Marketing Myopia (Essay Sample)

Marketing Myopia Student Name Course, Department Instruction Instructor Date Marketing Myopia Introduction The term 'marketing myopia' was devised by Levitt. It is defined as a business suffering from viewing marketing strictly through selling a particular product to customers without paying attention to their needs or wants in an ever-changing marketplace. Though traditionally viewed as short-term thinking tendencies that can cause harm for businesses failing to keep up with customer needs, it's essential to recognize the potential positive outcomes associated with reframing "myopic" scenarios into opportunities for growth and evolution when addressing changing customer trends over time. Review of Theory and Practice Regarding Marketing Myopia Theodore Levitt's "Marketing Myopia," published in 1960, was marked by an analysis of how businesses had failed to consider consumer trends and demand shifts when conducting marketing efforts. The classic article examines failures due to this myopic thinking or lack of vision, which can be attributed to managers who become fixated on the product vs. what that particular product can provide its customers within an evolving industry context (Levitt, 2004). A noteworthy insight in the article is the origin of the expression 'oil for China's lamps.' This phrase represents the concept that through the introduction of another product, both demand and recognition can be produced when otherwise there was none before (Levitt, 2004). In other words, an established problem has to exist first for companies to invent a solution whose potential needs or desires had not been thought of until its arrival, thus creating a newly discovered service/product niche and customer base within society more generally. In his article, Levitt illustrates the concept of marketing myopia by referring to various examples. He discusses how railroads were not able to capitalize on the growth in other forms of transportation because they saw themselves as being solely in "the train business" instead of evaluating their customer needs and requirements for different modes of transport to remain competitive against rivals who did see these possibilities as potential opportunities (Levitt, 2004). This example demonstrates the need for business owners, management team leaders, and marketers to look ahead and anticipate upcoming consumer trends to find ways of accommodating changing markets through tailored products or services. Another well-known example he references is that of movie theaters, as an illustration of businesses lapsing into marketing myopia by defining their business incorrectly. Hollywood traditionally viewed itself as in the movie business, when they were actually providing entertainment and therefore not taking advantage of new avenues or opportunities for providing these consumers with what they required (Levitt, 2004). Despite initially refusing to accept Television as an alternative entertainment, it ultimately saved Hollywood from its fiscal woes when new industry entrants and writers shifted the old movie companies' power away. It thus serves as a junction between product orientation and customer service, of which understanding consumer requirements is vital for success if one remains relative within ever-evolving markets. Causes of Marketing Myopia Myopia is caused when companies focus too narrowly on selling products at the expense of understanding customer needs and effectively meeting those demands (Aliyar, 2023). This leads to a lack of long-term success due to an inadequate response to changing consumer trends, resulting in becoming disconnected from consumers' expectations over time. Other causes include not adapting to change quickly enough, leaving businesses behind compared to their more modern rivals, and losing market share. Those unwilling or unable to keep up with advances in technologies and business processes can find themselves lacking the flexibility required for success (Aliyar, 2023). Additionally, as outlined by Levitt, a false belief in a guaranteed self-deceiving cycle is another contributing cause of marketing myopia. Organizations can become overly confident that their existing products will continue to drive consumer demand and sales indefinitely for whatever they have released into the marketplace. This illusion of invincibility often results in overlooking or failing to keep up with technological shifts and other transformations within the industry (Aliyar, 2023). Negative Impact of Marketing Myopia on Businesses Businesses suffering from marketing myopia often face negative sales and brand recognition impacts. When companies are stuck within narrow views that ignore customer needs beyond the interest toward immediate product sales, this can result in a sharp decline in return investments by investors and customer loyalty over time (Bhasin, 2023). This lack of adaptive behavior can also be reflected in weakened consumer trust related to criticism about being unresponsive or complacent when new technologies become available/less expensive options enter the industry marketplace (Bhasin, 2023). Additionally, companies affected by myopia may find themselves with diminishing customer bases as customers search out businesses better equipped to meet their needs. This negligence in responding appropriately and identifying opportunities that fulfill customer wants or expectations can result in missed chances at taking advantage of profitable industry niches and limit the path forward for future growth. How to Avoid Marketing Myopia There are several ways for companies to help prevent marketing myopia...