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Marketing Myopia

Team Hard Core

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Sequence What is marketing myopia. Causes for marketing myopia.

Shadow of obsolescence Population myth Production pressure Dangers of R & D

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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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.

What is marketing myopia?

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Shadow of obsolescence

Population Myth

Production Pressures

Dangers of R & D

Causes for Marketing Myopia

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Shadow of obsolescenceAlmost 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,,

Causes for Marketing Myopia

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Population Myth

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

Causes for Marketing Myopia

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Production Pressures

Mass production companies impelled to produce all they 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

Causes for Marketing Myopia

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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 DetroitThis 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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Dangers of R & DProfit 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

Causes for Marketing Myopia

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Examples for Marketing Myopia? The Rail Roads

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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Petroleum Industry

Pioneered the oil recourse exploration.Possessed advance technology & know-how.Enjoyed confidence of sophisticated investorsLimited itself to the technology of oil exploration, oil production & oil refining.Didn’t think of alternatives (natural gas)

Examples for Marketing Myopia?

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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”

Examples for Marketing Myopia?

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Take a generic view of the industry (define the firm & 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”

Strategies for minimize marketing myopia

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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