Presentation Transcript

1. Marketing Myopia

   Presented by: Elizabeth Enriquez Ronny Pigg Nga Van
2. Introduction Theodore Levitt (1925 – 2006) Professor at Harvard Business School in 1959 Marketing Myopia focusing on product- oriented instead of customer- oriented.
3. Marketing Myopia Failure companies: Railroad: in rail road business rather than in transportation business. Hollywood: in movie business rather than in the entertainment business. Successful companies: DuPonts and Cornings : they focus on the needs of customers rather than the product.
4. Shadow of Obsolescence Dry cleaning: synthetic fibers and chemical were appearing  no longer need dry cleaning. Electric utilities: solar energy, fuel cells, and other power source  threat to electric utilities. Grocery store: supermarket are doing a better job of understanding customers need than grocery stores.
5. Self-deceiving cycle Increasing population  growth of the industry No competitors can substitute their major product. Mass production  reduce unit cost. Scientific experimentation, improvement, and manufacturing cost reduction: Superior products  no competitors. “There is no such thing as a growth industry” Company must focus on the needs of customers, and solve customer’s complaints.
6. Population Myth Assured profits based on expanding population Increasing purchases? Market growth based on this assumption Limits imagination absence of problem absence of thinking
7. Petroleum Industry Trouble? Focus on efficiency rather marketing Narrowly defined industry Idea of Indispensability NO competitive substitute(s) was the idea Idea exist despite historic evidence Perils of Petroleum Patent medicine Kerosene lamps Thomas Edison Uncertain Future
8. Production Pressure Mass Production Drive to PRODUCE!!! Spectacular profit possibilities Marketing neglected Lag in Detroit Failed to reveal customer’s wants Product-oriented Ford Production genius Marketing genius Product provincialism “Creative Destruction”
9. Dangers of R&D Top-heavy engineers and scientist management Bias in favor of Research and Product Development Marketing Treated as residual activity Biased towards controllable variables Consumers are: Unpredictable Varied Fickle Stupid Shortsighted Stubborn Bothersome
10. Step Child Treatment No one interested in basic human needs Questions about customers and Markets not asked More excitement in more product then the customers Articles detailed towards production and none for marketing
11. The Beginning and End? Customer-Satisfying process viewpoint is vital Violating rules of Scientific Method Define the problem Develop hypothesizes to solve the problem Customer satisfaction not being considered as the problem Selling and Marketing are different
12. Visceral Feel of Greatness Leaders need to have vision that can produce eager followers Followers are the customers Management must not produce products but provide customer-creating value satisfactions Firm must think of “buying customers” Leader must know where they are going If a leader goes down any road, they might as well stay at home.
13. Conclusion
14. Discussion Questions “There is no such thing as growth industry, what we have is growth opportunities”---explain What is “creative destruction?” How does it relate to the Strategy of the company? Ford created a car with no custom options that was only available in black, but sold for $500. Why would he be considered “both the most brilliant and the most senseless marketer” in American History?