Business Quote by Peter Drucker
“Because its purpose is to create a customer, the business has two and only two functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are costs.”
About This Quote
Source Book: The Practice of Management, Peter Drucker, 1954
A business’s sole purpose is to create customers; its only essential functions are marketing and innovation, while all other activities are cost centers.
In simple terms: Marketing and innovation create customers; everything else costs.
Key Takeaway
Focus on marketing and innovation to grow.
Themes
business
marketing
innovation
customer focus
efficiency
Mood
analytical
pragmatic
Type
business
strategic
When to use this quote
- product development
- brand building
- market research
- process improvement
- budgeting
Key Concepts
Strategic management
value creation
cost accounting
Questions to Reflect On
- How can support functions add value?
- What defines a “customer” in modern markets?
A Different Perspective
Neglects the role of operations and support functions.
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