Week 1

Through this class will be reading William Cohen's book, Drucker on Marketing. Drucker has some very good and interesting views about business and marketing. One of the first ideas that caught my attention is that marketing and innovation are the two basic functions of a business. "Because the purpose of a 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." 

There are processes that a businesses needs to follow to become successful. First, the business needs to create a value (innovation) that will fulfill a customers need. Second, the business needs to inform customers (marketing) about the product. Third, the product needs to be sold to customers. Last, the business needs to make a profit and understand how to use that money (finance/management). The business then needs to repeat the process, either improving the first product/service or creating an additional product. 


Profit and profitability are absolute requirements for any business. Without making a profit a business can not survive. Businesses should not strive to maximize profits. While it looks good in the books, cutting costs are not always the best strategies. Profit maximization could be hazardous to the business. With that said, making a profit is important but not the sole purpose of a business. The purpose of the business is to create customers. Drucker states, "Customers are the foundation of a business and keeps it in existence."  

Creating the customer is the first challenge. Keeping the customer is another challenge. To keep the customers coming back a business need to have constant innovation. Constant innovation and successful products will create a strong brand. Creating brand loyalty is key to retaining customers. Apple has had great success creating brand loyalty for its customers. Many people have their own brand loyalties toward various products. I have brand loyalties toward Jeep, Rawlings (baseball equipment) and Burton (snowboard equipment). Each of these companies create a good products and constantly improves on their products. I have not has any issues with their products which is why I am loyal to these companies.

Marketing is a key function to business. As class continues we will continue to talk about marketing concepts and the current business environment.