Monday, August 08, 2011

The positioning of marketing

This is a very import functional distinction for marketing that often is overlooked. We deal with the customer promise in how we –in the Market Driven Growth process—define the Business Design:
Specifically, the marketing function should lead the company in defining who the target customers are and what outcomes we hope to create for them (Needs Segmentation)  and the specific Value Promise for each of these customer groups dealing with the functional, economic, and emotive components of the offering promise. Not covered in this article, is also the function of defining Value Capture, how we capture value

Peter Drucker famously commented that:
"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."

Why did one of the founders of modern business management make such a bold statement? Why did he attribute such an important role to marketing, and how does that relate to all the other things that a business organization does?

We believe the answer lies in the definition of marketing as two essential components:
1.    Making a compelling promise to select customers--the role of marketing is to make compelling promises that we can keep and to ensure that we keep the promises we have made
2.    Keeping that promise--The second, and often overlooked, role of marketing is in helping the organization keep the chosen promise to target customers

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