Part A. Basics Concepts and Ideas
1. Near sighted (myopic) view of marketing that focuses on products rather that customers’ needs and wants results in company’s failure to adjust to changes in the market and leads to business’ decline 2. Too narrow definition of the market prevents companies from foreseeing threats from substitution and put them at risk of obsolescence 3. Success of a company depends on human organization and leadership.
Part B. Implications for Application
1. Many companies have fallen victim to management’s myopic view of marketing. There is no such thing as growth industry; companies only capitalize on growth opportunities. Many dead industries and those that are showing signs of dying “growth” made more emphasis on selling aspect of the business which focuses on the seller rather than emphasizing marketing which focuses on a buyer. Most share signs of self-deceiving cycle of bountiful expansion and undetected decay based on the following beliefs and assumptions: a) growing population = growing industry
b) there is no competitive substitute for the industry’s major product c) economies of scale make marketing unnecessary
d) superior product will sell itself (dangers of R&D)
2. Failure to broadly define their industry restricts companies from taking advantage of growth opportunities. Inability of being proactive and staying one step ahead of competition destroys company’s own high profitable assets.
3. Building an effective customer-oriented company involves profound matters of human organization and leadership. In order for organization to achieve greatness, it needs to be driven by a vigorous leader who has the responsibility for creating an aspiration throughout the organization to provide customer creating-value satisfaction.