MARKET MYOPIA-

 MARKET MYOPIA-

 

INTRODUCTION: -

“Market Myopia” was introduced by the Theodor Levitt in the marketing paper. It was published in the HBR (Harvard Business Review) in 1960, where he stated that businesses can do better than just selling their service or products. His main argument was that companies are too focused on producing goods or services and don’t spend enough time understanding what customers want or need. Therefore, he inspired executives to switch from a production orientation to a consumer orientation.

Marketing myopia is the failure & narrow-minded approach of marketing management of a company; which only focuses on certain attributes of the product or service while completely ignoring the long terms goals such as product quality, customers need, demand and satisfaction.

 

CAUSES OF MARKETING MYOPIA

Companies assume that they are in a growth Industry:

It doesn’t happen overnight, instead, it takes time to build a reputation and establish the brand. But when a company achieves that status of being successful, then they become a leading growth industry in the market for a long time.

However, this notion of being invincible in the market makes them to falsely assume certain things like whatever they produce, it will sell. Because they are either lead producer or the only manufacturer in the market, instead of building a relationship with customers they just focus on their sale strategies.

 

Failure to Consider the Requirements of the Consumer:

One of the important causes is the failure to consider the requirement of customers as a part of their marketing strategy. They become so overconfident that they stop asking their customers, whether they want our product or not. As a result, the gap between the customer’s requirements and company product becomes so big; whenever a competitor enters the market. People just leave the marketing myopic brand immediately.

 

Companies believe there are no Competitive Substitutes:

When a company remains a sole producer in the market without any competitor, then they believe that things would stay the same forever and they will always be at the top. This self-deceiving belief makes them lazy, and they stop investing their resources in research and development to keep on getting better. In the end, a competitor comes in the market with unique features and takes the entire market share.

Focusing more on Products and not on Customers:

The focus of market myopic companies is only on their product, not the needs and requirements of customers. They just keep on producing their products overlooking the demands of the market. Customers only buy their product is because they don’t have another choice.

‘’Failure to Consider Changing Consumer Lifestyle in the Digital Age’’

Technology doesn’t only provide us new products; it also changes our lifestyle along with those products and services by making us more leisure. When marketers don’t keep in mind the changing lifestyle of customers; their product becomes obsolete to meet the requirements of customers. Customers won’t buy any product which doesn’t meet their demands.

Examples of Marketing Myopia Include the following:

1.   Kodak Cameras-

They which were the best but with the passage of time they were failed in realizing the customer needs.

Customers wanted new technology in cameras which were successfully recognized by Sony and then Sony became successful.

 

2.   Nokia-

Back in early 2000 to 2006; Nokia’s button pad phones were at the top of the market and Nokia had the entire market share. Nokia didn’t change its product with the changing technology. In 2016, exactly 10 years later, Nokia’s phones were nowhere to be found in the market. Samsung and iPhones captured the whole market share which was once belonged to Nokia.

3.   Entertainment-

Video games, TV series, movies, showbiz, etc, nowadays, all of them fall into the category of entertainment. It is because all of them are targeting the same audience, instead of differentiating themselves from one another, they have decided to agree on one thing and which is to entertain their audience and work in collaboration.

 

To overcome these near-sighted of the companies suffering from marketing myopia.

They should follow these steps:

 

Have a clear Vision:

Leaders must make decisions with a clear vision in mind for the organization. At times, a company may have to sacrifice short-term gains in order to attain something great in the long run. Long-term gains is the name of the game and when a firm takes measures to define its business, then it can easily adapt to the requirements of the market.

 

Example-

Mark Zuckerberg is he CEO of Facebook, the world’s largest social networking site. He wants everyone on every corner of the globe to be interconnected by establishing connections as well as sharing stories and memories.

 

Be Customer Oriented Not Product Oriented:

Focus on the needs of the consumer and you will naturally cast a wider net to appeal to a larger audience. Focus on the requirements of the product and you will quickly realize that your expectations of a great product may not meet the ever-changing demands of the market.

 

Example-

 when you see advertisements or commercials for Nivea body lotion, you will see that they use words like “Great for oily skin”, “Made for dry skin”, or “This lotion makes your skin silky, smooth, and hydrated.” This is a good example of a company taking the marked-oriented approach by addressing the problems of people’s skin and giving them some solutions to counter it and make it better.

 

Conduct Comprehensive Marketing Research:

In order to truly understand the things that people want, you need to ask them directly. Conducting surveys and sending customer feedback emails go a long way in acquiring a deeper insight into the mind of consumers. In this digital age, it has become common to ask questions via social media platforms like Twitter and Facebook.

 

Be aware of the competition and use your Resources:

If you want to be a big player in your industry, then you need to make great efforts in knowing what your competitors are up to. Investigate your competitor’s successful marketing strategies and determine whom their products it was aimed at and why it worked so well.

 

Diversify your Business to safeguard your future:

Diversification is a great business idea that you should definitely consider if you want to avoid marketing myopia. When you evolve from your cocoon, you can spread your wings and realize that your business has so much more offer. Do not be so one-dimensional and linear; try to be three-dimensional by offering various products and services to consumers.

 

Example-

Nike

Nike eventually started to face stiff competition from Adidas, a major European shoe manufacturer. Nike could have either continued to design only shoes or diversify their business. They chose the latter and they have reaped the benefits since then.

Nike started to manufacture sports apparel (like jerseys, shorts, and t-shirts), as well as sports equipment to appeal to a broader audience with a much wider range of products and accessories. Adidas followed suit but it was a bit late as they have always played second fiddle to Nike. Nike has been the market leader in sports apparel and gear for several years now, holding a sizeable market lead over its competitors.

This example shows that when you diversify your products and understand what industry you are in, then you will not be shortsighted by your competitors and fall victim. Nike realized that they were much more than a shoe manufacturer; Nike realized they were a sports gear manufacturer. Diversification leads to market expansion, thereby preventing marketing myopia. Nike learned to evolve and they are still evolving to this day. The adapted to meet customers’ needs.