He argued that there is no such thing as a growth industry, what is there is growth opportunities that one should take advantage of to enhance their welfare. Levitt also gives people a better understanding of misconceptions like the belief that growth is guaranteed by an expanding population. Instead, the commodities released should target a certain gender or age. He also shows that mass production does not always yield as expected due to imbalances in the scale of production. Mass production results to low cost per unit as the output increases. In production, one should focus on the quality of produce rather than the marketing. Good quality output markets itself as compared to poor quality ones that have to be pushed into the market. Since most enterprises needs lie on maximizing profits than it is more appropriate to focus on the company’s needs rather than customers’ needs. A brilliant marketer creates products that suit the consumer and are affordable. Good quality products in the market gain popularity faster when compared to poor quality ones by competitors. This gives the market true illusion of what your products are like. Theodore Levitt gives companies a clue on how to maintain efficiency with its rising popularity. An increase in output quantity tends to reduce unit cost, and if not monitored it pulls down the business. Through maintaining efficiency, companies are likely to enjoy larger profits and experience growth. He discards the belief that no competitive substitutes of outstanding products exists in the market. This is an entirely irrational belief. Every product in the market have their substitutes, it is only that you have not done the research on more products in the market. He mentions that, we should not focus on short-term benefits. The long run benefits, which most of the firms are not ready to wait. With changing times, people tend to change on preferences and tastes and therefore this prepares the business firms for these changes in the future. The short focus is what the author refers to as myopia. He gives examples of the railroad and oil industries that can be taken over by other close competitors. He adds that there is no guarantee on product obsolesce and gives an example of petroleum products which were used since time immemorial up to date but has never been exhausted. Technology improvement cause this and the discovery where other sources of energy have been resolved to hence the decline on use of petroleum products. The most salient thing on Levitt’s article is on maintaining the business in the market for the longest time and enjoying maximum profits. Business firms should set long-term goals to help them serve their customer needs in a more appropriate and reliable manner. This helps the products get established and therefore with time It dominates the markets. However, what Levitt has missed out is that he only talks of myopia back then not putting into consideration the present times whereby myopia has taken a different turn. There exists new forms of myopia especially where entrepreneurs’ get single minded instead of venturing into different fields in the market. Maybe accommodating other stakeholders in the market would help enhance venturing into the diverse existing opportunities. Another problem comes in when the firm misinterprets the true definition of a customer and satisfying their needs. With the changing times consumer
“Marketing Myopia” Name Institution Date Theodore Levitt published “Marketing Myopia” originally in 1960. This book offered insights on how to get equipped mentally before embarking on any business plan. Myopia means shortsightedness. It shows how any business should focus on satisfying customer’s needs and wants to maximize profits…
Theodore Levitt, in this important piece, argued that organizations must look to the future and never be complacent about their products because it is constant threat from obsolescence. This point is valid for several reasons and the most important of which is change.
The author analyzed the nylon and glass industries through the analysis of two real firms: DuPont and Corning Glass Works. Both these companies were product centered, but they were also customer oriented as well. The aluminum business continues to be a growth industry.
It talks about the strategy of doing business and marketing. Levitt argues that for a business to do better, focus should not be on selling products to customers. Rather focus should be on the customer needs and meeting those needs. According to the writer, most businesses that do not grow, or whose growth keeps declining have a management problem.
Taken literally, the name means short-sightedness in marketing, due to which the audience is unable to see the objects in the distant (future) and hence fails to plan adequately for them in the present. This phenomenon results in the audience losing out on opportunity which it could’ve capitalized on if it could have had a more visionary approach.
This concept is applied to marketing by Levitt, who claims that myopic marketers are unable to be proactive about their future plans and thus, fail to plan for it and miss opportunities along the way. This article would revolve around the importance of customer oriented approach that has been outlined in the essay by Levitt and as to how it applies to the real life situations even these days.
Marketing myopia is when marketers focus on existing customer needs instead of studying underlying customer needs. They concentrate on the product itself rather than on the benefits the product gives to the customers. As a result, they are unable to compete with smart marketers who focus on current customer needs and provide products by creating a brand experience for consumers (Principles of marketing, Book).
Yet one often another of these celebrated industries has come under a shadow. In truth there is no such thing as a growth industry. There are only companies organized and operated to create and capitalize on growth opportunities. The history of every dead/ dying industry shows a self-deceiving cycle of bountiful expansion and undetected decay.
The railroad industry faced problems not because other players like airlines, bus operators, etc., fulfilled the need of customers better but mainly because railroads could not fulfil the customer needs (Pinto, 2003). They focused on products instead of customer requirements.
But there are also many pitfalls in political marketing. The opposition is always trying to jam your message and prevent you from communicating properly.
This article is meant to be explanatory or educational and provide reasons