Thursday, April 04, 2013

Thoughts from Drucker

Last night at Robin Robins Boot Camp, the keynote was Mark Sanborn, author of the Fred Factor. Great speaker. Both Robin and Mark were quoting Peter Drucker, who I have not heard quoted in a long time.

Peter Drucker stated,, "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."

This blog explains a Jack Trout article about Drucker, "He also criticizes those so-called CMOs who spend their time focusing on everything but their most important task: differentiation. Writes Trout, "While CMOs are worrying about customers or segmentation or ROI or search-engine optimization, their brands are sinking into a sea of commoditization. Drucker told them what to do, and they ignored him."

Drucker also said, "The aim of marketing is to make selling superfluous." he continues, "The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself."

Mark Sanborn said, "Marketing doesn't create a Customer. Marketing creates Demand. Sales doesn't create a Customer. Sales creates a Transaction. Service creates a Customer."

"Management is doing things right; leadership is doing the right things." ― Peter F. Drucker, Essential Drucker: Management, the Individual and Society

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