Companies should satisfy customers through inventiveness and skill. The dry cleaning industry is currently an industry that is in turmoil. Innovations such as synthetic fibers and chemical additives have cut the need for dry cleaning. Utilities may be natural monopolies now, but in the future the rise of renewable energy sources such as solar can replace the need for the electric grid infrastructure. The supermarket industry is extremely competitive and has many participants. Market changes can alter the longevity and profitability of an industry. According to Levitt (2004) there is no such thing as a growth industry since there are only companies organized and operated to create and capitalize on growth opportunities. The oldest growth industry is the petroleum industry. The population myth is the belief that profits are assured by the expanding and more affluent population. In an expanding market companies often fail to apply imagination in its decision making. The petroleum industry is an example of an industry that has become complacent in its business practices due to the fact that the petroleum industry’s efforts have focused on improving the efficiency of getting and making its product, not really on improving the generic product or its marketing. This has cause innovation to be stagnant among industry participants. The development of superior alternative fuel has come from outside the oil industry. The oil industry is convinced that there is no substitute for its major product, gasoline. The most important innovation that had a great impact on the demand for crude oil was the invention of the combustion engine. The combustion engine created the demand for gasoline. An industry that is competing with the oil industry is natural gas. Natural gas serves as a substitute product of heating oil. The U.S. production of petrochemicals accounts for 2% of the demand of all petroleum products. The industry is growing at a rate of 10% per year. There is no guaranteed for obsolesce of a product in the future. When companies focus too much on production their marketing efforts get neglected. Unit costs decline as production increases. Mass production creates greater pressure to move the product. Marketing oriented companies try to create value-satisfying goods and services that customers want to buy. The seller is supposed to get input from the buyer to determine what goods the seller should offer to its customer base. The automobile industry spends millions of dollars annually on consumer research. The Detroit auto industry has not been doing enough to satisfy the needs of the customers. Some of the weaknesses of the U.S auto industry are point of sales, automotive repair and maintenances. The mentality of the Detroit executives is that marketing is a consequence of the product instead of vice-versa. Henry Ford is the most brilliant and senseless marketer in American history. A concept discussed in the article that I believe is extremely important is the emphasis on customer orientation instead of product orientation strategy. Focusing on the customer has become more important than ever in order to improve the customer retention rate of the enterprise. Competition is tougher than ever in virtually every industry. Today American companies face major competition from foreign companies. An advantage of the globalization movement is access to a large supply of
The article Marketing Myopia is a very informative and interesting piece of marketing literature. One of the main points of the article is that companies should be customer oriented instead of product oriented. Two industries that were not able to take advantages of market opportunities due to their product centric mentality are the railroad business and the Hollywood movie industry…
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.
It changes the perspective of marketing especially to the short-goal entrepreneurs. It is a revelation to companies that engage in business motivating them to take advantage of the growing times and economies. He passes his ideas in a challenging manner and this makes the article fantastic.
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.
oad industry did not flourish as it could have because the players in the industry defined their business rather narrowly – as a railroad business rather than transportation business. The railroad industry faced problems not because other players like airlines, bus operators,