bfbm(11-2015) marketing myopia sayar u tin zan kyaw
TRANSCRIPT
Advocate + Refer
Universe
Potential Customer
Prospect
1st Time Customer
2nd Time Customer
Repeat Customer
Most Often
Partner / Life Long
Suspect
Too many one-time only
What is Selling ?
Selling is a straight forward concept which involve
persuading a customer to buy a product.
Definition of marketing is: ‘the provision of
goods or services to meet consumers’ needs.’
What is Marketing?
Successful marketing involves having the right
product available in the right place at the right
time and making sure that the customer is
aware of the product.
Selling Vs Marketing
Selling
o Focus : Sellingo Objective : Converts product into casho Push strategy: Salesmen try to sell as much as they
can
Marketing
o Focus : The Customero Objective : Satisfy customers needs in best
possible wayso Pull strategy: Salesmen capture customers need
MarketIntegratedmarketing
Profits throughcustomer
satisfaction
Customerneeds
(b) The Marketing Concept
FactoryExisting
productsSelling andpromotion
Profits throughsales volume
Startingpoint Focus Means Ends
(a) The Selling Concept
Selling and Marketing Concepts Contrasted
Marketing Objective
oVisibility
oAvailability
oAccessibility
oConvenience
oImpulse Purchases
Definition of Marketing
Does it have to be “long run”?
o Involves:
Analyzing customer needs / want
Obtaining customer expectations
Satisfying customer preferences / Conformance / Perceived
Creating and maintaining relationships with customers and suppliers
The 4P’s of Marketing
Let’s Provide Example for each
oProduct = Solution
oPlace = Access
oPrice = Value
oPromotion = Education
THINK OUTSIDE THE BOX
THINKING DIFFERENTLY
Small changes to small things
a waste of time
Is This Essential?
Small changes to big things
necessary, but frustrating
good, but need many
Big changes to big things
the key to growth
Noâ
NecessaryÂ
VITALÂ Â
How do we do it?High Performance Leadership means ...
Individual Practice
and Mindset
Transforming the organization and
aligning the people in order to
dramatically improve the business and
Sustain long-term Momentum
RIGHT AND LEFT BRAIN EXERCISES
( BENCHMARK / THINK BIG )
LEFT
WordsNumbersLogic
RIGHT
ImagesColour
Dreams
Left Thumb Managing
Left Index Reasoning
Left Middle Body Control
Left Ring Linguistic
Left Little Observation
Right Thumb Leadership
Right Index Creating
Right Middle Kinesthetic
Right Ring Listening
Right Little Memory
Brain Mapping
Converting Needs to Wants
o Effective marketing focuses on the benefits resulting from goods
and services
Example: Need for water to satisfy thirst converted to a desire for Pepsi Cola
o Companies must pay attention to what consumers want
Example: Demand for smarter cell phones and wireless services
Avoiding Marketing Myopia
o Marketing Myopia – management’s failure to recognize the
scope of its business
Avoiding Marketing Myopia by Focusing on Benefits
COMPANY MYOPIC DESCRIPTION MARKETING-ORIENTED DESCRIPTION
Aliant “We are telephone company.” “We are a communications company.”
WestJet “We are in the airline business.” “We are in the transportation business.”
Sony “We are in the video game business.” “We are in the entertainment business.”
Avoiding Marketing Myopia Needs, Wants and Demands
Products and Services
Value, Satisfaction, and
Quality
Exchange, Transactions, and
Relationships
Markets
Symbol
Brand name
Presentation
AdvertisingPrice
High quality
Efficient production
Strong R & D
Low cost operation
High service levels
Effective sellingStrong supply chain
Key assets and competencies
What You Can’t See
What You Can See
What Do You See in the Picture?
Wagon LeaderFollowers
Square Wheels
Round WheelsRope
From Transaction-Based Marketing to
Relationship Marketingo Focus is on developing customers into repeat, loyal customers –
increasing the lifetime value of the customero Goal is to move customer up the loyalty ladder:
o Repeat customers are a source of “word-of-mouth” marketing
Advocate Loyal supporter Regular purchaser New customer
UnderstandThe marketplace
And customer needsAnd wants
Design a Customer-driven
Marketing strategy
Construct a Marketing program
That deliversSuperior Value
Build profitableRelationships andCreate customer
delight
Capture value fromCustomers to
Create profits and Customer quality
Marketing Process
“Quality is conformance to customer’s expectation” Juran , Feigenbaum
24
Quality is the ability of a product or service to meet customer needs.
Importance of QualityMarket Gains
Reputation
Volume
Price
Lower Costs
Productivity
Rework/Scrap
Warranty
Increased
Profits
Improved
Quality
The Marketing Concept: What It Is and What It Is Not
Kotler’s Social Definition:
“ Marketing is a social and management
process by which individuals and groups
obtain what they need and want through
creating and exchanging products and value
with others.”
WITHIN FIVE YEARS, IF
YOU’RE IN THE SAME
BUSINESS YOU ARE IN NOW,
YOU’RE GOING TO BE OUT OF
BUSINESS.
Marketing
MYOPIA
Fateful Purposes
Companies went into decline because they did not define their industries
properly
Examples of some successful and unsuccessful companies that were
product-oriented and not customer oriented are:
Railroad ( Goods Moving Vs Transportation)Hollywood ( Movies Vs entertainment)Petroleum ( Oil Vs Energy Business)
Myopia
A clinical condition, also called shortsightedness, when people fail to see
distant object clearly
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 Nustomers’ Needs and Wants.
Problem: Defining the market
Railroads did not think they are in transportation
Hollywood film did not concentrate on whole
entertainment industry but only movies
Too narrow definition of market prevents foreseeing threats from substitution.
Why industries Growth and Decline?
Growth:o Apparent customers needo No other solution = No substitutes Example: Dry cleaning = Need driven by woolen clothes & having no other solution
Decline:o Other solution to the need becomes availableo The need decreases due to new technology Example: Dry cleaning= Synthetic fiber replaced woolen clothes & availability
of new ultrasound technology to replace previous chemical technology
Decline: Are You Willing to EXITo When market / industry declines, company’s must strive to EXIT it
o EXIT barriers can be emotional o Corner store grocers beaten by supermarketso Companies showed courage
o Other EXIT barrierso When layoff costs are too higho When equipment's can not be reconverted/sold
Myth #1: Growing Population = Growing Industry
o HYPOTHESIS: If the number of consumers grow, sales will also grow = Growing industry
o It is true when there is no substitute for the need o Example: Oil industry
o Example of some disruption/substitution Kerosene lamps by Edison’s electric light bulbOil by natural gas for room heating, even as car fuel
o Innovations may come from outside the own industry
Myth #2: Economies of scale make marketing unnecessary
o Focus of producing more at lower cost
o Focus on selling more. Market offering is just the generic offering /service
o Neglecting the marketing aspects.
Role of marketing is to listen to the customers
The Secrete To Creativity / Intelligence / Scientific Thinking!!!!
Experiences
KnownSee
Listen
Reach
FeelingsEmotions
Understand
Knowledge
CREATIVITY
When you ask creative people how they did something, they feel a
little guilty because they didn’t really do it, they just saw
something.
Think and createtogether newproduct and
services
Clients, users and company staff
Every artist gets asked the question,
“ WHERE DO YOU GET YOUR IDEAS?”
The honest artist answers, “I steal them.”
CONNECTIONS FUEL CREATIVITY
Myth #3: Dangers of R & D
o Superior product will sell by itself
o False hypothesis: Continuous growth is a matter of product innovation
o Product innovation focus: Features of products
o Market offering focus: Satisfy customers need
o Example: Garment Industry in Thailand
To appoint : Fashion Designer / R&D Manager / Brand Manager
Example of Electronics
Organization view itself as making
things, not satisfying the
customers needs
o They focus on how to develop the product (R & D)o Neglect how to sell (Marketing)
Success factoro Customers come to tell them what they needo No need to research customers needs
Conclusions
Identify consumer needs
Physical delivery of the customer satisfaction
Creating the things that achieve the
satisfaction
Find the raw materials to make the product
o An industry is a customer satisfying
process, not a goods producing process
o Management must view business process
as tightly integrated efforts to discover,
create and satisfy customer needs
Understanding Marketing Myopia
o Also can be defined by: Marketing Myopia is narrow minded approach to
a marketing situation where only short-range goal
Can be prevented:
o Product Concept – “ Myopia “
o Marketing Concept – “ No Myopia “
Green Marketing Myopia
Green marketing must satisfy two objectives:
o 1. Improved Environmental Quality. 2. Customer Satisfaction
o Eg: Greenheart Phones – Sony Erricson / Apple / Samsung
Example: I - Kodak
o Kodak film camera: Fall prey to Marketing Myopia
o Sony Digital Camera invaded the market which was a roaring success
Example: II- Sony
o Now it was the turn of Sony (Sony Walkman)
o Apple introduced a innovative product which was a huge success
Avoid Myopia
o Solution Centric focus
o Customer Centric
o Marketing is not only about selling
o Aware of substitutes to the Industry
o Disruptive Innovation
WHAT CUSTOMERS REALLY NEED, WANT AND EXPECT
1. Help
2. Respect and Recognition
3. Comfort, Compassion and Support
4. Empathic Listening
5. Satisfaction
6. Trust
7. Friendly and Smiling Face
8. Understanding
9. Feeling of Importance
10. Quality Product or Service at a Fair Price
Why Pepsi isn’t suffering from Myopia
o Diversification into other markets
The Main Ideas
o To breed growth and avoid myopia: define theindustry
o Product orientation and the overkill of R&D
o “Sellers focus on the needs of the sellers =>marketers focus on the needs of the buyers” (Levitt)
Article Relation to Marketing Decision Making
1. Product orientation
2. Marketing approach
3. Selling approach
4. Mass production
5. Social responsibility
1. Product concept
2. Marketing concept
3. Selling concept
4. Production concept
5. Social marketing concept
Levitt Kotler
The Marketing Myopia
o The marketing myopia to the world market
WHO ARE ALL STAKE HOLDERS?
Investors, Shareholders and Lenders
Customers and Users
Unions
Regulatory Authorities
Joint Venture Partners and
Alliances
STAKE
HOLDERS
EmployeesGovernments
Local Communities and Citizens
Private Organizations
Supply Chain Associates
SOCIAL
COLLABORATION
Today We Will Cover
Social Collaboration Connected Enterprise
“ Collaboration using social technologies for the purpose of intra-organizational learning, sharing, and adapting to change.”
Adapting to a New Connected World @ Work
Past
Enterprise
Enterpriseo Organizational stovepipeso Centralized taxonomieso Locked-down processeso One-way communications
Present
Enterprise
Social Collaborationo Enterprise social networkso User-driven taggingo Working-out-loudo Two-way communications
Social
Collaboration
Customers
Partners
Suppliers
Adapting to a New Connected World @ Work
Future
Enterprise
Connected Enterpriseo Structural changeso Connected employeeso Adaptive social workflowo Transparent communications
Social
Collaboration
Prospects
Competitors
Investors
Clients
Suppliers
Partners
Workforce
Adapting to a New Connected World @ Work
CONNECT THE DOTS
INDIVIDUALS
COMPETE
o priority to the individual over the group
o no shared sense of identity
o pursuing own goals and competing against others
COLLECTIVES
COLLABORATE
o priority to the group over the individual
o members adopt a joint identity
o united them around their shared goal.
CONNECTIVES
COOPERATE
o supports and encourages both simultaneously group and individual
o no shared sense of identity
o members busy pursuing their own goals
Refinement ofIntellectual Components
Derivation ofIntellectual Components
Repetitive Learning
Interpretation of Data
Understanding Data
Collection of Data
SPEAK WITH DATA
Marketing Myopia: Four Myths
o Myth 1: An ever-expanding and more affluent population will ensure our
growth.
o When markets are expanding, we often assume we don’t have to think
imaginatively about our businesses, but instead seek to outdo rivals simply
by improving what we are already doing.
o Example : Drinking Water / Mobile Phone – Accessories / Etc.,
Marketing Myopia: Four Myths
o Myth 2: there is no competitive substitute for our industry’s major
product.
o Believing that our products have no rivals makes our companies
vulnerable to dramatic innovations –often by smaller newer companies
that focus on customer needs rather than the products themselves
o Example: Bank / Airlines / Fuel Station / Rice / Eatable Oil
Marketing Myopia: Four Myths
o Myth 3: We can protect ourselves through mass production.
o While the declining unit costs that come with increased production are
alluring, focusing on mass production emphasizes our company’s needs
when we should be emphasizing our customers’.
o Example : Home Business ( Traditional Food Home Business., )
Marketing Myopia: Four Myths
o Myth 4: Technical R&D will ensure our growth
o When R&D produces breakthrough products, it is critical to remain
focused on customer needs…ideally, new products are both
breakthrough and meet customer needs
o Example : Garment / Soft Drink – Tamarind / Local Sprit – flavour / Open
Retail Business )
Examples: Success
o 1) PEPSI
o Pepsi-cola is a good example where Marketing Myopia is absent.
Other Example:
3) Samsung
4) Apple
5) LG
Examples: Failure
1) Kodak
o Kodak film company is a great example in which marketing
myopia was present.
o Kodak did not view Sony , basically an electronics company, as a
potential competitor.
3) Sonyo “What Apple did to Sony, Sony did to Kodak.”
“ THERE IS ALWAYS AT THE TOP “
Thank You