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Marketing Myopia by Theodore Levitt. Group No.8: Alex Elwood Nikolas Foster Blake Overall Shaelee Pittenger Lorelei Wilson. What is Myopia. Nearsightedness--not inherited. It can be prevented.

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Marketing myopia by theodore levitt

Marketing Myopiaby Theodore Levitt

Group No.8:

Alex Elwood

Nikolas Foster

Blake Overall

Shaelee Pittenger

Lorelei Wilson


What is myopia
What is Myopia

  • Nearsightedness--not inherited. It can be prevented.

  • Short sighted and inward looking approach to marketing that focuses on the needs of the firm instead of defining the firm and its products in terms of the customers' needs and wants.

  • Read more: http://www.businessdictionary.com/definition/marketing-myopia.html#ixzz0yyuoieyC


Theodore levitt
Theodore Levitt

Started a newspaper with Erma Bombeck in elementary school

Served in World War II

After the war, Ted was a reporter and sportswriter for the Dayton Journal Herald

Received his masters in economics from Ohio State

Worked briefly as a consultant in the oil industry

Began teaching at Harvard in 1959

Wrote Marketing Myopia in 1960, most reprints of any Harvard Business Review article, 900,000


Levitt cont
Levitt cont.

  • Wrote 25 articles for the Harvard Business Review

  • Authored 8 books on Marketing

  • 1983 wrote “Globalization of Markets” – coined the word globalization

  • In 1985 became the editor of the Harvard Business Review, expanded it’s readership beyond an academic journal into a mass market management magazine

  • Won many awards

  • “What business are you really in?” – Marketing Myopia

  • Approach was not to get approval in research, but to have “important people in important companies” (his phrase) to take his ideas and go with them


“There is no such thing as a growth industry, what we have is growth opportunities.”

-Theodore Levitt


Guarantee a self deceiving cycle
Guarantee a Self-Deceiving Cycle is growth opportunities.”

  • Believe growth is guaranteed by an expanding population

  • Believe there is no competitive substitutes

  • Have too much faith in mass production

  • Preoccupation with a product: focus on product instead of customer


Assured growth by expansion
Assured Growth by Expansion is growth opportunities.”

  • Belief that increases in population and affluence ensure growth

  • Lack of innovation – A common characteristic

    • Companies focus on efficiency, not innovation

  • Petroleum industry

    • A prime example of this fallacy

    • Reinforces Levitt’s caution of myopically defining one’s industry


No threat of obsolescence
No Threat of Obsolescence is growth opportunities.”

  • The fallacy of believing competitive substitutes don’t exist

  • Petroleum industry

    • A history of obsolete products due to competitive substitutes

      • Kerosene Lamp

      • Kerosene Space Heater


Mass production
Mass Production is growth opportunities.”

  • Lower product’s unit costs as output increases

  • Focus on production, neglect marketing

  • Selling is not marketing

  • Focus on company’s needs, not customer’s needs


Henry ford
Henry Ford is growth opportunities.”

Brilliant Marketer

Senseless Marketer

  • Created a product customer’s needed

  • Created a product customer’s could afford

  • Created production system to fit market needs

  • Refused to make cars in any other color but black


Preoccupation with product
Preoccupation with Product is growth opportunities.”

  • Industry declines instead of growing

  • Example – Oil Companies

  • Survival entails change


Creative destruction
Creative Destruction is growth opportunities.”

  • When something new eliminates something old

  • Must become innovative – reinvent business

  • Must change business strategy to survive


Marketing myopia today
Marketing Myopia Today is growth opportunities.”

  • Airline Industry

    • - Southwest Airlines vs. American Airlines

    • - Customer satisfaction low in this industry

    • - Airlines vs. Cable T.V : Tie

    • - IRS ranked higher than airlines in customer satisfaction


Marketing myopia today1
Marketing Myopia Today is growth opportunities.”

  • Technology Industry

    • More focused on the customer today than in 1960

    • Apple

    • E-commerce and E-Business ranked high in customer satisfaction report

http://www.theacsi.org/images/stories/ACSI_TREE_08_10.pdf


The pros
The Pros is growth opportunities.”

  • Provided for new thought process

  • Customer Centric

  • The concept stands the test of time

  • Marketing is not selling


The cons
The Cons is growth opportunities.”

  • Can a company realistically restructure

  • Can go outside the scope of bounded rationality (lose reality)

  • Static not dynamic

    • Does not factor for globalization

    • Ecommerce


Conclusion
Conclusion is growth opportunities.”

  • “Organizations must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it.”

Theodore Levitt


Reference
Reference is growth opportunities.”

  • Levitt, T. (1960). Marketing myopia. Harvard Business Review, 38(4), 45-56.

  • Lavelle Louise (2006). Theodore Levitt Dead at 81. Business Week. Retrieved September 10, 2010 from www.businessweek.com.

  • McDermott, Anne (2010). Customer Satisfaction-Airlines Worse than IRS, Better than Facebook. FareCompare.com. Retrieved September 8, 2010 from http://www.farecompare.com/articles/airline-industry-news/customer-satisfaction-airlines-irs-facebook/

  • Dictionary, (2010). Creative destruction.http://dictionary.reference.com/browse/creative+destruction

  • Wikipedia, (2010). Creative destruction. http://en.wikipedia.org/wiki/Creative_destruction


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