This is from an older article at Forbes.com titled “Peter Drucker On Marketing” by Jack Trout. While it’s dated back in July 2006, good writings stand the test of time, and this one is no exception. Mr. Trout wrote that perhaps today’s executives are just getting it wrong in their priorities.
Peter Drucker observed:
“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
Top management surveyed today probably name their priorities to include the likes of finance, sales, production, management, legal and people. Missing from the list, as Mr. Trout pointed out: marketing and innovation. He listed 4 important steps to help an executive find the proper direction. These are:
- Make sense in the context. What does the market place perceive you and your competitors to represent? Do you know what the market wants? If you do, how do you differentiate yourself from the competitors?
- Find the differentiating idea. Be different, be one of a kind, be not the same. And it does not have to be a differentness in just products. There are other areas of the business that can be used as your secret weapon.
- Have the credentials. However you are different or claim you are different from the pack, you must prove it with credentials, demonstration, and logical argument. Customers are smart and knowledgeable. If you let them ask skeptical questions about your claim, then you have a faulty start and an uphill battle on your hand.
- Communicate your difference. In the Internet, social media and social networking market environment, you can’t be too sure that customers will beat a path to your door. You have to work for it. Tell them what makes you different.
Marketing is definitely not everything. But it’s one very important thing. Management who understand that marketing is a high priority must-do item on their to do list will be way ahead of their competitors, in any market condition. They will enjoy rosier roads ahead of them. And much sooner too. Because marketing should be a way of doing business, and not a new company initiative.
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Tags: Forbes, innovation, Jack Trout, management survey, Marketing, Peter Drucker, priorities, results
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