Marketing Myopia and article critiques Essay Example | Topics and Well Written Essays - 1000 words

Marketing Myopia and article critiques - Essay Example Levitt spoke of the ‘Error of Analysis’ whereby, the company defines its scope inaccurately and is unable to grow because it has restricted itself. Companies tend to stop growing, not because of fall in demand or increased competition, but because they were mismanaged and failed to realize their own potential and the opportunities that would have come with it had they managed themselves properly and expanded their horizons, instead of having a very myopic view about their business. He gives the example of the railway, which has steadily declined over the years as other vehicles become mainstream transport. This failure is not because the demand for rail travel declined, it is because they had a â€Å"product-oriented instead of customer-oriented† approach (Levitt, 1960). In the same vein, the TV business is bigger than the film business ever was, just because Hollywood restricted itself to movies by categorizing itself as being in the film business and not the ent ertainment business and massively restricting its horizons. To explain the reverse side of the argument, TV is a success story because it has not restricted itself to one category. ... Levitt talks of the ‘Shadow of Obsolescence’ whereby companies stop growing once their products lose the sparkle, this often happens when a specific feature of their product that was supposed to have been bringing in the demand, becomes outdated and easily substituted by competition with time. He gives the example of the dry cleaning industry. Once thriving because it provided an effective way to clean wool garments, the industry is now dwindling as synthetic fibers replace wool, ones which are easier to clean and the dry cleaning industry becomes obsolete due to innovative products such as automatic washing machines. Another mistake is the ‘Population Myth’ whereby companies assume that a growing population is synonymous with a growing market demand and the ‘Idea of Indispensability’ whereby companies think they are safe from competition because their product is irreplaceable. This lulls them into a false sense of security and they end up funct ioning under a complacent strategy. An example of this scenario is the petroleum industry; due to its elaborate success throughout its history the petroleum industry has become complacent in its strategy and assumes safely that as long as the world’s population keeps growing, its customer base will forever increase. Complacency however, makes the industry myopic to the fact that many people are now becoming environment conscious and are interested in adopting alternative forms of energy that do not pollute, unlike petroleum products. Another mistake is due to ‘Production Pressures’, since companies are so engrossed in meeting production quota deadlines they lose focus of their