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Marketing Management 2.

Marketing Management 2. Ted Levitt: Marketing Myopia. The Future according to Chambers and Grove. John Chambers (Cisco) Everything changes, so managers and firms must change too Technological Revolution

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Marketing Management 2.

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  1. Marketing Management 2. Ted Levitt: Marketing Myopia

  2. The Future according to Chambers and Grove John Chambers (Cisco) • Everything changes, so managers and firms must change too • Technological Revolution • Globalization: flexible manufacturing, educated (skilled) work force, supportive governments • Internet: every firm must incorporate it for survival • Competitiveness through Speed (flexibility), Human Talent, and Branding Andy Grove (Intel) • Information society minimizes competitive advantages • Competitiveness through human talent, systematic teamwork and satisfied employees

  3. Theodore (Ted) Levitt • Managers are often myopic (shortsighted) • It means, their brands, divisions, firms, or even whole industries became obsolete • Levitt thinks that top managers should be blamed for any strategic failure

  4. Myopia: Shadow of Obsolescence Every industry starts out as a growth industry Dry cleaning; Electric utilities; Grocery stores Need for strategic vision at least to follow changes Wrong beliefs:

  5. Myopia:The Population Myth Growth is assured by a growing population of customers? Is there a competitive substitute product out there?

  6. Myopia: Production PressuresWhat Ford put first: • Reducing the Price because no costs should be considered as “fixed” • It pressures employees to keep costs down • Expanding Production • Improving the Product

  7. Myopia:Creative Destruction The shadow of obsolescence and the population myth threatens every industry How to be competitive in the long-run? What does Microsoft do? Managers will face decisions like eliminating existing products, brands, divisions in order to develop (create) new ones

  8. Myopia:Dangers of R&D Paying too much attention to R&D? High-tech products: management becomes top-heavy with engineers Selective bias: products themselves become the primary focus in marketing Solutions recommended:

  9. Strategic Terms Strategy: developing and using available resources to accomplish company’s goals in a competitive arena Strategic Marketing Plan: a document describing strategic objectives and the ways to achieve them in terms of competitive activities • Mission: definition of business(es) the company operates in (“we serve the health-conscious food customers”) • Vision: the desired image of the company in the mind of its employees (“we want to be the best”) • Positioning: the desired image of the company’s products / services / brands in the mind of the targeted customers

  10. Fun, Canadian, and “off-the-wall” WestJet's mission and vision • There is something special about WestJet's culture.It's a company with a unique corporate spirit...a close knit family that's building something legendary...and in the process changing the world. • Our mission: To enrich the lives of everyone in WestJet's worldby providing safe, friendly, affordable air travel. • Our vision: WestJet will be the leading low-fare airline that:              People want to work with...             Customers want to fly with...             and Shareholders want to invest with.

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