Marketing Myopia

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Sequence
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What is marketing myopia. Causes for marketing myopia.
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Shadow of obsolescence Population myth Production pressure Dangers of R & D

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Examples for marketing myopia. Strategies for overcome marketing myopia.

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Marketing myopia
THEODORE LEVITT (1925-2006)

American Economist

Won Several Awards

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What is marketing myopia?

Adopting a short-sighted approach to marketing. Constricted Vision. Defines Industry Horizons.

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What is marketing myopia?

Marketing myopia is described as a firms shortsightedness or narrowness when it is attempting to define its business. Firm define it self as a product producer.

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Causes for Marketing Myopia

Shadow of obsolescence Population Myth Production Pressures Dangers of R & D

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Causes for Marketing  Shadow of obsolescence Myopia
Almost all major industry one time qualify for the appellation of growth industry. So, they were focusing on more sales (sales oriented). But, with available of substitutes those industries were in trouble. One by one these celebrated industries has come under a shadow of obsolescence. Eg: Dry cleaning, Electric utilities, Grocery stores etc,,
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Causes for Marketing  Population Myth Myopia

Belief that profits are assured by an expanding & more affluent population.
Believed that benefits through expanding population. Having a generic products, no competitive substitutes. Focused on We increase the efficiency of making our products, rather than boosting the value those products deliver to customers. Occurred marketing myopia.
Eg: Petroleum Industry

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Causes for Marketing Production Pressures Myopia companies impelled to produce all they Mass production
can. All efforts focused on production. Mass production move the products. Emphasized on selling not marketing. Focused on the needs of the seller not satisfying the needs of customers. Eg: Ford

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Lessons to Learn from Henry Ford

First of all we know him through a wrong concept,

Production Genius

Is he ?

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In-fact he is a Marketing Genius

Mass production was a result, not the cause, of his low prices He invented the assembly line because he had concluded that at $ 500 he could sell millions of cars His policy was to reduce the price, extend the operations and improve the article (First priority to reduce the price – customer oriented thinking ) The new price will forces the costs down ( Usual way is to calculate the cost first and then determined the price ) Low price makes everybody dig for profits

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Lag in Detroit This is a good example where mass producing automobile state got surprised when they monitor the market share to other small car manufacturers. They spent millions on consumer research and yet failed to reveal the above.

What went wrong ?  Detroit never realy researched customer wants  They only researched their preferences between the kind of things it had already decided to offer them  They were maninly product oriend, not customer oriented
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Causes for Marketing  Dangers of R & D Myopia

Profit possibilities through technical research & developments. Believe that a superior product will sell itself. Firms continues to be oriented toward the product rather than consumers. It develops the philosophy that continued growth is a matter of continues product innovations & developments. Eg: Electronic products
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Examples for Marketing Myopia? The Rail Roads

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Fastest, cheapest & reliable mode of transport in those days. Now in trouble, not because that need filled by others (cars, trucks, buses & airplanes) Not filled by railroads themselves. Believed that growth is assured by an expanding & more affluent population. Narrowly defined as railroad business rather than

transportation business.

Product oriented rather than customer oriented.

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Examples for Marketing Myopia?  Petroleum Industry
Pioneered the oil recourse exploration. Possessed advance technology & know-how. Enjoyed confidence of sophisticated investors Limited itself to the technology of oil exploration, oil production & oil refining. Didn’t think of alternatives (natural gas)

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Examples for Marketing Myopia?  Petroleum Industry conti….
Focused on a generic product, but failed to realize its supportive products. Improved the techniques of production & not the product. “Complacency & wrong headedness can

stubbornly convert opportunity in to near disaster”

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Strategies for minimize  Take a generic view of the industry (define the firm & marketing myopia
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industry broadly) Monitor other industries & be aware their marketing strategies. Recruit marketing people & have brainstorming sessions between those new & existing managers to yield new strategies. Be flexible enough to apply unique solutions to the problems. “Business will do better if they concentrate on satisfying customers needs rather than on selling products”

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Conclusion

To ensure continued growth for your company, Concentrate on meeting customer’s needs rather than selling products.

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Thank You

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