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The Purpose of a Business

MANY PEOPLE think that the purpose of a business is simply to make a profit. The real purpose, however, as Peter Drucker explained, is to “create and keep a customer.” All the efforts of a successful business are aimed at creating customers in some way. Profits are the result of creating and keeping customers in a cost-effective way over time.

The cost of creating customers initially is very high. The cost of keeping them is far lower than the cost of creating them in the first place. If you study the companies that are the most efficient at marketing, you will find that their strategies are all aimed at creating customers and then holding on to them.

Quality as a Marketing Strategy

Perhaps the most profitable marketing ...

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