Market 3. The myopia that Levitt describes is a lack of insight into what a business is doing for its customers. What is marketing myopia? Questions like what is a digital business card or why is it better than paper cards are a thing of the past owing to the global adoption of digital alternatives. Oakland Athletics is the team that was featured in the film Moneyball. Free and premium plans, Operations software. Deighton says the idea of marketing myopia is still very applicable today, in part because the original idea wasnt very prescriptive. By the time 2014 rolled in, Nokia's marketing myopia had finally cleared, and it embraced Android as it should have years passed. Dont send it to your entire customer base at once. Make sure its yours. Theres debate about exactly what percentagesome say it is 75%, others claim its closer to 95%. And you dont have to look very far to see companies or industries that are suffering from this malady today. To clear your definition and start again with a white sheet can make or break a company. All that matters to them is their customer demands. Six years after EarthLight's dim 1994 launch, Philips rebooted its energy-saving lightbulb with a different name and design in 2000. A great way to find out what people want from you is to run customer development surveys. Too many businesses are under the assumption that their product's demand will meet an ever-rising supply. It would be easier if consumers stayed the same youd only have to do market research once, identify the strategies that worked and stick with them. The genius of the original article is that it is so easy to be myopic when it comes to marketing, says Deighton. Theyre expensive and youre not interested so you ignore them. Its a theory that states companies focus on their needs and short term growth strategies. The concept has stayed in tact over the last 50-plus years. One of the best ways to remain progressive and innovative as a company is to work with what IBM calls "Renegades and realists" to help "Drive bold change.". -Poor sales and service. Examples of Marketing Myopia: Why did Nokia fail? This can happen when businesses become too comfortable with their current products and services and fail to adapt to new trends or technologies. Predicting growth without conducting proper research. Our following example of marketing myopia involves a company that, despite having invented digital photography, would eventually be destroyed by it. Marketing Myopia | Sports Marketing for Dummies Myth 4: Technical research and development will ensure our growth. From there, they branched out into sleepwear that focused on helping athletes recover from workouts. Innovation is expensive because you invest a lot of money for products and services that may not catch on. All empires must fall, however, and Blockbuster's $3 billion value would soon be sapped by late fees of around $800 million. Now, you can share your professional details electronically. Define marketing myopia and give four (4) examples in the current sport industry. 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. Most businesses want to grow and be successful, but what they often don't realize is that success doesn't happen overnight. A few examples: These are just the notable ones. Sadly, even when a business's customers start to leave, marketing myopia will often remain until it is too late. See pricing, Marketing automation software. You might have seen QR codes at your local restaurants and scanned them to see their menus. Today, Kodak's market value stands at around $140 million, and the company often edges toward bankruptcy. In 2007, Kodak released this weirdly bombastic advert: A business has to be fluid, adaptable, and humble to survive. Levitt didnt offer ten steps to eliminate marketing myopia. His Harvard Business Review piece on marketing myopia advised a business model that focused more on the consumers' needs than the company's. They want a quarter-inch hole!. One of the biggest dangers that can prevent a business from achieving its goals is marketing myopia. Deighton points to IBM Interactive Experience, IBMs consultancy that combines analytics, design, and technology (and brings in $2 billion in revenue) as an attempt to think past what they produce and say, were not in the business of information processing, were delivering the communications that are valued by consumers.. Kodak probably remembers. Rather, companies can capitalize on "growth opportunities.". The business world is developing so quickly that any company holding onto the past is bound to join it. The jeans you wear for each occasion are different. The industry a company is in today may not be the same one its in next year: In todays very fluid times, its more accurate to say eco-system. Disruptions are constantly challenging the stability of industries. Take programmatic ad buying. After decades of decline, Kodak's film-focused photography model would eventually be trumped by the digital age. Unless your product or service is incredibly niche, you might find that it could be easily replaced by another company that does it better. Despite Philips' best efforts to curb our collective impact on the environment, the EarthLight failed to turn consumers on. Marketing myopia might sound like a somewhat nebulous term and is probably best understood with a few relevant situations. How Myopic Marketing Kills Brands - Case study of Indian Brands The Marathon lightbulb assured consumers more affordable electricity bills ($20 per lightbulb lifetime). The company focused on film and prints, even as its customer base shifted to digital. There are a few things that can lead to marketing myopia, including: Business focus. Examples of marketing myopia Free Essays | Studymode [Solved] | Course Hero When was the last time you bought a physical magazine, book, or newspaper? Marc Randolph, Netflix's original CEO, tried to sell his DVD rental business to John Antioco, Blockbuster's CEO, for $50 million. The company had a large share of the world's mobile phone market and even more important, it held a dominant position in Europe. There will always be something that competes with sport. NIKE NIKE was originally known as Blue Ribbon Sports . We will also look at some relevant modern marketing myopia examples and the best marketing strategy to ensure your business remains relevant. Its first product was a tee-shirt that wicked away sweat. A marketing professional might pump out reams of campaign-related data and resources daily, but if they don't answer the pertinent why questions, they might be missing the plot. Another common cause is a failure to keep up with changes in the marketplace. Apple and Android were developing their revolutionary respective operating software, iOS, and Android. An age-old product that has been developed for decades can easily be replaced by a more innovative one in a few years. Modern businesses have an environmental debt, especially the largest and most profitable ones. Your email address will not be published. Abstract. Its important to take action to prevent it from affecting your bottom line. After all, most of us old enough to remember the days before smartphones probably had a Nokia phone at some stage. People stop by Starbucks in the morning to drink coffee but the job theyre getting done is filling their stomach. What is Marketing Myopia? Causes, Fixes, and Examples Recently, the company has been able to get a handle on some of its spending and reduce its cost to produce their products. You ask your existing and potential customers a series of questions about your products and services to better understand how theyre using it and how they feel about it. Not listening to your customers' suggestions, requests, or feedback and, as a consequence, not improving your products or services, will gradually cause your business to develop marketing myopia. Curry 1 shoes had sold out and faced with the possibility of being able to sell the shoes out again; executives decided to overproduce the product. 1. -confusion between promotions and marketing. Let's now look at some modern examples of marketing myopia to put Levitt's cautionary tale into perspective. They controlled the entire value chain from production to distribution and the competition simply couldnt stay afloat. We discussed Levitt's self-deceiving cycle earlier. 1-Nike has not a myopia plan because it has a big competitor (adidas . Under Armor exhibited signs of accepting this myth with the mass production of their Curry 2 shoes. Even when a disagreement arises, the energy produced by solving it can lead to new insights and potential profit. Let's take the television industry, for example. Flexibility is essential for any business strategy, and proactively dealing with challenges is critical. -the belief that winning absolves all other sin. This outside rivalry often comes from smaller, newer companies that focus on customers needs rather than the products themselves. Especially if your product or service does not develop according to consumers' ever-growing needs. In reality, its a mix of both. It occurred to me after reading the article that Under Armour is suffering from a case of Marketing Myopia. But its often difficult for brands to expect the same of their customers. Eventually, competition will come out of the woodworks and even though they may not be as cheap as you, they can compete on different aspects. According to the writer, businesses will do better in the end if they focus their attention on meeting customers' needs rather than on selling products. I wouldnt buy a $500+ juicing machine that didnt juice fruit, but if I did, my son would be the first one to squeeze the things by hand when I wasnt looking. The barrier to entry into this market is high due to the steep research and development costs that are required. EMPACT PARTNERS O, You've successfully subscribed to MarketSplash. Take a close look at what your customers really need and what they might in years to come. Marketing myopia occurs when we focus more on the benefits and characteristics of the product and leave aside the needs and interests of the client and in many cases the environment. Learn how to communicate with your customersstrategically. Deighton says that the concept of industries has also been challenged over the last decade or so. People who apply technology to ad targeting dont necessarily think they are in a particular industry. Levitt used the railway industry as an excellent example of marketing myopia. Customer development makes sure youre always abreast of the wants and needs of your customers. Their strategy was not just to make clothes for athletes, but to make clothes that focused on improving their performance. Theyll reach out, complain on social media, and a few will leave. Phillips' example is one of green marketing myopia - when companies put too much emphasis on the environmental design of a product without considering whether it will work for consumers or not. With this kind of connection, a small business can be in-tune with its customers developing needs, even when a crisis like the COVID-19 pandemic hits. The following section will detail how you can avoid marketing myopia. For years, Kodak was the leading name in photography. Seeing what the other team is up to is a common tactic in marketing, but monitoring it through the lens of marketing myopia will upgrade your detective work. Published: Under Armours revenue growth is relatively stagnant. What Is Marketing Myopia? The Definition, With Examples - MarketSplash You have probably heard the saying, a rising tide lifts all ships. That saying applies to Myth 1. 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. Another cause of marketing myopia is the extreme arrogance that some . The company has lost sight of what business they are really in. Any marketer is obligated to be concerned with programs, tactics, campaigns, etc. Give an example of marketing myopia that you have seen. As quoted in Oxford dictionary, marketing myopia is - "A failure to define an organization's purpose in terms of its function from the consumers' point of view. You should keep marketing even after a successful product launch. Avoiding marketing myopia takes some work and additional research. Examples of Marketing Myopia Kodak There was a time when Kodak's cameras were at the peak of the market, they kept on producing the same types of cameras over the years. At first, you did it with horses. The reason why marketing myopia affects businesses is that they lose touch with their customers. Only a production-oriented publisher would defend the form of delivery over the value of the experience it delivers., There are, of course, contemporary companies that are taking Levitts advice to heart. Now, Shiseido execs had an intimate viewpoint for observing and imitating the trendiest French icons of the time. So, how did a business that dominated 50% of the United States' home rental market crumble in such a dramatic fashion? But what about your long-term plan? The Japanese cosmetics brands competitors were gaining more consumer loyalty thanks to their exclusive perfume products. (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 When the company was first founded, it marketed its products exclusively to men. These Parisian chains, along with a new Gien-based production line, propelled Shiseido out of its rut. Webvan tried to pioneer online grocery delivery and was valued at over a billion dollars with 4,500 employees. Some industries might better be described as unstable than fluid, however. While these causes of marketing myopia can be seen in the recent past, businesses should still heed Levitt's advice in the 2020s. Every year, a large majority of product launches fail. Instead, he was all about provoking people to think differently. In fact, Deighton still uses the concept frequently when he introduces what marketing is to business school students. That is not to say that Nokia did not have its own operating system, called Symbian. Sadly, others continued to pump their chunky television sets and faded into obscurity. A company's relevance is dependent on its ability to meet consumer needs on an ongoing basis. . The COVID-19 pandemic has been a difficult time for business. While the digital age has transformed many age-old human industries and utilities, the publishing industry has a few blocks that need to be overcome. Another one of IBM's fascinating services is the IBM Interactive Experience (IBM iX), which is the company's consulting branch. An example of competition is Google and DuckDuckGo. Earn badges to share on LinkedIn and your resume. This can happen when businesses focus too much on their own products and services and not enough on what customers are actually looking for. As individuals, we know our wants and needs change as we grow. Fast-forward to the mid-2000s, Netflix surpassed Blockbuster as lord of the rental market with a 36% share. Important disclosure: we're proud affiliates of some tools mentioned in this guide. Hilariously, Levitt regarded consumers as stupid and shortsighted. All rights reserved. This can happen when businesses believe they already know everything they need to know about their customers and the marketplace. Ten years ago, this wasnt a major concern for everyday consumers. Under Armour has clashed with its brand ambassador Steph Curry and has been portrayed in a negative light due to its poor corporate culture. While we aren't sure who hurt Levitt, he didn't seem to have the highest opinion of consumers. It became a global industry leader. A company like STMicroelectronics honed in on Western Digital and Seagate to create tactical partnerships. What does this look like? Welcome back! The article stated that three former Under Armour executives said that decisions around products were often driven by instinct, rather than consumer analysis of the market. More importantly, Ill share a way to move beyond marketing myopia and build what your customers love to achieve lasting success. He suggests that its time for publishers to ask Levitts central question: What business are we really in? We're committed to your privacy. The execs patted Sasson on the head and told him to keep his creation to himself. Thats not to say it doesnt have its limits. For more information, check out our, What Marketing Myopia Is & Why Every Brand Should Avoid It [+Examples]. But by 2009, the company had filed for bankruptcy. Levitt's business theory focused on solving the consumers' needs with a big-picture business strategy. Kodak is another example of a company that fell victim to marketing myopia. And while customers might be the engine that drives this selling machine, you should always attend to your stakeholders' needs too. Ensure that you are all on the same page regarding objectives. The company was so focused on its existing business model that it failed to adapt to the changing marketplace. The reality is that marketing myopia can eventually cause your business to fail. It was innovation in the wrong direction. What went wrong? As a result of this apparent series of wins, managers can become lazily satisfied. The better you understand your target audience, the more apparent their needs will become. Access more than 40 courses trusted by Fortune 500 companies. Many businesses have had to close their doors because they were, without their knowledge, practicing marketing myopia. But while many companies will try to put a green spin on their products, this kind of sustainability doesn't always impress consumers. 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. Where blogging was 10 years ago podcasting is now. In it, Theodore Levitt, a Harvard Business School Professor, introduced the now-famous question, What business are you really in?. Free and premium plans, Content management software. I talked with John Deighton, a professor at Harvard Business School and an authority on consumer behavior and marketing, to better understand this classic concept, its origins, and its relevance to organizations today. Its not always Western companies that look to the East for inspiration, however, as was the case of the Japanese skin care products business, Shiseido. Over time, it compounds. The Vega Round Brush might be one of the most popular hairbrushes on the market, but that doesn't stop people from buying Shaun Pulfrey's Tangle Teezer. How one man managed to set an indisputable maxim in 1960 that still stands true today is phenomenal. Subscribe to be notified of new content on, Enjoying The Clearest Marketing Vision Possible, New To Marketing? As Deighton explains. Marketing myopia is a marketing failure of not giving attention towards the needs and demands of consumers, in fact fulfilling the requirements of a firm of selling services or products . Myth 3: We can protect ourselves through mass production. Either you bought what it produced or you didnt. - The belief that there is no competitive substitute for the industry's major product. What Is Myopic Marketing? (With Definition and Marketing Tips) They were all the rage a few years ago. Each year, a tragic number of product launches fold. What is Marketing Myopia? Definition, Causes & Examples The phrase was coined in 1960 by Theodore C. Levitt. Marketing Myopia Examples In Today's World - The Stock Dork Stock Change is a dynamic factor. The primary product in the sports apparel industry is athletic wear. Associating yourself with relevant research organizations and universities opens up whole branches of essential knowledge that would otherwise be closed off. For more information, read our affiliate disclosure. Finally, we will examine some growth opportunities to provide your business with the clearest commercial vision possible. Sport Sponsorship Chapter 1 Flashcards | Quizlet If theres a better or more convenient way to do that same job then theyll ignore Starbucks. The transportation industry was soon flooded with air travel and other more convenient forms of public transportation. Given that Levitt coined the term back in 1960, you might be wondering whether marketers have a different understanding of marketing myopia. The firm is not able to adapt to the highly dynamic market where consumer needs & wants are changing frequently. As long as we have the ability to make decisions and change our minds, no product will last forever. At one stage, Shiseido discovered that its market share was depleting. That mentality is what leads to marketing myopia. Except that it didn't join the Google gang as you might have expected. Marketing Myopia Examples. 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. Understand Marketing Myopia by Theodore Levitt as part of your marketing strategy. If he is unable to do this, Under Armour will experience the same fate as the railroad industry and other businesses that suffered from Marketing Myopia. Netflix simply made Blockbuster's services obsolete. But what the railroad bigwigs didn't realize was that they weren't in the railway industry, but the transportation one. EarthLights didn't screw into most lamp sockets, and they cost $15 each. A more relevant term might be ecosystem rather than industry. Some of the failure is likely attributable to the fact that many company leaders, including executives, have whats called marketing myopiaa nearsighted focus on selling products and services, rather than seeing the big picture of what consumers really want. Marketing Myopia Overview & Examples - Study.com Then there is the consumers' present expectation of a written piece. As the term suggests, marketing myopia is a lack of marketing foresight. Let's look at some real-life examples of marketing myopia you might recognize. You can do this through surveys, but a better way would be to have personal connections. However, today, sustainability is a major selling point for consumers and impacts their purchasing decisions. In 2004, Nokia's sales grew by 25 percent to 1.5 billion euros ($2 billion). There are many reasons. Did it believe no one would ever try to squeeze the packs by hand? It felt it was untouchable and its marketing myopia combined with the public outcry was its downfall. 1979. which of the following is not a symptom of marketing myopia? As the urban world began to develop, trains stopped being the primary mode of transport, and the railway business suffered greatly. Almost overnight, the bubble burst and billions of dollars in value were wiped out. Entertaining and motivating original stories to help move your visions forward. Marketing myopia might have a rather broad definition, but you will find that its application has precise results in your marketing practices. Levitt believed that executives couldnt predict the futureand shouldnt try. They are known for their work ethic, scrappiness and resourcefulness. Learn how your comment data is processed. Copyright 2018-2020, KyLeads. 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. Optimize for the most engaged users, not the largest group, Ask open-ended questions that lead your survey takers, Dont put too much explanatory text or youll risk leading your customers. In the 20s women were required to wear skirts that were a certain length. What causes marketing myopia in the first place, Look at and understand their jobs to be done, Marketing Myopia Frequently Asked Questions (FAQ). Before there were cars, if you asked someone what they needed to get from point A to point B with more comfort and speed, they wouldve told you to breed faster horses. Sports Marketing 12:30 Flashcards | Quizlet - The belief that growth is assured by an expanding and more affluent population. I suffer from a condition known as myopia. Luckily, there is a cure for marketing myopia. Now, your customers want planes. The space for personal connections is one of the advantages of having a small to medium-sized customer base, after all. But this kind of daring innovation had died with Eastman, as Kodak would not budge. This cost-cutting selling point, coupled with packaging proudly displaying Energy Star stickers, resulted in a 12% sale boost for Phillips. The railway industry once believed that people would always rely on trains to get from A to B. But by 2009, the company had filed for bankruptcy. 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. 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. There are many but if you allow it to continue unchecked then the only result is going out of business because youre no longer meeting the customers needs. When Sony introduced its digital cameras in the market, Sony's cameras were a huge success. Take a look at your product or service's descriptions in your current marketing. The ads they use are uninspired (to put it lightly). After a while, you started to do it with trains. Its an intermediate step between interacting with their brand and becoming a customer. Take 2020 for instance - when the pandemic started in March, brands were forced to pivot their marketing strategies, and in some cases, their entire business models. Some happen over time. The Ultimate Guide to Marketing Myopia | Cleverism The past doesnt dictate the future. Lets say you used to solve the need of getting from point A to point B. The heart of the article, according to Deighton, is Levitts argument that companies are too focused on producing goods or services and dont spend enough time understanding what customers want or need. You could efficiently address your customers' related needs, as well as the ones that your products or services do. Companies like Nokia, Kodak, and Blockbusters believed that their products would always be desirable. The phrase was coined in 1960 by Theodore C. Levitt. Some examples of companies that have avoided marketing myopia are: Apple, Amazon, and Netflix. You might struggle to find a business disaster as cringeworthy as Kodak's one. The perfect example of this is Blockbuster. The mystery wouldve been solved and millions of dollars saved. Indeed, many countries are beginning to ease their lockdown restrictions, and life seems to be slowly returning to normal. Even if theres no competition, continually innovate so when you do encounter competitors, youll be lightyears ahead of them. The need for something new and original is a very real one. For example, railway companies that define their markets in terms of trains, rather than transportation, fail to recognize the challenge of competition from cars, airlines, and . Generally, this myopic mindset would transpire into the obsolescence of oil. -Need fan awareness, social media must be at a premium. Then, you can reissue an optimized product or service in your next launch. Recall the times when you had to stuff a box of paper business cards in your car. Chapter 1: The Special Nature of Sport Marketing by Erika Vumback - Prezi Those that have yet to make the online transition might find that the new information age leaves them behind. We must focus on them and their needs. Remember that selling is a well-oiled machine made of many nuts and bolts. For example: the New York Lizards encouraged fan engagement by requesting fans post photos of . What are four examples. If you dont keep an eye on the pulse of your industry and where people are headed, youll be left behind. You can then list these companies strengths and weaknesses. A once-successful company may have been part of a former 'growth industry,' but it eventually became redundant or even failed due to the business owner's marketing myopia.