MARKETING MYOPIA

Group A9

UNDERSTANDING MARKETING MYOPIA

• Term coined by Theodore Levitt

• Refer to the short sightedness

• The marketer want to sell the product and services, without much focusing on the customer demands/needs.

Falling to the trap of Myopia?

• Too narrow definition of the market e.g.

Railroads (trains) vs. Transportation Hollywood; films industry vs. whole entertainment market

• Undermining long run attractiveness of Target Marketing - Porter’s five forces

e.g. Declining of dry cleaning industry in USA

• Synthetic Fiber replaced Wool - need decreased• Ultrasound tech replaced chemicals - new technologies

Marketing Myths

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

2. Belief that there is no substitute for industries major product

3. Too much faith in mass production and economies of scale to sustain

4. Preoccupation with the product improvements, experimentation, cost reduction

How to avoid marketing Myopia?

• Solution Centric focus

• Customer Centric

• Marketing is not only about selling

• Aware about substitutes to the Industry

• Disruptive Innovation

Solution Centric focus

• Sunlight introducing soap powders to the market

Effectively addressing an issue faced by consumer and providing a solution

• Sensodyne introducing toothpaste for people that have sensitivity issues

Excellent Market research Target marketing Product differentiation

Customer Centric

• Henry Ford : Determine the price for the demand; Cut cost to profitable at this price

4 P Model

Market segmentation and Target Marketing

Marketing is not only about selling

• Corner stores vs. Super Markets

Use MIS cleverly

Creating the ambience

Influencing consumer psychology

Aware about substitutes to the Industry

Coke Product diversification into the bottled water market (coke, Bonaqua)

Coke is not cola market but into quench thirst market. (Sticking the company mission)

Kodak Kodak did not view Sony , an electronic company, as a potential competitor

Consumer need is to capture moments, does not matter whether it is in a reel or digital camera

Disruptive Innovation

• Success of Apple iPod and failure of Sony Walkman

Understanding ever changing consumer needs

Defining the target market broadly – Music lovers who wanted their music whenever and whatever

Conclusion

• Need to find the balance for making a product a success for today and for future

• It is not selling but providing values profitably

• “Organisations must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it” Theodore Levitt