Thursday, February 10, 2011

Marketing = Creating customer value

I'm niggled by Peter Drucker's assertion that everything apart from marketing and innovation is simply a cost; that only marketing and innovation produce value in business operations.

So I've been thinking some more and today am niggled by Philip Kotler's assertion that "Marketing is the art of creating genuine customer value." True!

It's the exact opposite of the typical attitude of "Here's my product; now, who'll buy it?"

Instead, it's about understanding what the customers in the market need; what is their pain and their problem? Then driving innovation to come up with a solution that the business can deliver at a profit.

It's not just about finding people to buy the 'ice cream' you make; it's about first understanding that the market wants to buy 'ice cream.' Then figuring out how to make it and distribute it cost-effectively; and with sufficient differentiation to hold the value of your 'ice cream' compared to the thousands of alternatives, not just of 'ice cream' but of other things that 'ice cream' money could be spent on.