Marketing Myopia

This term was propounded by Theodore Levitt in 1960’s and became most popular when it got published in Harvard Business Review (HBR) magazine in 60’s. This is the most common mistakes made by companies when they start focusing on the product / services which they sell instead of focusing on customer’s need. The main motive of doing business gets defeated when we don’t act as per consumers need and demand. We have seen in past as to how a brand / product get extinct or loses the market share when they don’t focus on consumer’s needs. Keep a constant eye on the changing preferences of end consumers and act accordingly. 

Always ask yourselves below mentioned questions and be focused.

• Who is your competitor and what is their next move? Whatsapp posed a great threat to facebook.com which was instantly noticed and later acquired by facebook.com. Online e-commerce portals such as Amazon.com, ebay.com, flipkart.com etc are posing equal threat to retailers who has shops in expensive shopping complexes.

• Which industry you are catering to? Think of your industry in broader terms. Rail road industry can’t be separated from Transportation industry.  

• Which are the nearest substitutes available in market? Typewriter industry couldn’t see computers as their competitors and got finished. So be careful.

The most classic example of Marketing Myopia published in HBR magazine was about the Railroad industry which couldn’t foresee Airline & Road transport as their competitor and lost their customers to Airline and Road transport. They couldn’t associate themselves to Transport industry and thought they are isolated from this industry. 

Adapt to changing customer needs faster or else die. Market leaders of one time can also become extinct or lose market share drastically. Think of Eastman Kodak, Remington typewriter, Xerox photocopy machines, Hindustan Motors (Ambassador Cars) and many more. 

Attracting customers has become the great challenge for businesses nowadays. Companies should focus on below mentioned key factors which increase the brand loyalty and bring end consumers closer to you.

• Build strong bonds with customers.

• Satisfy their needs.

• Maintain them by doing value addition or diversification. 

Never stop evolving yourself. Examples could be Apple inc., Nike inc. (diversified from sports gear manufacturing to apparel), Microsoft and many more. Electric lighting companies first started to produce bulbs, then tube lights, thereafter CFLs and now LED bulbs. There are lots of companies who couldn’t see this shift in consumer’s demand got finished. Mobile manufacturers adopted “Android” to survive and few companies lost their market share drastically who didn't accepted or couldn't foresee the future. For example: Nokia (later shifted to Microsoft OS and acquired by Microsoft thereafter), Motorola etc. 

You will be astonished by the fact that out of Top 100 companies worldwide in 1930’s, only approx. 15 companies are surviving & rest has been shut down and only 5-8 are profit making till date.