The Marketing Concept

The key to achieving its organizational goals co

nsists of the company being more effective th
an competitors in creating, delivering, and co
mmunicating superior customer value to its ch
osen target markets.
Slogans:, We do it all for you (Toyota).
Four pillars: target market, customer needs, in
tegrated marketing and profitability.

Corporate Social Responsibility (CSR)

Preliminary definitions of CSR

The impact of a companys actions on society
Requires a manager to consider his acts in terms o
f a whole social system, and holds him responsible
for the effects of his acts anywhere in that system

Corporate Social Responsibility (CSR)

Corporate Citizenship Concepts

Corporate social responsibility emphasizes oblig
ation and accountability to society
Corporate social responsiveness emphasizes acti
on, activity
Corporate social performance emphasizes outco
mes, results

Corporate Social Responsibility (CSR)

Historical Perspective
Economic model the invisible hand of the marke
tplace protected societal interest
Legal model laws protected societal interests

Corporate Social Responsibility (CSR)

Historical Perspective
Modified the economic model
Philanthropy
Community obligations
Paternalism

Corporate Social Responsibility (CSR)

Evolving Viewpoints
CSR considers the impact of the companys actions
on society (Bauer)
CSR requires decision makers to take actions that
protect and improve the welfare of society as a wh
ole along with their own interests (Davis and Blom
strom)

Corporate Social Responsibility (CSR)

Evolving Viewpoints
CSR mandates that the corporation has not only econ
omic and legal obligations, but also certain responsib
ilities to society that extend beyond these obligations
(McGuire)

Corporate Social Responsibility (CSR)

Carrolls Four Part Definition

CSR encompasses the economic, legal, ethical and
discretionary (philanthropic) expectations that soc
iety has of organizations at a given point in time

Corporate Social Responsibility (CSR)

CSR in Equation Form Is the Sum of
:
Economic Responsibilities (Make a profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good corporate cit
izen)
CSR

The Societal Marketing Concept

The organizations task is to determine the ne
eds, wants, and interests of target markets an
d to deliver the desired satisfactions more effe
ctively and efficiently than competitors in a wa
y that preserves or enhances the consumers
and societys well-being.
Examples: Body Shop; HSBC;

Customer Relationship Management

(CRM)
The overall process of building and maintaining pr
ofitable customer relationships by delivering supe
rior customer value and satisfaction.
On average, it costs 5 to 10 times as much to attra
ct a new customer as it does to keep a current cus
tomer satisfied. (Sears 12 times)

Customer Perceived Value

The difference between total customer value and t
otal customer cost.
Value chain, e.g. Wal-Mart.
Value-delivery network, e.g. Honda.

Customer Lifetime Value and Equity

Customer lifetime value: the value of the entire str

eam of purchases that the customer would make
over a lifetime of patronage.
Lexus: $600,000; Taco Bell: $12,000; Supermarket: $5
0,000.

Customer equity: the total combined customer life

time values of all of the companys customers.
Cadillac vs. BMW

Selective Relationship Management

Weed out losing customers and target winning on

es for pampering.
Examples: Citibank; First Chicago Bank; Fidelity Inv
estment.
Risk: future profits are hard to predict.