An airline founder who refused to have a marketing department

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What's the real difference between selling and marketing? Most people assume they're the same activity wearing two names. Kotler and Armstrong argue they sit at opposite ends of a spectrum of philosophies that guide how a company designs its whole strategy.

At one end is the selling concept: the belief that customers won't buy enough of a product unless a company pushes hard with promotion and persuasion. It's an inside-out way of thinking. A company starts with what it already makes, then works backward to talk someone into buying it. Kotler and Armstrong note this approach is common for unsought goods, things people don't wake up wanting, like life insurance, so the industries built around them get very good at finding prospects and closing sales. But it carries a real risk: the aim becomes selling what the company happens to make rather than making what the market actually wants.

At the other end sits the marketing concept, an outside-in philosophy that starts with a well-defined market and its needs, and only then designs a product to satisfy them. Herb Kelleher, the founder of Southwest Airlines, captured the idea when he said his company didn't have a marketing department, it had a customer department. Under this concept, the job isn't to find the right customers for your product. It's to find the right products for your customers.

Between these two extremes, Kotler and Armstrong describe other orientations companies sometimes fall into. The production concept assumes customers care mainly about availability and low price, which works for companies competing purely on efficiency but can blind a company to what else customers value. The product concept assumes customers will favour whoever offers the most features and quality, which can lead a company to keep improving something the market has already moved past. And the societal marketing concept pushes further still, asking whether satisfying today's wants is always good for a customer's long-run welfare, or for society at all.

None of these orientations is inherently wrong for every company. A firm competing on rock-bottom prices in a commodity market may reasonably lean on the production concept. But Kotler and Armstrong are clear about which orientation tends to build relationships that last: the one that starts by listening, not the one that starts by talking.

Look at the last major product or promotion decision you made and ask honestly whether it started with what you wanted to make or with what a customer actually needed. Then run what you might call the customer department test: rename your marketing department, even just in your own head, the customer department, and see whether your current priorities still hold up under that name. Check for blind spots by asking whether satisfying a customer's immediate want might cost them, or the people around them, something later on, and adjust the offer if it does. Do this regularly rather than once, because it's easy to slide back into starting with the product the moment things get busy.

What You'll Achieve

The listener starts recognizing which underlying philosophy shapes their decisions and consciously chooses a customer-first orientation where it fits, while staying alert to when production or product thinking is genuinely appropriate.

How to test which orientation is really running your business

1

Identify which orientation actually drives your decisions.

Look at your last major product or promotion decision and ask honestly whether it started with what you wanted to make or with what a customer needed.

2

Run the customer department test.

Rename your marketing department, even mentally, the customer department, and see whether your current priorities still make sense under that name.

3

Check for societal blind spots.

Ask whether satisfying your customer's immediate want could cost them, or society, something in the long run, and adjust the offer if it does.

Reflection Questions

  • Whose needs are you actually starting from when you make a product decision, yours or the customer's?
  • If your department were renamed today, what would it need to be called for that name to be honest?
  • Where might satisfying a customer's immediate want work against their longer-term interest?

Personalization Tips

  • A gym owner who keeps adding shiny new equipment might get more value from asking members what's actually stopping them from showing up.
  • A nonprofit pushing hard for donations at every event could shift toward understanding what supporters want to feel part of, and design events around that instead.
Principles of Marketing
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Principles of Marketing

Philip Kotler, Gary Armstrong • 1980
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