Six lessons on how Drucker's view on Marketing can multiply your Value Creation
Peter Drucker, the father of business management, considered Marketing one of the two fundamental business functions. However, his definition of Marketing went way beyond advertising, sales, or promotion. Understand six lessons on how Drucker's view can help you create lasting value:
1. Marketing is about understanding and satisfying the customer
For Drucker, Marketing is about understanding the needs and wants of the customer and then delivering products or services that satisfy those needs. A business cannot survive without customers, so the central focus on attracting and retaining customers is vital.
2. Marketing is a holistic philosophy, not a siloed function
Drucker's view underscores that the entire business should be seen from the client's point of view, so everything must cohere with creating and delivering value to the customer. Marketing isn't a separate function but a business-wide organizational philosophy.
3. Marketing sees Value Creation as a complete experience
At its core, the purpose of a business is to create and deliver value to the client. This is not limited to the product's inherent value but includes the entire customer experience, from first contact through post-purchase support.
4. Marketing and Strategy are basically the same thing
Roger Martin highlights, "Marketing and Strategy Started in Separate Places but have Converged Into One Discipline." While Strategy used to concern competition and Marketing cared about customers, nowadays both must "fully incorporate customers, competitors and company into their decisions."
5. Marketing can be a crucial source of competitive advantage
Paul Leinwand and Mahadeva Matt Mani, in their book "Beyond Digital," recommend a business imperative to "Build a System of Privileged Insights with Your Customers." Every business can build its unique Marketing Flywheel by focusing on understanding its customers in a way that no one else can.
6. Like diamonds, Marketing is forever
Beyond individual sales, Marketing as a holistic client-centric discipline focuses on building and maintaining long-term customer relationships. It’s about trust, loyalty, and understanding that the lifetime value of a satisfied customer far exceeds the value of a single transaction.
Adopting Drucker's holistic, client-centric view benefits the client and creates a ripple effect of value across every stakeholder associated with the business. When the end customer is truly prioritized, everyone in the ecosystem stands to gain.