Marketing Myopia

A growth of major industry is being threatened, slowed and stopped because of the failure of
management. The railroads did not stop growing because they were railroad-oriented instead of
transportation-oriented; they were product-oriented instead of customer-oriented.

Even Hollywood barely escaped being totally ravished by television. The wave of new young writers,
producers, and directors whose previous success in television had decimated the old movie companies
and toppled the big movie moguls.

Customer-oriented management can do to keep a growth industry growing, even after the obvious
opportunities have been exhausted; and here there are two examples that have been around for a long
time. They are nylon and glass-specifically, E.I. du Pont de Nemours & Company and Corning Glass
Works with great technical competence and unquestioned product orientation have succeeded
primarily because of their Customer-oriented management leaving its high potential competitors
behind.

Its not about versatility that made it possible for nylon and glass companies but its system of
clustering things in small group that resulted in the halt of companies growth. lacking is the will of the
companies to survive and to satisfy the public by inventiveness and skill.

Dry Cleanings boom is hindered by the Development of Chemical and detergent company,
connecting some far-fetched industry. The companies with so called no alternative have faced
competition from the new energy storage system which can eliminate the hazards of fading. Electric
Utilities: From the invention of the kerosene lamps to incandescent lamps to Generators, there has
been always been innovations busting the myth of saturation.

The history of every dead and dying growth industry shows a self-deceiving cycle of bountiful
expansion and undetected decay. There are four conditions which usually guarantee this cycle:

1. The belief that growth is assured by an expanding and more affluent population.

2. The belief that there is no competitive substitution for the industrys major product.

3. Too much faith in mass production and in the advantages of rapidly declining unit costs as output

rises.

4. Preoccupation with a product that lends itself to carefully controlled scientific experimentation, I
improvement, and manufacturing cost reduction.

Population Myth

Petroleum Companies are going in the same direction of railroads mentioned earlier with the idea
that population growth will eventually increase their market and turning a blind eye on the saturation.
Major improvements in gasoline quality tend not to originate in the oil industry.
What Ford Put First

The real gift of Henry Ford is that once he determined to cut back the value of his cars to Rs 500
he created the simplest selling strategy of his time, production clearly had an area within the set
up however it followed a tough pondering the client. Ford repeatedly emphasized this point, but a
nation of production oriented business manager refuses to hear the great lesson he taught.

Product Provincialism

The tantalizing profit possibilities of low unit production costs may be the most seriously self-
deceiving attitude that can afflict a company, particularly a growth company where an apparently
assured expansion of demand already tends to undermine a proper concern for the importance of
marketing and the customer. The usual result of this narrow preoccupation with so-called concrete
matters is that instead of growing, the industry declines.

Creative Destruction

It can be shown that motorists strongly dislike the bother, delay, and experience of buying gasoline.
People actually do not buy gasoline. They cannot see it, taste it, feel it, appreciate it, or really test it.
What they buy is the right to continue driving their cars. The gas station is like a tax collector to whom
people are compelled to pay periodic toll as the price of using their cars. This makes the gas station
basically unpopular institution. It can never be made popular or pleasant, only less unpopular, less
unpleasant.

In short, if management lets itself drift, it invariably drifts in the direction of thinking of itself as
producing goods and services, not customer satisfactions. While it probably will not descend to the
depths of telling its salesmen. You get rid of it; well worry about profits, it can, without knowing it, be
practicing precisely that formula for withering decay.

Marketing Shortchanged

- In the case of electronics, the greatest danger which faces the glamorous new companies in this field is
not that they do not pay enough attention to research and development, The illusion that a superior
product will sell itself.

Because electronic products are highly complex and sophisticated, managements become top-heavy
with engineers and scientists. This creates a selective bias in favor of research and production at the
expense of marketing. The organization tends to view itself as making things rather than satisfying
customer needs

In last its imperative that Marketing Myopia is described in marketing circles as short sightedness in the
domain, this was written by Theodore Levitt.