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