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Marketing Myopia - Theordor Levit

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					MBA504     : Marketing Management
MBA2012(C) : Group C-9




                       June 25, 2012
WHAT MARKETING MYOPIA IS?

DEFINE FOR SUCCESS

GETTING LOST IN THE “GROWTH INDUSTRY”

THINK BIG TO WIN BIG

MISCONCEPTIONS

CONCLUSION
    June 25, 2012
• Discussed on how Organizations can
  define their Industries Broadly to
  take Advantages of Growth
  Opportunities
• Published in Harvard Business Review
  in 1960
• More than 265,000 reprints were
  made
• Turning point in the acceptance of
  importance of marketing
         June 25, 2012
  Myopia can be literally defined as
     being “Shortsighted”


Marketing Myopia
When the Top Management of the
company do not focus on developing
the business to meet customer needs
and eventually results in failure.



           June 25, 2012
 Definition of a business will create the space in
  which the organization should operate
 Should be broader & consumer need and
  desire centric
 Marketing myopia occurs when definition is
  focused on the product
 Should be established by the top level of the
  company
 The leadership should be audacious & visionary


      June 25, 2012
 Companies should closely watch for opportunities
  and apply its know how
 No industry is bound to have more growth
  opportunities
 Self Deceiving Cycle – conditions that will lead
  you to think:
       Industry will expand everyday
       Superior product will never obsolete



       June 25, 2012
1. Population Myth
  Profits = More affluent population
  Expanding the market of the product not the
  product itself.


2. Shadow of Obsolescence                           1
  No substitute to a superior product
                                                4       2
  Less sensitive in consumer needs and wants
  Not Innovative                                    3

      June 25, 2012
3. Production Pressure
  Higher volume =Declining unit cost = Higher profit
  Mass Production = getting rid of stocks
  Sales focus less marketing focus
  Marketing is mistreated

4. Making a technically perfect product
  Too obsessed with R&D on technical aspect.
  Research is done on improving the product than meeting
  the consumer need (“superior product will sell itself”)
  Creativity is misused to sell the product
  New ideas are being ignored
         June 25, 2012
                    Refreshment
     Bottled                    Tea/ Coffee
      Water




                     Soft Drinks

• World's No 1 Carbonated Drinks provider
                                              Energy Drinks
                             Fruit
    June 25, 2012            Juices
                            Skin Cleansing



 Hand                                                Face Wash
Sanitizer
                              Toilet Soap
        •No 1 in the toilet soap market
        •Second highest turnover to the company
        • Iconic brands


  Body Wash                                       Hand Wash
            June 25, 2012
•   Defining the business broadly
•   Relentlessly focus on consumer needs
•   Not being obsessed with the product
•   Challenge the “status quo”
•   Doing “what is right” vs doing “what is easy”




        June 25, 2012
• Marketing Mania
• Sudden conversion from functionally organized
  company to market based organization
• Sudden & rapid expansion of marketing
  expenditure
• Serving the risk averse customer with complex &
  beautifully efficient products
• Expansion of existing product lines & adding new
  lines of business

      June 25, 2012
  Marketing Myopia                      Marketing Orientation

•Business is defined around the      •Business is defined on satisfying the
product (output)                     consumer desires & needs (outcome)
•Too much focus on technical         •Well focused on marketing
research                             research
• Marketing is not considered as a   • Marketing is considered to be the
value adding business function       focal point of business

•Complacent with the product         •Challenges “status quo” to identify
growth                               new opportunities

•Focus on features which can be      •Focus on understanding consumer
controlled easily (effectiveness &   needs which are difficult to predict
efficiency)
• Aims growth                        •Aims sustainable growth
•Lack of visionary thinking &        •visionary thinking & creativity is
creativity in leadership             well displayed in leadership
June 25, 2012
• http://businessmattersmagazine.com.au/announcements
  /marketing-myopia-revisited




      June 25, 2012

				
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