Marketing Myopia Report
Report based on Marketing Myopia article published by Harvard Business Review and written by Theodore Levitt. In this report is going to be given answer to 3 questions based on the researches that been concluded. Mainly report is going to be reviewing key failing of business in 1960 which Levitt pointed out himself. And comparison to nowadays marketing structure and business environment followed by an example of industry that is or might be acting myopically. Word myopia itself has two meanings one is medical other is business related: Medical Myopia – “Myopia is the medical term for near-sightedness. People with myopia see objects more clearly when they are close to the eye, while distant objects appear blurred or fuzzy. Reading and close-up work may be clear, but distance vision is blurry” (Anon, 2011) Marketing Myopia – “A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants. It results in the failure to see and adjust to the rapid changes in their markets.” (BusinessDictionary, 2011)
What are the key fallings in marketing as a business practice perceived by Levitt in 1960? Defining the industry wrong by not completely understanding what are the chances are and how it may grow or develop. People who say that we can’t compare say cars and jewellery are making an analytic error. Objectives are not being stated clear enough or been very uncertain. Not recognising their market by not seeing the opportunities and potential customers. Ignoring possibilities of expanding or merging their business with other companies. Managers have lack of imagination as for example not using all the potential of railroads as growing business. Lack of will to survive and prosper by satisfying the public by new ideas and inventiveness. Belief that there is no competition. Being the most major key of failing during 1960. All “growth industry” assumed that there will be no competition, but failed to predict new developments and innovations. Everything is being replaced eventually by more superior product which leads to complete downfall of industry. Unable to predict the future. Believe that something is going to be forever was common in 1960. Electronics where improving and picking up the pace of development bringing basics everyday things to a new level. Leaving most of industries far behind in past. Focus is wrong. Companies focus on production more. Not taking in consideration changes in industries. Narrow thinking towards companies objectives. Companies are not focusing on what the consumer wants but on what they want to sell Mass-production focuses on production resulting marketing gets neglected. Belief that grows of industry is guaranteed by affecting more population. Thinking that mass-production will bring more money. Advantage of rapidly declined unit (Levitt, 1960). Not seeing actual prosperity for products and losing lots of due to overproduction. Not knowing customers actual preferences and satisfactory items. Not-costumer oriented. Companies are being product-orientated. Customer being neglected. Losing costumers’ doe lack of attention to a potential consumer. Making products but not having customer to buy it. Companies are not paying enough attention to research and development (R&D). Not making surveys in the society. Many companies lost millions due lack of deep analysis and research. Neglecting any possible development of business and its product. How has thinking moved on since then?
Companies are be too customer orientated. Being too focused on satisfying the consumer and neglecting inner companies’ issues. Not making companies objectives clear and not focusing on development. Most companies stopped to recognise customer as a citizen (for a political theory perspective on this point, see Jocz and Quelch 2008). Social status changed very dramatically in...
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