given up on
getting relief). It may motivate them to discuss the condition with
a physician for the first time, creating an opportunity for the
physician to undertake testing and make a correct diagnosis. The
physician may prescribe another medication better suited to the
patient's needs. Or, the physician's knowledge of the condition's
serious consequences may alter the treatment course instead of
just addressing the symptoms reported by the patient.

Critics maintain that it would be better if none of this came about,
rather than allow a patient to ask for a drug by name. A patient
who rejects the treatment recommend by his doctor to hold out
for something he's seen on TV is foolish. A good doctor will
prescribe something more appropriate if that is called for.
Keeping patients barefoot and ignorant is not the solution.
Despite the tireless efforts of pharmaceutical salesmen,
physicians in general practice or internal medicine can't possibly
keep up with all the features of the many new drugs and how
they might apply to every patient. Why shouldn't those who feel
the pain be on the lookout for new remedies?

Those who want to eliminate drug advertising, or tax it, or use it
as an excuse to impose controls want to eliminate, tax, and
control the flow of information to consumers-information far
more important than a new light beer.

You'd think that the last group that would want to eliminate
advertising is politicians. Yet Senators Ron Wyden and John E.
Sununu have proposed bi-partisan legislation to cut the price that
the government pays for some of the drugs it gives away. Not all
drugs, just the drugs that advertise to consumers. Price controls
are destructive enough, but cutting the price just for the people
who get them for free is ridiculous. These senators obviously
don't know or care about the impact this legislation will have on
paying customers in the marketplace.

When you see a commercial for a new drug it offers the potential
to make somebody feel better. Let's leave those commercials
and the drug companies alone. What would really make us all
feel better is less advertising urging us to elect politicians who
want to control our lives.

Richard E. Ralston is Executive Director of Americans for Free
Choice in Medicine (www.afcm.org). Please send comments to
This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

By Richard E. Ralston
web posted June 20, 2005

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