Marketing Myopia

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Marketing Myopia

• Presented By
• Ngan Nguyen
• Wangjung Lee
• Zhouyang Lu

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Theodore Levitt

• Author of the article
• Professor at the Harvard
• Published six books
• Died at 81

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Introduction

• Marketing Myopia
• Growth Industry
• The main mission of the business
• What causes growth industry slow down?
• Who is in charge of the failure?

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Example of failure companies

• Railroad Company
• Product Oriented VS. Customer Oriented
• Hollywood

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Successful companies

• DuPonts
• Cornings
• Kaiser Aluminum Chemical
• Reynolds Metal Company
• Why?

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Shadow of Obsolescence

• No Substitute Industry?
• Dry Cleaning
• Electric Utilities
• Grocery Stores

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Self Deceiving Cycle

• Population myth
• Belief in no competition
• Mass production
• Decline unit costs
• Belief in product orientation

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Population Myth

• Assurance of profits by expanding population
• Thinking Moment
• Example of John D. Rockefeller
• Tetraethyl lead

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Petroleum Company

• What is the industrys effort?
• The idea of Indispensability
• Uncertain Future

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Production Pressure

• Mass Production
• Great pressure to move the product
• Marketing
• Needs of buyers customer
  satisfaction
• Lag in Detroit
• Ford
• 500 cars
• Product Provincialism
• Oil Companies
• Creative Destruction

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Dangers of RD

• Marketing Shortchanged
• Electronic companies
• Too much attention to RD
• Heavy emphasis on technical research
• Guaranteed market of military subsidies
• Stepchild Treatment
• No dedicated attention to marketing
• Beginning End
• Delivery of customer satisfaction
• Creating things
• Finding raw materials

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Conclusion

• Visceral Feel of Greatness
• Managements
• Provide customer-creating value satisfaction
• Make the whole organization aware of that idea
• Know where to go

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Retrospective Commentary

• Common Consequence
• Strategic Consequence

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Policy results of Marketing Myopia

• RD departments
• Upper management
• Finance departments
• Trained salesmen

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A Reflection of A Companys Business

• More impact in industrial-products companies than
  consumer-product companies
• Capital intensive business
• Product orientation

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Not a prescription, but a manifesto

• Focus more on the inner orbit of business policy
• A way of thinking
• Supervisors are responsible for this manifesto

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Discussion Questions

• 1. There is no such thing as growth industry,
  what we have is growth opportunities---explain.
• 2. What is creative destruction? How does it
  relate to the Strategy of a company?
• 3. 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?