Marketing myopia

From CEOpedia | Management online

Marketing myopia applies to many different industries such as rail, automotive, oil, film, and food industries. The focus in this kind of industry was focused on manufacturing products in the belief that consumers will purchase products without marketing stimulation. The real market for these products is the customer buying the good, not the good in itself[1]. According to Schrage M. "Marketing myopia prevented the industry from seeing what business it was really in. To succeed, Levitt maintained, "The entire corporation must be viewed as a customer-creating and customer-satisfying organism. Management must think of itself not as producing products but as providing customer-creating value satisfactions. In short, the organization 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"[2].

Marketing myopia is caused by several situations[3]:

  • Bypassing other stakeholders and focusing only on the consumer
  • One-dimensional determination of customer needs
  • Low awareness of the social business context, which obliges to adapt to a wider group of shareholders

Preventive measures against marketing myopia[4]:

Marketing myopia in history

After World War II, technological progress gained a rapid pace, resulting in many innovative products. Thanks to mass production, producers could produce their products in record quantities. The increase in consumer spending was dictated by the increase in disposable income. The products immediately disappeared from store shelves, so the producers were convinced that they did not need to support themselves with marketing. They decided that they did not have to waste money on consumer market research. Product-centric marketing worked well for some time until manufacturers noticed a slowdown in growth despite a growing market. The idea of focusing on the consumer and his needs rather than on the product was abstract for producers. Eventually, managers of all industries were forced to reevaluate their marketing methods[5].

Theodore Levitt - the marketing scholar

Marketing concepts were full of failures, especially those created by Levitt. It was this scientist who created the concept of myopia marketing. According to Kurtz D. L. "According to Levitt, marketing myopia is management's failure to recognize the scope of its business. Product-oriented rather than customer-oriented management endangers future growth"[6].

Examples of Marketing myopia

  • Rail: The rail industry failed to recognize the rise of the automobile and air travel, focusing on producing rail cars rather than looking at transportation needs of the consumer.
  • Automotive: The automotive industry failed to recognize the rise of ride-sharing services, such as Uber, focusing on the production of cars rather than the transportation needs of the consumer.
  • Oil: The oil industry failed to recognize the rise of renewable energy sources, such as solar and wind, focusing on the production of oil rather than the environmental needs of the consumer.
  • Film: The film industry failed to recognize the rise of digital streaming services, such as Netflix, focusing on the production of films rather than the entertainment needs of the consumer.
  • Food: The food industry failed to recognize the rise of organic and healthy eating trends, focusing on the production of processed food rather than the health needs of the consumer.

Advantages of Marketing myopia

Marketing myopia has many advantages that can help organizations strategize and develop their marketing strategies. These advantages include:

  • Increased Focus: By concentrating on the desired outcomes and goals of a product, marketing myopia can help organizations stay focused on their end goals. This focus allows them to better target their marketing efforts and create more effective campaigns.
  • Cost-Efficiency: By focusing on the desired outcomes, organizations can better allocate their resources and create more cost-efficient approaches to achieve their goals. This can help them save money and increase their ROI.
  • Improved Brand Awareness: By creating well-thought-out strategies and campaigns, organizations can increase their brand awareness and visibility. This can help them increase their customer base and keep their current customers engaged.
  • Increased Customer Loyalty: By focusing on the desired outcomes, organizations can create campaigns that focus on customer satisfaction and loyalty. This can help them retain customers and increase their customer base.

Limitations of Marketing myopia

Marketing myopia has several limitations, including:

  • It ignores the power of innovation and fails to recognize the potential of long-term success that comes from creating new products and services.
  • It focuses on short-term gains and fails to consider the long-term implications of decisions, leading to a lack of strategic planning.
  • It relies on a narrow definition of the customer base and market, which can lead to missed opportunities and unforeseen risks.
  • It does not take into account the importance of customer relationships, which can be a strong driver of profitability.
  • It fails to recognize the impact of external factors such as technological advances, economic shifts, and changing consumer tastes.
  • It can lead to a lack of understanding of the competitive landscape, limiting the ability to anticipate and respond to industry changes.

Other approaches related to Marketing myopia

  • Customer orientation: This approach suggests that businesses should focus on understanding and satisfying the needs of their customers. By understanding customer needs and preferences, businesses can better tailor their products and services to meet customer demands.
  • Product innovation: This approach suggests that businesses should focus on developing new and improved products, services, and features that will keep customers coming back. By innovating and staying ahead of the competition, businesses can create a competitive advantage and increase their market share.
  • Market segmentation: This approach suggests that businesses should focus on understanding their target markets and segmenting them into smaller, more specific groups. By segmenting customers based on their needs and preferences, businesses can customize their offerings to better meet the needs of these distinct customer segments.
  • Brand positioning: This approach suggests that businesses should focus on building and communicating a distinct brand identity. By creating a strong, recognizable brand image, businesses can differentiate themselves from competitors and create an emotional connection with their customers.

In conclusion, marketing myopia is an important concept for businesses to understand and consider when developing their marketing strategies. Other approaches such as customer orientation, product innovation, market segmentation, and brand positioning can also help businesses create more effective marketing plans and increase their success.


Marketing myopia — recommended articles
Competitive environment — Macro marketing — Strategic driver — Creative strategy — Market opportunity — Goals of marketing — Negative demand — Customer driven — Importance of market segmentation

References

Footnotes

  1. ↑ Diderich M., Mamali E. (2017)
  2. ↑ Schrage M. (2012)
  3. ↑ Smith N. C., Drumwright M. E., Gentile M. C.(2010)
  4. ↑ Smith N. C., Drumwright M. E., Gentile M. C. (2010)
  5. ↑ Diderich M., Mamali E. (2017)
  6. ↑ Kurtz D. L., MacKenzie H. F. (2009) p.27

Author: Barbara Rojek

Retrieved from "https://ceopedia.org/index.php?title=Marketing_myopia&oldid=94264"