MARKETING MYOPIA- short notes
MBA / BBA MARKETING MANAGEMENT
QUESTION PAPER 2018 october
PUNE UNIVERSITY
Marketing Myopia=Refer to
the short sightedness
“The problems that exist
in the world today cannot be solved by the level of thinking that created them”
- Albert Einstein
Marketing Myopia
by Levitt Theodore (1975)
The Myopia is even
leads to a wrong or inadequate understanding of the very nature of business in
which given organization is engaged and thereby affect the future of
business.
He further explained
that while business keep changing with the time, there is some fundamental
characteristics in each business that maintain itself through the changing of
time which relates to human needs.
Those products which
could not change were sooner replaced by other innovation which satisfies the
customer expectations and need.
So in Sort we can say
that – Myopia is sort sighted and inward looking approach to marketing that
focus on the need of firm instead of defining the firm and its product in term
of need & wants.
Railroads serves as an
example of an industry whose failure occurred due to a limited market
view.
Those behind the rail
roads are in trouble not because the need of passenger transportation has
decline or even because that need is filled by cars, airplanes or other mode of
transportation, rather the industry is failing because of those behind it
assumed that they were in the railroad business rather than the transportation
business.
They were rail road
oriented instead of transportation oriented, product oriented instead of
customer oriented.
Fundamental idea
The Myopic cultures,
Levitt postulated, would pave the way for a business to fall, due to the
short-sighted mindset and illusion that a firm is in a so-called 'growth industry'.
This belief leads to complacency and a loss of sight of what customers want. It
is said that these people focus more on the original product and refuse to
adapt directly to the needs and wants of the consumer.
To continue growing,
companies must ascertain and act on their customers’ needs and desires, not
bank on the presumptive longevity of their products. In every case the reason
growth is threatened, slowed or stopped is not because the market is saturated.
It is because there has been a failure of management.
EXAMPLE –
Earlier tape recorder
of Sony was most popular but sooner they replaced by iPod.
Everyone know about
Kotak cameras which uses real technology has been replaced by Sony digital
camera and then other companies follow the trend to survival.
One reason that
shortsightedness is so common is that people feel they cannot accurately
predict the future.
While this is a
legitimate concern, it is also possible to use a whole range of business
prediction techniques currently available to estimate future circumstances as
best as possible.
Green Marketing Myopia Green marketing must satisfy two objectives:
improved environmental
quality and customer satisfaction ?
EG: Greenheart Phones-
Sony Erricson ?
Example: 1- Kodak Kodak film camera: Fall prey to
Marketing Myopia ? Sony Digital Camera invaded the market which was a roaring
success ?
Example: II- Sony Now it was the turn of Sony (Sony
Walkman) ? Apple introduced a innovative product which was a huge success ?
Example: III- Frankfinn Frankfinn- India’s No 1 Air Hostess
Training Institute ? Hit hard by slow growth in Indian Airlines industry ? Now
trying to portray as India’s best Hospitality trainer ?
Example: IV- MSN Messenger
Causes Company thinks, its
growth is guaranteed by expanding population
? Believe there is no
competitive substitutes
? Mass Production- Not
concentrating on the needs of the customer
? Focusing on product
rather than the customer (Lacking innovation)
? Not considering the changing consumer
lifestyle in digital age ?
THERE ARE 4 CONDITIONS OF
THE SELF-DECEIVING CYCLE:
The belief that growth
is assured by an expanding and more affluent population.
The belief that there
is no competitive substitute for the industry’s major product.
Too much faith in mass
production and in the advantages of rapidly declining unit costs as output
rises.
Preoccupation with a
product that lends itself to carefully controlled scientific experimentation,
improvement, and manufacturing cost reduction.
New marketing myopia
The “new marketing
myopia” occurs when marketers fail to see the broader societal context of
business decision making, sometimes with disastrous results for their
organization and society. It stems from three related phenomena:
(1) a single-minded
focus on the customer to the exclusion of other stakeholders,
(2) an overly
narrow definition of the customer and his or her needs, and
(3) a failure to
recognize the changed societal context of business that necessitates addressing
multiple stakeholders. Customers in the “new marketing myopia” remain a central
consideration, as in the traditional “marketing myopia”. However, academics
that develop the “new marketing myopia” phenomenon state that it is essential
to recognize that other stakeholders also require marketing attention. For
business-to-consumer companies, these other stakeholders (e.g., employees) are
sometimes customers too, but they need not be (e.g., nontarget market members
of the firm's local community)
• PROFESSOR AT HARVARD
BUSINESS SCHOOL AND EDITOR OF THE “HARVARD BUSINESS REVIEW”
• DEAN OF MARKETING,
KNOWN FOR HIS CONTRIBUTION IN MARKETING. THE JOURNEY MAY HAVE STARTED WITH
“MARKETING MYOPIA” IN HARVARD BUSINESS REVIEW IN 1960 WHEN HE WAS A LECTURER AT
HARVARD
• POPULARIZED THE TERM
OF GLOBALIZATION WITH HIS ARTICLE “GLOBALIZATION OF MARKETS” IN 1968
• AWARDS INCLUDE
MCKINSEY AWARDS FOR BEST ANNUAL ARTICLE AND CHARLES COOLIDGE PARLIN AWARD AS
MARKETING MAN OF THE YEAR IN 1970.
• ONE OF THE MOST
IMPORTANT FIGURES IN MARKETING AND ECONOMICS
ESSENCE OF THE ARTICLE
Written in 1960,
the article revolutionized the thought processes of business managers who were
narrowly focused on the products they sold
—they were
short-sighted or myopic, as Levitt calls it.
It is important to
define an industry by asking a simple question
—“what business are we
in? ?
To ensure growth,
companies must define their business properly based on customer needs and
desires.
Businesses are
actually customer satisfying institutions/entities.
Myopia my·o·pi·a
lack of imagination, foresight, or intellectual insight
Solution Centric focus ?
Customer Centric ?
Marketing is not only about selling ?
Aware of substitutes to the Industry ?
Disruptive Innovation ?
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