So, what did Kodak do to prepare for the coming storm? If you dont keep an eye on the pulse of your industry and where people are headed, youll be left behind. You must also reference at least one journal article from the Online Library and one article from a business-related or news website; therefore, your essay should be supported by at least two sources. Avoiding marketing myopia takes some work and additional research. One of the biggest marketing myopia no-nos is ignoring global trends. Marketing myopia is a term used to describe the shortsighted view of marketing that only focuses on immediate results. You may unsubscribe from these communications at any time. Often, the psychological needs of a customer are far more important than their physical ones. Regardless of which number is right, there is no doubt that a lot of time and energy go into marketing products that will no longer exist in a year. List the reasons Levitt gives for the demise of myopic industries over time. Flexibility is essential for any business strategy, and proactively dealing with challenges is critical. The Japanese cosmetics brands competitors were gaining more consumer loyalty thanks to their exclusive perfume products. Another common cause is a failure to keep up with changes in the marketplace. Marketing myopia is a term that describes the need for businesses to future-proof their products or services' usefulness instead of merely focusing on selling said offerings. Marketing Myopia is a seminal piece published in 1960 by the Harvard Business Review. Entertainment Said discoveries are currently being applied to potential Alzheimers disease cures. In the technology industry, an acquisition allows a company to reinforce its existing employee base with new scientists and engineers with fresh ideas and goals. To better understand how these companies failed to survive in the modern world, the next section will unpack why companies suffer from marketing myopia in the first place. 1-Nike has not a myopia plan because it has a big competitor (adidas . Some markets use grievances as complimentary advice. Successful companies focus on customer needs, not their own products and services, which canand willbe replaced by competitive alternatives, either ones they make themselves or those produced by existing or potential competitors. Except that it didn't join the Google gang as you might have expected. Begin by establishing exactly who your rivals are, specifically those that excel at pleasing your target segment. In 2010, Bitcoin was worth $100. Kodak probably remembers. Marketing Myopia is the name given to companies that are short-sighted and look no further than their own product. When was the last time you bought a physical magazine, book, or newspaper? Long before phones had large, high-resolution touchscreens and countless apps, Finnish tech company Nokia paved the way for mobile phone innovation. According to Levitt, any business leader can incur catastrophic losses without a foolproof marketing strategy. Suppliers dont just provide mundane goods and services. Netflix simply made Blockbuster's services obsolete. On the other hand, Blockbuster was sinking with its numerous legal disputes and business issues. People stop by Starbucks in the morning to drink coffee but the job theyre getting done is filling their stomach. Those that work in programmatic ad buying will purchase advertising space for any number of companies and industries. However, it can help inform it. An example of competition is Google and DuckDuckGo. Others might find your wares mildly interesting, while others would never think of using them. Abstract. All rights reserved. For example, the "EarthLight" CFL lightbulb from Philips, launched in 1994. Growth isn't assured by profit. Many experts believe that Blockbuster's downfall was due to marketing myopia. Eventually, Blockbuster finally invited Netflix to the party for an unforeseen meeting. Myopia means 'near-sighted'. There is no doubt that Levitt believed the entire corporation must be viewed as a customer-creating and customer-satisfying organism, and Deighton admits that this is one of the potential pitfalls of Levitts original idea: it puts great trust in the consumer. In his original article, Levitt acknowledged how difficult it can be to listen to customers; he wrote: Consumers are unpredictable, varied, fickle, stupid, shortsighted, stubborn, and generally bothersome. But Smith, Drumwright, and Gentile go even further, arguing that its not just about listening to consumers but about hearing all of the stakeholders who contribute to your companys success, such as employees, suppliers, shareholders, competitors, media, and community members. Levitt suggests that leaders ask themselves: What business are we really in? They want a quarter-inch hole!. The following are the four myths Levitt discusses in his article: Myth 1: An ever-expanding and affluent population will ensure the companys growth. With this in mind, review your data, take the time to gain insights, and then come up with ways to improve your performance. Mobile phones were rapidly becoming a fashion accessory in countries like Japan, beyond their functional uses. But by 2009, the company had filed for bankruptcy. We will also look at some relevant modern marketing myopia examples and the best marketing strategy to ensure your business remains relevant. "Marketing Myopia" is a seminal piece published in 1960 by the Harvard Business Review. The myopia that Levitt describes is a lack of insight into what a business is doing for its customers. These Parisian chains, along with a new Gien-based production line, propelled Shiseido out of its rut. (Levitt 1975) In essence it implies that organizations should not define their business based on their products and should attempt to identify the business based on customer centric The problem with this strategy is that most consumers in the sports apparel industry are not professional athletes. . Unless your product or service is incredibly niche, you might find that it could be easily replaced by another company that does it better. Understand the job your customer needs to get done but also think of novel ways to achieve the end goal. Most people will read articles published online, and thankfully many newspapers and magazines have made the digital migration. But what are customers really looking for? They dont want newspapers or magazines, he says. The business world and academia are becoming increasingly integrated. Given that Levitt coined the term back in 1960, you might be wondering whether marketers have a different understanding of marketing myopia. Toward the end of the 20th century, consumers began embracing the convenience and high-quality photos that digital cameras provided. He suggests that its time for publishers to ask Levitts central question: What business are we really in? Rather, Levitt wished to set a timeless standard, or rather a provocation. There are two major methods of overcoming marketing myopia: Geat post! Any company's services are only as relevant as the problems they solve. Few companies can resist the idea of increased profits that result from decreasing unit costs through mass production. For a while, people will continue to use the trains and buses but more and more will leave you because they dont want to use a bus to cross the country. Marketing myopia can affect any business, regardless of its size. Giving importance to just one aspect of the marketing attributes without focusing on what the customer actually wants. So, how did a business that dominated 50% of the United States' home rental market crumble in such a dramatic fashion? A couple of months can make a world of difference in consumer behavior. Our following example of marketing myopia involves a company that, despite having invented digital photography, would eventually be destroyed by it. Producing products in large quantities (mass production) without knowing consumer demand in the market. In 1975, a Kodak engineer called Steve Sasson created the first digital camera. You can get more detail in the follow up call. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. I recommend the insightful book When Coffee and Kale Compete by Alan Klement to better understand the Jobs To Be Done Theory. According to Levitt, businesses should address the practical aspects of their product in a societal context, rather than merely trying to sell things as best as possible. They want to be entertained, informed, stimulated, by people more interesting than their friends and acquaintances, he argues. Now, let's look at the case of marketing myopia in small businesses. Once you know where your business stands in the market, you can begin redesigning your offerings to win over more customers strategically. -ignorance of competition inside and outside sport. While we aren't sure who hurt Levitt, he didn't seem to have the highest opinion of consumers. Associating yourself with relevant research organizations and universities opens up whole branches of essential knowledge that would otherwise be closed off. Learn how to communicate with your customersstrategically. However, Netflix continued to dominate the DVD rental market, while Blockbuster ignored the impending threat. After all, companies like BlockBuster saw immense success until they didnt. The ads they use are uninspired (to put it lightly). When the company was first founded, it marketed its products exclusively to men. Free and premium plans, Content management software. Modern businesses have an environmental debt, especially the largest and most profitable ones. While Levitt's posit might have been put forward many decades ago, it still stands true today. If you had invested $20,000 in 2014 and sold at the peak, youd be a millionaire many times over. Its a theory that states companies focus on their needs and short term growth strategies. The Northern European Nokia dominated the mobile phone market in 1998 and captured more than half of the associated global market share in 2007. In 2007, Nokia was a global market leader in mobile phones. While international cooperation can be incredibly beneficial, it also runs the risk of running into contention. You can get by doing what youve always done. Understand your customers Jobs To Be Done, Send out regular customer development surveys and have conversations, Understand the jobs to be done of your customers and tailor it to your customers, Continuously run customer development surveys to stay up to day with shifting consumer trends. The more comprehensive your offerings are, the more likely your customers will depend on you, especially if you add mixed and real value to their lives. Myopia is characterized by the inability to see beyond your own business. In 2004, Nokia's sales grew by 25 percent to 1.5 billion euros ($2 billion). At the beginning of 2018, it peaked at nearly $20,000 a pop. As long as we have the ability to make decisions and change our minds, no product will last forever. This surveillance lets you calculate how to best competitors offerings and pull more customers. Unfortunately, the clock never stops long enough to answer the question, Why are you doing what you are doing? So its far too easy to lose sight of the big picture. The other thing that made the article so significant at the time of its publication is that it reminded CEOs that marketing is part of their job: [Levitt] tells the leader of the organization: you are in business because you have a customer. Follow to join The Startups +8 million monthly readers & +768K followers. The belief that a companys product has no rival can make them vulnerable to innovations and competition from outside the industry. Most businesses want to grow and be successful, but what they often don't realize is that success doesn't happen overnight. Levitt believed that executives couldnt predict the futureand shouldnt try. Subscribe to be notified of new content on, Enjoying The Clearest Marketing Vision Possible, New To Marketing? Instead, there are really only companies continuously capitalizing on growth opportunities. HBR Learnings online leadership training helps you hone your skills with courses like Marketing Essentials. Fast-forward to the mid-2000s, Netflix surpassed Blockbuster as lord of the rental market with a 36% share. Instead, you should connect with your customers to the point that you can easily predict how they would behave. Many businesses become myopic because they are too focused on the past. At one stage, Shiseido discovered that its market share was depleting. Before streaming services like Netflix arose as a competitive substitute to Blockbuster, people physically rented videos from Blockbuster for their Friday night entertainment. -The belief that winning is absolute. Lets say you used to solve the need of getting from point A to point B. Theres debate about exactly what percentagesome say it is 75%, others claim its closer to 95%. The result of this action is that the companies increase their efficiency of making their products, rather than increasing the value their products provide customers. There seems to be a myopic attachment to the word publish that is a production-oriented take on the industry. What the customer needs is a dream. If Mr. Plank would like to keep the dream of Under Armour alive, he will have to stop telling customers what they need and instead start listening to what consumers want and need from the marketplace. Ironically, by focussing on mass production, a company invests in only meeting its goals and fails to understand customer needs and changing trends. As a result of this apparent series of wins, managers can become lazily satisfied. Now, Im streaming Netflix on my LED TV. It is easy to fall into the trap of thinking you know what your consumers need, as Blockbusters or Nokia did years ago. Marketing myopia can also be caused by a lack of investment in marketing research. And any attempts to augment, complicate, or interfere with the polemic dont work. The idea has become the foundation of modern marketing. Ensure that you are all on the same page regarding objectives. Market 3. They should be built around solving a common problem rather than a potential or even imaginary one. Taxi companies lost sight of the immediate needs of their customers. Even if a person floods their Facebook timeline with endless global warming-related articles, they might be reluctant to buy a green product if they fail to see a personal benefit like improved performance or cost savings. Beyond trends, overseas industry leaders can also provide a wealth of knowledge and opportunities. You might struggle to find a business disaster as cringeworthy as Kodak's one. Programmatic ad buyers know how to stay ahead of the game. Free and premium plans, Operations software. There are a few things that can lead to marketing myopia, including: Business focus. Some examples are: More focus on selling rather than building relationships with the customers. Worse, Antioco believed that he was in charge of the film rental industry when, in reality, he dominated VHS tapes, which were rapidly falling out of favor. Any marketer is obligated to be concerned with programs, tactics, campaigns, etc. The following section will detail how you and your business can ensure that you never become irrelevant or outdated in the market. Let's take the television industry, for example. Sadly, even when a business's customers start to leave, marketing myopia will often remain until it is too late. In the mid to late ninetys the internet was the only place to be. The term was coined by the late Harvard Business School marketing professor, Theodore Levitt, in a 1960 article by the same name (republished in 2004). Ten years ago, this wasnt a major concern for everyday consumers. Now, your customers want planes. One of the biggest dangers that can prevent a business from achieving its goals is marketing myopia. It can be challenging to define which field you work in and your customer base. During its most successful years, oil was cheap but there was no incentive to develop products that meet the needs of its customers or deliver top tier service. Let's now look at some modern examples of marketing myopia to put Levitt's cautionary tale into perspective. When was the last time that you used a film camera? Broadening your horizons not only helps your company dodge marketing myopia, it also acts as a sound resource for innovation. As mentioned earlier, many companies assume that they are members of a growth industry. Success! Apple and Android were developing their revolutionary respective operating software, iOS, and Android. Blockbuster had tried to imitate Netflix's DVD-by-mail strategy only too late and was eventually delisted from the New York Stock Exchange in 2010. It was innovation in the wrong direction. Its the same way some people look at marketing. Just because something has always been done a certain way doesn't mean it's the best way. A more serious example would be Standard Oil or the railroads in the late 1800s and early 1900s. Free and premium plans, Customer service software. Recall the times when you had to stuff a box of paper business cards in your car. Blackberry They get lulled into thinking theyre in a growth industry, which, according to Levitt, dont exist. Old Spice is a good example of a company that was able to avoid marketing myopia. Durable Goods Let's look at the factors that knocked Nokia out. Published: Define marketing myopia and give four (4) examples in the current sport industry. According to Theodore Levitt, "There is no such thing as a growth industry." A great way to find out what people want from you is to run customer development surveys. Some small business owners might wonder where they fit in with the current market. At the same time, the smartphone revolution was underway. They were all the rage a few years ago. Unfortunately, the truth is more complicated than that. One of the most common causes is the business landscape. There will always be something that competes with sport. Those who failed to realize this shift was necessary and relied solely on prior success likely experienced great financial loss. Eventually, the Supreme Court stepped in and disbanded the company in 1911. Theodore Levitt may no longer be with us, but his wisdom lives on. Just a few years ago, Juicero received millions of dollars from investors and was considered a Silicon Valley darling. While you may complete most of your shopping online, that might not be so for your target segments consumer behavior. Despite Barabba's oracle-like accuracy, Kodak maintained that digital cameras were something to be feared. We discussed Levitt's self-deceiving cycle earlier. As an industry it needs to be aware of the products and industries that are taking away from it. The sad irony of Nokia's decay was that it had been one of the freshest and most innovative companies in cellular technology once. A daily dose of irreverent and informative takes on business & tech news, Turn marketing strategies into step-by-step processes designed for success, Spotlighting bold Black women entrepreneurs who have scaled from side hustles to profitable businesses, For B2B reps and sales teams who want to turn complete strangers into paying customers, Get productivity tips and business hacks to design your dream career, Free ebooks, tools, and templates to help you grow, Learn the latest business trends from leading experts with HubSpot Academy, All of HubSpot's marketing, sales CRM, customer service, CMS, and operations software on one platform.
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