Peter Drucker , one of the greatest thinkers on business and management , made some of the most profound remarks about the place of the customer in a business . He said that “ the purpose of the business is to create and keep a customer ”. For this to happen , you need to have a deep understanding of the customer . This is the only way you will be able to design products or services that are such a perfect fit for the customer that “ they will sell themselves ”. He saw marketing as a broad activity “ that encompasses the entire business ”. He described marketing as “ the whole business , seen from the point of view of its final result , that is , from the customer ’ s point of view ”. From this perspective , Peter Drucker , further asserted that : “ because its purpose is to create a customer , the business enterprise has two - and only these two basic functions : Marketing and Innovation . Marketing and Innovation produce results ; all the rest are costs ”.

To put it simply it becomes business only when it gets a customer to serve . The customer is essentially , the only person who pays money into a business , and we call it revenue . She does this by buying the products and services that the business offers . Indeed , if a business does not get any customers upon inception , it dies a natural death . It becomes part of the statistics of the many business startups that fail within the first year of birth . And what would we say is the cause of death ? Perhaps , in this context , even without a post mortem , we could say that the business died of malnutrition or lack of air .

Until a start-up gets a customer , there is no business to talk about , only the intention to create one . There are many people who walk around with business cards , but don ’ t even have a bank account . They are waiting to get a paying customer before they open an account . Basically ,

You need to have a good insight on who actually makes the buying decision . There are many players in the consumer decision process , especially for non-routine purchases . You need to know who are the influencers , the information keepers , the decision makers , the buyers , and the users of your product . All these could be represented by one person , but at times are represented by different people . we can say that they are prospecting for customers , and when they succeed , they will be in business . Alternatively , they could be doing market testing to confirm that their idea is capable of winning the customer ’ s money .

Given the central role of a customer in business , and the recognition that all business functions depend on the revenue that the customer brings in , then it ’ s the prerogative of those who manage businesses , to strive for a deep and insightful understanding of the customer . This will support the development of an effective marketing strategy to help with attracting and keeping customers . The importance of understanding customers is captured well in this statement by William Bernback : “ Nothing is so powerful , as an insight , into human nature , what compulsions , drive a man ; what instincts dominate his action . If you know these things , about a man , you can touch him at the core of his being .”

This need to understand the customer is the real basis behind the growth of the marketing research industry . Understanding customers is a key driver of competitiveness . The information on customers , serves to feed the marketing strategy . A marketing strategy is the overall business roadmap on how to reach target customers and convert them to paying customers , who will keep buying the company ’ s products and services . It will define the unique value proposition or the main promise the business makes to the customers . As Peter Drucker said : “ True marketing starts with the customer , his demographics , his realities , his needs , his values . It does not ask , ‘ what do

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Augment Understanding Of Customers For Effective Marketing Strategy