Regular readers will know I am a fan of Peter Drucker. As the master of modern business consultancy, he has the advantage that previously there had been few, if any, quotable business quotes so he could simply say what he thought without having to put his words in the perspective of those who went before. He didn’t have to come up with a new angle on something. He just said it as he saw it – and I reckon he was one bright guy.
Consequently, Peter Drucker is immensely quotable on core aspects of business and marketing. He gets right to the nub of things and gives real food for thought.
Take this one:
"The purpose of a business is to create a customer."
He goes on…
"Marketing is the whole business seen from the customer's point of view.
Taking these 2 together, I actually think it is wrong to ask the question: Where does marketing fit in your business?
The reality is that marketing IS your business!
Is it that simple?
Hang on a minute!, I hear you cry, my business is to provide this service or that product, and part of my business is to market and sell my service/product.
From your position, inside your business, it may certainly feel like this. You know how busy you are with all the tasks you do to keep your business thriving.
However, just take a minute and think about the first of Drucker’s quotes: The purpose of a business is to create a customer. This makes sense. Without customers, your business is nothing but cost – in both time and money. It is the margin generated through profitable customer revenue that is the fuel to drive everything in your business. Whether you are a sole trader working alone, or a big corporation, this same basic rule applies. If you don’t have sufficient revenue from your customers, you run out of money and your business fails.
So, if we accept that a customer (or customers!) is the most fundamental requirement and purpose of your business, it makes sense that how your (potential) customers view your business is critical to your success. The process of getting your business messages out and therefore managing how your customers view your business is….Marketing!
So when it comes down to it, marketing is not a function of your business. Marketing doesn’t fit into your business. It is your whole business – as seen from the customer’s point of view. Ultimately, it is the customer’s point of view that is essential!
Some food for thought….