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A Conceptual Study on Broadening the Concept of Marketing: Environmental Orientation
M. Asif Salam, Assumption University, Thailand
The purpose of this paper is to propose a logical connection between business and the environment. In this customer centric era, firms should focus on building and managing customer equity and not just brand equity. Customer equity is the sum of lifetime values (LTVs) of customers, where each customerís LTV is the sum of the properly discounted stream of net profits form the customer over the lifetime of the customer-firm relationship. When each customerís LTV can be computed, interesting possibilities open up. The firm can identify its best prospects and target the most profitable ones differently from the less profitable ones. Marketing, service, and other strategies aimed at customer acquisition or retention can be reevaluated on the basis of which strategy yields the richest pool of customers with high potential LTVs. The findings suggest that, there is an association between firmsí environmental performance and financial performance.