The Unchanging Foundations Of Marketing
Through good times and bad, two tensions define the whole of marketing. One about brand value. One about consumer decision-making.
NEW THINKING
Through good times and bad, two tensions define the whole of marketing. One about brand value. One about consumer decision-making.
Business is about numbers. Marketing is about people. That’s a built-in conflict, and people tend to lose out. Management guru Peter Drucker argued that the essential functions of a business were marketing and innovation. By Drucker’s reckoning, people should always come first. But it never works out like that.
Marketing mostly fails. Most new products fail. Most innovations fail. Most ads underperform. Most algorithms yield marginal improvement. It’s like baseball. Hall of Fame pitcher Goose Gossage said once that “baseball is a game of failure. A .300 hitter, a superstar, fails seven out of ten times.”
How does marketing contribute to your organization? All business functions are highly varied and require multiple talents. Marketing, however, may be among the most diverse of business disciplines in terms of the range of skills, knowledge, and responsibilities that define it.
Despite what you may read in the popular press and even in some academic treatises, customers are not morons who are easily fooled. Anyone who has had serious experience in sales or has sat across a negotiation table knows just how smart customers are. However, even the most experienced marketing manager and salesperson may not understand the decision making of customers. With experience as buyers, customers develop very rational and habitual decision rules. Understanding these...