Appreciation of Marketing Myopia

THEODORE LEVITT MODEL IN CONTEXT OF THE CHANGING MARKET SITUATION

S I DHYESH PAWA R ZA I N A B QA S I M
July 5, 2013

CONTENTS
What business are you really in? No such thing as growth industry Marketing Myopia Illustration of Marketing Myopia through Current Market Scenario The Customer Oriented Approach Drivers of Change in the Market Strategic Model to combat Marketing Myopia

What business are you really in?

Why do certain industries, once known as Growth Industries now face issues of threatened growth or decline?
o Failure of Management o Improper definition of their Purpose o Product Oriented Approach

Lack of managerial imaginativeness & audacity

Inability to satisfy the public by inventiveness and skill

Paying little or no attention to customers basic needs and preferences

No such thing as growth industry

Growth Companies are succumbing to a cycle of growth, maturity and decay with the following beliefs:

1.
2. 3. 4.

Expanding population assures growth

No competitive substitute exists in the market Declining Costs with Mass production Focus on Technical R & D

Examples: Government Universities v/s Coaching Classes and Distance Learning Kodak Postal Services v/s Telecom Industry

Marketing Myopia
Concept introduced in article titled, Marketing Myopia (July-August 1960 issue of the Harvard Business Review) by revered marketing professor at Harvard Business School, Theodore C. Levitt. The shortsighted approach taken by organization where its focuses on the companys need and the products it produces rather than defining the business their in and defining their product in terms of the customers needs and wants.

Illustration from the Current Market

Possibly Myopic Organization - Telecommunication Companies Focus on mobile communication rather than communication business Threat from VoIP, Internet & Cloud Services

Combated possibility of being Myopic - Microsofts move to acquire Skype Microsoft Messenger becoming increasingly redundant Skype being used as the newest mode of communication in the mobile era.

The Customer-Oriented Approach

What a thoroughly customer-oriented management can do to keep a growthindustry growing Constant look out for opportunities for creation of customer satisfying uses. Concentrate on meeting customer needs rather than selling products.

Create and capitalize on growth opportunities

Drivers of Change in the Market

Natural Environment: Technology Demographics
Eco-conservation ban on mining

Titan: Fastrack to appeal to the youth segment

Blanket ban on plastic threatens plastic industry

Political/ Legal
Economic Cultural

Sub-prime Crisis

Strategic Model to combat Marketing Myopia

The following model illustrates the key decision areas on which business strategies should focus to avoid Marketing Myopia
Innovative Products & Segments
Related Industries or Dependent Industries

Organization
Geographical Diversity Distributed R&D Centers and Decision Centers

Q&A
THANK YOU
10