Marketing: Week 1

When companies align themselves for marketing efforts, they typically have production, materials, and office aspects in place.  But it is not all smoke, mirrors, and a wave of a magic wand.  Often, just because your product is better, bigger, or faster, does not mean that it will sell. 

A business has got to have two functions in order to achieve profit maximization.  “According to Drucker, profit supplies the business with energy by supporting its two basic functions: marketing and innovation.” (Cohen, 2012)  The comparison of profits to oxygen is a great way to gain an overall understanding.  Cohen also points out, “If the focus is solely on profit maximization, the customer can be ignored or given secondary consideration.” (Cohen, 2012)  It is the perfect combination of innovation and marketing that leads to profit.  

Part of the overall purpose of marketing is to invite the potential customer to the product.  But, if the company lacks the innovation to retain the customer, then all may be lost, including the profit.

If profit maximization is the only goal of the company, it could lead to long term danger.  The danger could arrive in the form of incorrect, hazardous, or misleading products.  It could mean injury or death to a consumer or an employee.  It could lead to a company closure, loss of customers, and loss of innovation.  Is it really worth the risk?

The ultimate test of a company is the gaining of a customer.  “…Drucker wrote, “The customer is the foundation of a business and keeps it in existence. He alone gives employment. To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise.” (Cohen, 2012)  Customers are what dictates the who, what, why, where, when, and how of any product.  The trick for the marketing department is to figure out what goes to who and why and decipher the where, when and how…and to do it successfully time after time.

Cohen states, “If you still think that marketing and selling are pretty much the same, you are wrong because you have only part of the answer. Drucker knew that not only are selling and marketing not the same, but that good selling could actually be adversarial to good marketing.” (Cohen, 2012)  If a product is sold to a customer who has no use for the product, is of shoddy workmanship, or the right product does not land in the right customer’s lap, then the company may wish to consider the effects of a zero profit margin.  As well, if a product is pushed into the marketplace that has a minimal profit margin, how effective to the bottom line profit can that be?

Cohen, William (2012-09-26). Drucker on Marketing: Lessons from the World's Most Influential Business Thinker . McGraw-Hill. Kindle Edition.