What Is Marketing?

Introduction

IN THE PRACTICE OF MANAGEMENT, PETER F. DRUCKER wrote, “There is only one valid definition of business purpose: to create a customer . . . [Therefore], any business enterprise has two—and only these two—basic functions: marketing and innovation. They are the entrepreneurial functions. Marketing is the distinguishing, the unique function of the business.”¹ This book explores what marketing is and how an enterprise can differentiate itself from others in attracting and retaining customers.

In general terms, marketing refers to what an organization must do to create and exchange value with customers. In this sense, marketing has a major role to play in setting a firm’s strategic direction. Successful marketing requires both a deep knowledge ...