An approach to marketing known as Marketing Myopia was first described in an article by Theodore Levitt in the Harvard Business Review. It is marked by short-sightedness and inwardness and focuses on fulfilling company needs rather than marketing from a customer’s perspective.
Marketing myopia manifests itself in businesses when their primary focus is on sales rather than marketing or customer needs. A high percentage of new product launches fail to meet expectations every year. The actual percentage is subject to debate-some believe it to be 75 percent, while others believe it to be 95 percent.
The fact remains that much time and effort is spent on marketing products that will be obsolete in a year. What is the reason for this? Many business failures can be explained by the fact that many executives suffer from marketing myopia – an inability to see the big picture of what consumers want.
The concept of marketing myopia means ignoring the needs of consumers to grow your business. You may experience marketing blind spots if you do not completely understand marketing myopia.
Whether you are a business owner or a marketing professional, becoming more familiar with efficient marketing methods will help you succeed. A successful marketing strategy can assist a company in attracting and retaining customers, selling items, and growing for a long time.
Marketing myopia is a condition that can emerge when a firm concentrates on short-term growth rather than long-term success and growth. This blog post aims to clarify what marketing myopia is, why it occurs, and how to avoid it so you can create a marketing plan focused on the future.
What Is Marketing Myopia?
Marketing Myopia is when an organization adopts a narrow-minded marketing strategy and focuses primarily on one aspect of various marketing traits rather than all.
When a company concentrates on producing high-quality items for clients unconcerned about quality and is just concerned with pricing, this is a classic case of marketing myopia.
“marketing myopia” was originally used in a study published in the Harvard Business Review in 1960 by Theodor Levitt. The gist of Levitt’s speech was that many organizations suffer from serious problems, notably the inability to maintain profitable operations.
Market myopia refers to a business’s need to future-proof the usefulness of its products and services rather than only focusing on the sale of those items today.
Marketing myopia is the failure and narrow-minded approach to marketing that focuses on certain attributes of a product or service to the detriment of long-term objectives such as product quality, customer demand, and satisfaction.
Marketing myopia occurs when a company concentrates all its efforts on short-term marketing initiatives. Focusing on long-term growth instead of short-term gains is wise since this can result in decreased performance in the long run.
Businesses may be able to better respond to customers’ needs by anticipating future market changes if they focus on the future.
Where Did Marketing Myopia Concept Originate?
According to the late Theodore Levitt, a former Harvard Business School marketing professor, the “Marketing Myopia” word was first used in a 1960 paper (republished in 2004).
According to Deighton, Levitt’s thesis is the “heart of the piece,” which is that businesses focus too much on producing products or services and aren’t spending enough time addressing the needs of consumers.
Consequently, he urged executives to change their mindset from a production-oriented to a consumer-oriented one.”
In the words of Levitt, “People don’t want a quarter-inch drill,” he would tell his students. A quarter-inch hole is what they’re after!”
Deighton states, “The genius of the original essay was that it was so easy to be myopic about marketing.”
There are a variety of marketing strategies, methods, campaigns, and other considerations.
Thus, the clock is never still long enough to answer the question, ‘Why do you do what you do?”
Thus, it becomes too easy to lose sight of the big picture,” Deighton suggests. It also served as a timely reminder to chief executive officers that marketing must be taken into account: “[Levitt] reminds the organization’s leader that the company is in business because its consumers are.” Therefore, marketing must be taken into account,” he argues.
According to Deighton, the concept of marketing myopia is “still quite applicable” today, “in part because the original concept wasn’t prescriptive.” Levitt did not provide a list of “10 ways to minimize marketing myopia.”
Rather, Deighton wanted people to think about marketing in new ways.” In reality, Deighton does refer to the concept, and he does so frequently when explaining what marketing is to business school students.
Furthermore, you don’t have to look very far to find organizations or sectors currently suffering from this ailment today.
Deighton cites a case in point that is particularly relevant to this writer: the publishing sector. He believes that it is past time for publishers to consider themselves the key issue posed by Levitt: “What business are we truly in?”
When it comes to the word “publish,” it appears to be associated with a narrow, production-oriented perspective on the industry.
“However, what exactly are customers seeking?” He claims that they are not interested in newspapers or periodicals.
He argues that people who are more interesting than their near and dear ones can provide them with entertainment, information, and stimulation.
Only a production-oriented publisher would defend the distribution model over the valuable experiences it provides,” says the author.
Contemporary businesses are, of course, heeding Levitt’s wisdom. IBM Interactive Experience, a consultancy that combines analytics, design, and technology (and generates $2 billion in revenue), stands out as a “tried and true way to think beyond what we produce to deliver valuable communications on behalf of consumers.”
What Causes Marketing Myopia?
A company that wishes to be successful in the future must focus on its long-term goals.
Marketers who focus only on immediate results rather than ensuring the success of their clients and customers can become myopic and fall into the trap of being shortsighted and narrow-minded.
Marketing myopia sets in as a result; firms become so focused on current product strategies that they ignore the development of new ones or the adjustment of existing ones, ultimately leading to organizational sustainability being further off than before.
Marketing myopia is a common problem with marketers because they employ narrow-minded methods and become too focused on their business.
Various factors can cause marketing myopia, and the causes can differ from one organization to the next. The most common causes are the following:
Businesses assume their industry is one of growth
Building your reputation and establishing your brand does not happen overnight; rather, it takes time and hard work.
A company that becomes successful is a leader in the market’s growth for a long time afterward.
They, however, tend to believe that they own the market, which can lead them to make erroneous assumptions, for example, how likely it is that the products they manufacture would sell.
They do not emphasize building relationships with clients because they are either the leading manufacturer or the sole manufacturer in the market.
Focus on business
An organization may experience myopia or short-term success if it only focuses on product sales.
When a company manufactures a certain kind of computer and concentrates its production on that, it might miss out on new technological developments.
The inclusion of long-term growth tactics in a company’s emphasis, such as improving customer happiness, can result in longer and more effective growth.
Companies do not consider competitive substitutes.
When a corporation is the only player in the market and has no competition, they assume that things will remain the same for the foreseeable future and always be at the top.
They stop investing in their research and development to continue to improve due to this self-deceiving belief.
An entry with distinguishing characteristics captures the entire market share after a competitor enters the market.
Methods of conducting research
Launching a successful marketing campaign without conducting extensive market research is impossible.
If a corporation undertakes only a minimal amount of research, it may suffer from marketing myopia.
You may benefit from using specific research tools when performing marketing research to assist you in this regard.
Neglecting Consumer Requirements
Companies neglect to consider their customer’s needs as part of their marketing strategy.
They become so overconfident that they stop asking their customers whether our product is a good fit for them.
A new competitor disrupts the market, resulting in a difficult gap between customer expectations and what the company offers.
If the brand is marketing myopic, it will simply be abandoned as soon as possible.
Amounts of production
The decision to manufacture more goods or fewer should be based on long-term tactics rather than short-term decisions.
Myopia can occur when a company maintains a high output level while failing to react to changes in client demand.
Market conditions can change over time, and it is important to adjust production to stay competitive.
Accordingly, seasonal commodities may be in greater demand during certain times.
A company that manufactures these things may need to adjust its manufacturing plan to satisfy demand.
Advertising campaign scope
When a company concentrates exclusively on one form of marketing technique, this is known as myopia.
You can maximize the effectiveness of your campaign by using a variety of marketing methods.
Your business may benefit from social media marketing, television ads, and direct mail campaigns. You may be able to reach more clients if you plan a diversified campaign.
Digital Lifestyle Is Not Considered
Technology provides us with new products and services; it also allows us to have more leisure time and transform our way of life along with those products and services.
If marketers do not consider how customers’ lifestyles change, their products will go out of date and no longer be necessary for customers.
A customer will not purchase any product that does not meet their expectations.
Changes in the market and planning
Business changes over time, and to stay competitive, and successful companies must adapt.
It may be necessary for technology companies to develop new products as technology evolves.
The market can become myopic if a company produces the same product repeatedly. Therefore, conduct market research regularly to ensure your business grows.
How To Avoid Marketing Myopia?
Marketing myopia is the belief that organizations will do better in the long run if they concentrate on addressing the requirements of their consumers rather than attempting to sell merely things to them.
A company’s management might use various strategies to avoid market myopia.
Make sure you keep the following things in mind when developing marketing plans so that you can focus on the future and long-term growth:
Prepare Long Term Plan
Organizations can develop more effective marketing strategies by setting long-term objectives and planning for them.
It is beneficial for a marketing professional to keep track of long-term and short-term objectives.
You might set objectives for the development of new products, for instance. You might compare the results of various marketing strategies with these.
You can assist your organization in its continued growth by combining short-term objectives with long-term objectives.
Suppose you also set a longer-term customer goal and a short-term product target, acquiring 100,000 new customers in five years.
It is possible to produce more new sales by concentrating on acquiring new consumers over a longer length of time.
Ensure that your strategy includes the customer
The customer must be at the center of the planning process for future successful marketing campaigns.
When developing products and marketing tactics from the customer’s standpoint, make sure to think about products and marketing tactics.
You may also want to solicit feedback from your customers. The long-term success of businesses can be strengthened if they concentrate on developing client relationships and increasing client satisfaction.
You can help to prevent marketing myopia in the future by conducting thorough market research.
Before releasing new items, you should conduct market research to establish who your target consumers are.
This might assist you in refining and improving the product before its release. Additionally, consider conducting research following the product introduction.
Markets and audiences might shift over time, making it necessary to do research regularly and frequently to detect any shifts.
Promote your products
Companies trying to build long-term growth will continue to promote their current products.
If you continue to promote your items, you may be able to expand your audience and your company’s reach.
By reminding people of your goods, you may also be able to help build your brand’s reputation.
You and your marketing team can review the marketing campaign, and any necessary changes can be made.
Give your customers a variety.
To avoid myopia, you should offer your customers a wide variety of products and services.
Your company may want to expand its product line if you offer t-shirts, such as jeans or shoes.
This might assist you in attracting new customers as well as encouraging your existing clients to purchase other things.
You can also include variations in your marketing plan to broaden the scope of your target group.
Example: If your company’s primary marketing strategy is to contact clients through social media, you can incorporate television advertising to reach people who do not utilize social media.
You may assist your firm in further growth by bringing on more clients.
Experiment with different techniques
Experimenting with different strategies is a critical component in achieving long-term success.
Staying competitive may require developing new products or marketing efforts as the market shifts.
To find out how new strategies perform, you might want to conduct market testing.
If you are trying a new marketing strategy, you may want to test a modest product launch with a small group of people.
Revise and refine
You might want to consider reviewing and refining your marketing objectives and tactics. How you do this depends on your industry and how large your business is.
You can do this once a year or once every three months. Make new goals each week and schedule a time to review yours. Look for areas that may be improved, and keep an eye out for opportunities to expand.
Stay up-to-date with market trends.
It is possible that as the marketplace evolves, so will client demands. As technology advances, businesses may need to provide customers with extra services to remain competitive.
Make sure you stay up to date by subscribing to marketing news and conducting systematic market research.
You can design marketing strategies and products that cater to the needs and desires of your clients by staying on top of the latest trends and developments.
What Are The Examples of Marketing Myopia?
It is critical to prevent marketing myopia at all costs. A company that focuses on only one facet of its operations may lose sight of the wider picture and fail in other areas, ultimately determining if it becomes a success or a failure.
Here are a few examples of businesses that were affected by this issue:
There was a time when Nokia ruled the feature phone market.
Nevertheless, as smartphones took off and people demanded more from them than just phone calls, they flocked to the iPhone or Android platforms rather than to the company’s brick-style phones, which seemed like relics from an era before touch-screen technology.
Nokia Corporation is an example of marketing myopia. The company was primarily focused on meeting the demands of clients today, but it failed to anticipate future customer needs.
When phone firms such as Samsung and Apple introduced technology that enabled phones to be equipped with GPS, they fundamentally altered the way users saw mobile phones.
The company would not have been left behind due to a lack of innovation if it had paid attention to this shift and would have become the world’s leading phone manufacturer.
Kodak was previously the industry leader in cameras, but they chose to disregard a crucial technological innovation that would have a big impact on their company’s future.
There was no way for the corporation to anticipate the dramatic impact that digital photography would have on sales and market share.
It was more important to sell things to customers than to address customers’ needs who were adopting new emerging technology.
It is critical to pay attention to and anticipate the needs of consumers to build a long-term business relationship.
In the case study of Nokia, the company failed despite having superior products due to failure to keep pace with changing customer behaviors.
The company experienced similar difficulties when digital cameras first became popular because it failed to innovate or enable others to innovate on top of its existing product line.
Marketing Myopia reminds the dangers that could result if a firm fails to pay close attention to customer wants and industry developments.
The business should look to the future instead of concentrating on selling the product it is currently manufacturing by identifying and filling a customer need gap while examining potential future needs that could lead to lucrative business opportunities.
What are the risks of marketing myopia?
Marketing myopia, also known as the marketing trap, is the tendency for businesses to focus only on short-term marketing goals rather than ensuring they are meeting long-term client requirements.
A marketer who suffers from Marketing Myopia or Marketing Trap often loses clients because they fail to recognize that customer needs change over time, and in many cases, they are not familiar with the needs and wishes of their customers.
Final Thoughts on Marketing Myopia
Hopefully, this post has helped you gain some fresh insights into the dangers of Marketing Myopia.
Businesses could focus on filling existing customer needs gaps and researching potential future needs instead of wasting money on complex technologies that may or may not succeed in uncovering lucrative business opportunities.
You would do well to identify customer demands today and then consider what they will be tomorrow and how they may evolve. By devising a marketing foresight strategy, you will achieve this goal effectively.
Marketing myopia has actual consequences for your company’s bottom line. If you are not conscious of what is happening, a steady deterioration might occur right before your eyes.
Knowing it exists, on the other hand, is not enough. You must take immediate action to keep it from negatively impacting your business’s financial performance.