Myopia for Marketing Can Cost You
Marketing Myopia is the failure to define an organization's purpose in terms of its function from the consumers' point of view.
Example[/b]
Railway companies that define their markets in terms of trains, rather than transportation, fail to recognize the challenge of competition from cars, airlines, and buses. It is therefore necessary to define the needs of the consumer in more general terms rather than product-specific terms.
Marketing Myopia is the short sighted look of the managers in wrongly identifying the category and goals of the company, not looking at the whole industry of the product neglecting the fields of opportunities in their area of industry, not listening to the customer's real. Short sighted and inward looking approach to marketing that focuses on the needs of the firm instead of defining the firm and its products in terms of the customers' needs and wants, such self-centered firms fail to see and adjust to the rapid changes in their markets and, despite their previous eminence, falter, fall, and disappear. One reason that short sightedness is so common is that people feeling that they cannot accurately predict the future. While this is a legitimate concern, it is also possible to use a whole range of business prediction techniques currently available to estimate future circumstances as best as possible. People who focus on marketing strategy, various predictive techniques, and the customer's lifetime value can rise above myopia to a certain extent. This can entail the use of long-term profit objectives.
Reasons of myopia[/b][/b]
The belief of the companies that as more and more of the population becomes affluent, the market expands and more and more people buy the goods. The belief that there are no substitutes for the industry’s major products. Emphasis on mass production and in economies of scale i.e. being product oriented rather than being customer oriented. Lack of experimentation, improvement, and manufacturing cost reduction,
OVERVIEW[/b]
HM an Indian automobile manufacturer is a part of Birla group of Industries. The company was the largest car manufacturer in India before the rise of Maruti Udyog Ltd. (MUL) Ambassador launched in 1958 was known as the first Indian car, owes its design and technology to British car model Morris Oxford built by Morris Motor Co at Oxford, U.K. Ambassador quickly occupied and ruled Indian markets from 1958-1980.
Ambassador- SUCCESS STORY [/b][/b]
Ambassador was widely used as a taxicab and as a government limousine.
It was the only car with Diesel option.
A sturdy car, ideal for Indian markets
Perception of being less expensive to maintain
Large Spaced.
Over 16% of brand sales came from the Indian
Government
Design environmental products to perform as well as alternatives Promote and deliver the consumer-desired value of environmental products and target relevant consumer market segments Broaden mainstream appeal by bundling consumer-desired value into environmental products Encourage positive word of mouth via consumers' social and Internet communication networks with compelling, interesting, and/or entertaining information about environmental products. Increasingly, consumers have grown skeptical of commercial messages, and they're turning to friends and peers for advice. The Internet, through e-mail and its vast, accessible repository of information, websites, search engines, blogs, product ratings sites, podcasts, and other digital platforms, has opened significant opportunities for tapping consumers' social and communication networks to diffuse credible "word-of-mouse" about green products. The website for Tide's Coldwater Challenge includes a map of the United States so visitors can track and watch their personal influence spread when their friends request a free sample.
Example of Marketing Myopia[/b][/b]
Example of the firm and organization in the business of railroads, as per C. Levitt Myopic marketing theory this business did not stop growing because the need for passenger and freight transportation declined. That grew. It is in trouble today not because that need was filled by others (cars, trucks, airplanes, and even telephones) but because it was not filled by the rail-roads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry incorrectly was that they were railroad oriented instead of transportation oriented; they were product oriented instead of customer oriented.
A company wants to sell and market to their segment audience and tries to get them to buy their product through marketing practices but fail to make the audience realize how that product is going to improve their lives or businesses by purchasing it. It is a short term approach to marketing and lacks long term vision.
Marketing Myopia is the failure to define an organization's purpose in terms of its function from the consumers' point of view.
Example[/b]
Railway companies that define their markets in terms of trains, rather than transportation, fail to recognize the challenge of competition from cars, airlines, and buses. It is therefore necessary to define the needs of the consumer in more general terms rather than product-specific terms.
Marketing Myopia is the short sighted look of the managers in wrongly identifying the category and goals of the company, not looking at the whole industry of the product neglecting the fields of opportunities in their area of industry, not listening to the customer's real. Short sighted and inward looking approach to marketing that focuses on the needs of the firm instead of defining the firm and its products in terms of the customers' needs and wants, such self-centered firms fail to see and adjust to the rapid changes in their markets and, despite their previous eminence, falter, fall, and disappear. One reason that short sightedness is so common is that people feeling that they cannot accurately predict the future. While this is a legitimate concern, it is also possible to use a whole range of business prediction techniques currently available to estimate future circumstances as best as possible. People who focus on marketing strategy, various predictive techniques, and the customer's lifetime value can rise above myopia to a certain extent. This can entail the use of long-term profit objectives.
Reasons of myopia[/b][/b]
The belief of the companies that as more and more of the population becomes affluent, the market expands and more and more people buy the goods. The belief that there are no substitutes for the industry’s major products. Emphasis on mass production and in economies of scale i.e. being product oriented rather than being customer oriented. Lack of experimentation, improvement, and manufacturing cost reduction,
OVERVIEW[/b]
HM an Indian automobile manufacturer is a part of Birla group of Industries. The company was the largest car manufacturer in India before the rise of Maruti Udyog Ltd. (MUL) Ambassador launched in 1958 was known as the first Indian car, owes its design and technology to British car model Morris Oxford built by Morris Motor Co at Oxford, U.K. Ambassador quickly occupied and ruled Indian markets from 1958-1980.
Ambassador- SUCCESS STORY [/b][/b]
Ambassador was widely used as a taxicab and as a government limousine.
It was the only car with Diesel option.
A sturdy car, ideal for Indian markets
Perception of being less expensive to maintain
Large Spaced.
Over 16% of brand sales came from the Indian
Government
Design environmental products to perform as well as alternatives Promote and deliver the consumer-desired value of environmental products and target relevant consumer market segments Broaden mainstream appeal by bundling consumer-desired value into environmental products Encourage positive word of mouth via consumers' social and Internet communication networks with compelling, interesting, and/or entertaining information about environmental products. Increasingly, consumers have grown skeptical of commercial messages, and they're turning to friends and peers for advice. The Internet, through e-mail and its vast, accessible repository of information, websites, search engines, blogs, product ratings sites, podcasts, and other digital platforms, has opened significant opportunities for tapping consumers' social and communication networks to diffuse credible "word-of-mouse" about green products. The website for Tide's Coldwater Challenge includes a map of the United States so visitors can track and watch their personal influence spread when their friends request a free sample.
Example of Marketing Myopia[/b][/b]
Example of the firm and organization in the business of railroads, as per C. Levitt Myopic marketing theory this business did not stop growing because the need for passenger and freight transportation declined. That grew. It is in trouble today not because that need was filled by others (cars, trucks, airplanes, and even telephones) but because it was not filled by the rail-roads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry incorrectly was that they were railroad oriented instead of transportation oriented; they were product oriented instead of customer oriented.
A company wants to sell and market to their segment audience and tries to get them to buy their product through marketing practices but fail to make the audience realize how that product is going to improve their lives or businesses by purchasing it. It is a short term approach to marketing and lacks long term vision.