Peter Ferdinand Drucker, the self-described social ecologist and management consultant has had a big impact on American and world-wide business management and business consulting. The insights he provided were profound.
One of these insights relates to success and money earning.
Why is it, still today – that some businesses seem to generate revenue and profits with ease, and others are not?
This hidden gem explains it all:
“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.” – Peter Drucker
Todays top manager were surveyed – and their priorities in order were:
- legal and
Missing from the list: marketing and innovation.
And, to make matters worse – what is it that gets cut from budgets when firms are down-sizing, or the economy is slumping? The marketing budget.
Planning a reasonable marketing plan (online and off), and testing the results of outcome is the exercise you must undertake. Those results will help you innovate and build better products and services.
Then, tune the programs for what works, and discard (or bookmark) others for later, if at all.
The online / Internet space allows for rapid testing, and it’s fun to do. Something as simple as testing landing pages can provide real insight to what’s working and not – quickly. Marketing is not about communication, but conversion. In search engine optimization (SEO), lots of focus is still placed on rankings. Is that what you do?
Should marketing be done by marketing people?
Findings have shown that marketing people tend to outsource completely, or pass responsibilities off to others along the way, create role models in others, and lose touch with their original, core objectives and strategic vision. They focus entirely on numbers alone (the “what”), and don’t go “out there” to find out what’s really going on. (the “why”). Understanding your marketplace prior to launching is key. But, just as important, keep track of how it’s changing. Take an online marketing course and learn by doing.
What relationships do companies like Dell, Apple, Starbucks, Bowflex form? (think about it)
I haven’t read it yet – but the “Repositioning” book by Jack Trout is next on my list.
What marketing plans have you established, and how can you optimize your internal and external processes to be smarter about reaching those objectives, and quicker?
- How Many Ways Can You Make Money with Internet Marketing? (encourageblogging.com)
- The importance of marketing and innovation (customerthink.com)
- The Purpose of a Business (ducttapemarketing.com)