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Marketing Myopia

Group 1
General
Motors EV1
1996
Overview

A Unique Selling
Proposition

Why was it
discontinued?
Myopia
Product centered
approach

Timing & Customer


Needs, Wants

Dangers of
R&D

Production
Pressures

Source: http://www.ino.com
Outline

Introduction
What is Marketing Myopia?
Key Highlights of Levitts Article
Examples
Conclusion
What is Marketing Myopia ?

Marketing myopia develops when a


companys competitive domain is
defined primarily according to its
products rather than the needs of the
market (Levitt, 1960)
Teds Article
The term Marketing Myopia' was first expressed
in a Harvard Business Review article written by

Theodore Levitt in 1960.


The article revolutionized the thought
processes of business managers who
were narrowly focused on the products
that they sold.

It also describes a excellent perspective


on the mind of your customer.
Highlights of Teds article
Levitt argued that many companies incorrectly take a
shortsighted approach to marketing, viewing it as merely a
tool for selling products.

Instead, he argued that companies


should look at marketing from the
consumer's point of
view.
He also introduced a famous question that all companies
should ask before they demand for their firm's products
or services.

What business are you really in?


Highlights of Teds Article

An industry should be a customer-satisfying process, not


a goods-producing process.

Organizations must learn to think of it not as producing


goods or services but as buying customers.
As doing the things that will make people want to do
business with it.
Levitt was able to put the reasons of
stagnation of growth industry in a
cycle, which he termed as

Self-deceiving cycle

Population Myth Production Pressures

Idea of Indispensability Dangers of R & D


Bajaj Chetak
Scooter
Overview
Bajaj Auto Limited (BAL) manufactures and sells motorcycles,
scooters and auto rickshaws
The Chetak was BAL's first scooter model under the Bajaj
brand
Chetak was the only choice for millions of Indian families as
an affordable way of transport for decades
Was positioned as reliable and sturdy due to its durability, low
maintenance costs, and versatility
Unavoidable dowry during 70s and 80s in India
How Myopic was it
Decline in Bajaj Market

o During late 90s, motorcycles became more popular than the geared
scooters

o Reasons ;

India was undergoing a demographic change significant growth in the


proportion of younger people in the population

Disposable incomes of the middle class increased growth of the


economy

Many motorcycles with new models, improved designs and modern


technology arrived into the market, but no response to these changes
from scooters
How Myopic was it

The Company failed to understand the changing perception of


the customers towards scooters

Bajaj never did anything with the product - For 40 years Chetak
had the same look, same quality and style

But they made a mistake in leaving the scooter segment


completely. Contrary to expectation, the scooter segment has
not died. It has only changed
Highlights
Tried to sells product rather understand what
was the market needs

Population Myth

Idea of Indispensability
What could have been done

There was nothing wrong with the promotion, distribution


and the pricing. The major problem was in the Product. In
fact what BAL could have done was re-launch the product
with the following additional features:

Greater mileage

Riding comfort

Electric start

Better R&D to cater the current market needs


Ford
Model T
car
Overview
More than 15 million Model Ts were built
Prized for its low cost, durability, versatility, and ease
of maintenance
Several body styles, including a five-seat touring car,
a two-seat runabout, and a seven-seat town car
From 1913 to 1925 the car was mass-produced in
only one colourblack
How Myopic was it

As time changed, the consumers started thinking in


terms of benefits and value they get from the Model T
car

Ford replied saying, "Any customer can have a car


painted any colour that he wants so long as it is black"
Highlights
Tried to sells product rather understand what
was the market needs

Idea of Indispensability

Production Pressures
Dettol
Overview
Started its journey in 1933 as an antiseptic
liquid

Market leader for a very long time because of


its multi uses and category leadership strategies

During 1980's Dettol found that the sales

are remaining stagnant


How Myopic was it

Seldom used so there were no repeat


purchases

Belief of no competitive substitutes

No innovations to meet customer's


ever changing needs
Highlights
The second argument by Theodore Levitt
The belief that there is no competitive
substitution for the industry's major
product
Could easily bring about the downfall for
the organization
What could have been done

Proctor and Gamble's


Safeguard soap came out
with a better smell
targeting kids

Customer centric and


creative approach of
Safeguard, it gained market
share and market
leadership from Dettol
What could have been done

To overcome the marketing myopia


Reckitt has differentiated its products
to other categories
Dettol soap, Dettol plaster, liquid hand
wash, shaving cream etc.
Celltel
Overview
No 1 mobile operator in early 90s

Currently operating as No 3

Acquired by two companies Tigo and Etisalat

Do you have a Celltel ?


How Myopic was it

Product oriented than customer


oriented
Assume growth is assured
Assume no substitute to it
Continuous improvement on analog
technology
Highlights

Product oriented than customer oriented

Population myth

Idea of indispensability

Dangers of R & D
What could have been done

No 1 mobile operator
since 1997
Broad vision
To be the undisputed leader in the
provision of multi-sensory connectivity
resulting always in the empowerment and
enrichment of Sri Lankan lives and
enterprises
What could have been done

Continuous customer
orientation
Market Research and
Outside in approach
Innovation
Competitor focus
marketing program and
marketing intelligence
Conclusion
Conclusion
Conclusion
Conclusion

Marketers must overcome marketing myopia and stop defining


competition in traditional category and industry terms. Coca-Cola,
focused on its soft drink business, missed seeing the market for coffee
bars and fresh-fruit-juice bars that eventually impinged on its soft-drink
business.

Marketing Management, 15th Edition


Q&A
Thank you.

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