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MARKETING and managers put making profit as the customers who buy produce what eves number one reason for being in busi- business needs-profits. ness. While the response may be 100 But it all starts with the right focus, percent predictable, it is also way off not on profits but investing in creating base. customers. In fact, it may be a good idea to stay 3. Constantly pushing sales. It away from those who are obsessed with sounds almost subversive to suggest profit. They tend to behave irrationally, that getting more sales can be a treach- often undermining strategies that make Brous business objective. To take it a for higher sales, customer satisfaction step further, pushing for sales generally and increased margins. Their distorted leads to price-cutting and tarnishing the thinking leads them to believe that brand. It can certainly produce short- cutting is the formula for growth. term gain-along with the long-term What makes more sense is establish- erosion of market credibility. ing conditions that produce profits, Panasonic has long been a niche such as creating and cultivating custom- player in the personal computer busi- ers so that they conclude that doing ness. Instead of trying to buy market business with you is in their best inter- share with lower prices, the company est. Those who are convinced that they has taken a far more strategic approach. have made the right buying decision The company is expanding its line of become enthusiastic and loyal custom- rugged Toughbook laptops that meet the ers-who buy because they believe and demanding needs of users operating in don't switch because of price. And adverse conditions. Panasonic owns il this particular market with pricey laptops that set the standard for dura- bility. When Louis V. Gertsner, Jr. took over ' the CEO job at IBM in the early 1990s, the company was languishing. Quickly, Gertsner assessed the situation and concluded that the task was building aid Meehande* IBM from the customer back-not the other way around. 114 From 1 Ib.to The IBM focus moved from selling +` 30,000 Ibs.� products to making customers, a strat- from proto- egy that has taken the company to the 0types to pinnacle. mein rims, 4. Going for simple solutions. Is we have full there a company anywhere that hasn't �St h left a trail littered with an array of imm _ . ' quick, simple solutions? 104,4 For decades, ad agencies have lived off of pot-of-gold-at-the-end-of-the- rainbow projects. It's often a, "great ad e1 campaign," "a fabulous Web site,, or a INDUS'1RwS,INC. "knock 'em dead" brochure. The behav- ior mimics that of kids who drive theta Cedar Grove,w153oi3 Fax(920)668-8998 parents crazy until they get the latest and greatest toy. The "but everybody has one"pleas result in countless trips to the toy store. Circle 32 on Rapid Response Card 42 Business & Industry MAGAZINE April, 2002