There’s a quote by Czech author Milan Kundera that I’m fond of.  He states, “Business has only two functions – marketing and innovation.”  While this assertion is easier said than done, it’s certainly a powerful idea that can help us understand what it is that generates customers for a business.  To delve a little deeper, let’s look at some examples of companies that truly take this idea to heart.

To start with, innovation is what moves businesses forward.  If you don’t innovate, you’ll get left in the dust.  Google has made a living off coming up with the newest, coolest technology that consistently meets its customers’ needs.  Apple, too, is infamous for coming out with innovative, high-tech products so sleek and user-friendly that some people go fanatic over them.  On the other hand, Blockbuster is a business which is failing because of its inability to innovate.  Once the leading video rental store in the country, Blockbuster failed to adapt to new technology, and as a result, has seriously struggled to compete with newer companies such as Netflix and Redbox.  Now Blockbuster is close to bankruptcy.

The other function of business—marketing—can do wonders in attracting more customers, especially in industries where it’s difficult to innovate.  Take The Coca-Cola Company, for example, which has kept its same signature drink for nearly all of its 118-year history, but has continued to grow its business through creative and effective marketing.  True, they’ve done some innovating as well with their new product lines, but it’s their genius marketing strategy over the years that has established them as arguably the #1 brand in the world.

To see this truth in action today, just look at Proctor & Gamble (P&G) and its latest Old Spice advertisements.  There’s not much Old Spice could do in terms of innovating their deodorant and body wash lines, but through a funny and creative viral marketing campaign, they still significantly boosted their product sales.

So next time you’re pondering over how you can grow your business, you better start thinking of ways you can innovate or a new marketing campaign because those are the only ways you can differentiate your product or service.  You can either make your product better, faster, or cooler through innovation, or convince your customers it’s better, faster, or cooler through marketing.  Or do both.