customer marketing

The Purpose of Business and The Purpose of Marketing

Peter Drucker wrote: “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.” He also wrote, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself… The aim of marketing is to make selling superfluous.” The purpose of business and the purpose of marketing is therefore a focused complete understanding of the customer, producing something different for them to solve their problem, that has a measurable impact (i.e. innovation). Thanks to Nick Hixson for clarity on the definition of innovation – see his excellent video.

Effective Marketing is NOT

  • Advertising
  • PR
  • Promotion

Effective Marketing IS

In fact, it is not stuff produced to sell things. In fairness, it can be some of these things. But effective marketing requires:

  • A strategy – what do you want to achieve, where do you want to go from where are you starting
  • Establish a crystal clear brief
  • An absolute understanding of your customer, prospect or what is often called these days the persona
  • A problem to be solved
  • A Marketing Plan

So, in summary, “…the aim of marketing is to make selling superfluous.” The purpose of business and the purpose of marketing is therefore a focused complete understanding of the customer, producing something different for them to solve their problem, that has a measurable impact (i.e. innovation).

Peter Eales BA Hons Chartered Marketer FCIM FIDM
Founder Director Dorset Business Angels
MD o i solutions limited

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