Theodore Levitt’s work “Marketing Myopia” shines light on how many businesses fail due to their ignorance on changing consumer needs and preferences. Companies’ management invests heavily on product development and enhancement forgetting that consumers are the real determinants of how they should run their business. Levitt cites railroads as an example of marketing myopia; the industry remained stagnant because it incorrectly defined its vision in the transport sector. In his discussion, Levitt outlined factors that contribute to the downfall of stagnation of most organizations. These are; the belief that a business’ growth is defined by the size of the population, assumption that there is no competition for the firm’s major product, investing heavily on mass production which is assumed to be cheaper, instead of focusing on marketing and consumer preferences, and lastly, over relying on scientific research which can be sometimes misleading.
Introductory marketing also features four elements of marketing mix which are Product, Place, Promotion and Price. For a business to stay competitive, the management needs to combine these four elements effectively to ensure that consumers are satisfied hence successful business. It is important not to prioritize one element over the other because they need to be equally balanced to achieve the goals of the company.
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The above concepts of marketing concepts have made me realize how complex the field of marketing is. Traditionally, marketing was all about informing consumers about certain products and persuading them to pay. This method however is too shallow for today’s competitive markets, which are characterized by economic downturn, rapid advancement of technology and globalization. The marketing environment has pushed businesses back to the drawing board; reflecting about organizational goals and policies. Normally, I assumed that any company with large customer base, cutting-edge technology and experienced workers will automatically be successful but that isn’t the case according to Levitt. The secret of corporate success lies in assessing customers’ tastes and preferences.
For instance, Iridium, a once prominent organization on Wall Street had the biggest downfall after their brilliant idea of satellite phones flopped. After investing billions of dollars in the idea, Iridium later went into bankruptcy after cellular phones flooded the market (Essays, UK, 2013). Iridium management assumed that the rising demand for information technology would automatically deliver success for their satellite phones, which were costly. They never considered future customer preference and the possibility of other entrant products that would offer even more convenient solutions. Considering the 4 Ps of marketing, Iridium had its product and place well mapped since the phones could be used anywhere in the world. They however failed on promotion and price where their overly high priced pushed clients to go for affordable cellular phones.
Another case study of marketing myopia is Model T automobile by Henry Ford, which redefined the transportation sector (Essays, UK, 2013). Riding on the success of the product’s demand, Henry started producing Model in huge quantities, but he failed to pay attention to customers’ preferences. He offered Model T cars in black because they take less time in drying. The customers however started showing interest for other colors, which Henry didn’t offer. The industry got more competitive when other manufacturers realized this gap, luring more clients while leaving Ford with less. This led to the downfall of Model T.
Despite of an increase in product demand, businesses shouldn’t be carried away by supplying the product and assume future success. Companies have mainly focused on their selling needs instead of customers’ needs. When a company prioritizes consumer needs, success is inevitable. Businesses that value consumer preferences are also less likely to be overtaken by competitors since their customized products will ensure customer loyalty while attracting more buyers. Lastly, businesses need to invest in promotion of products to inform consumers are aware about a given offering while ensuring to match the prizes with other sellers in the industry. Promotion includes personal selling, sales promotion and mass selling.
How Evolving Changes in Technology affect Consumer Power
In the past century, marketing and shopping relied on traditional channels including TV, radio, print and press to send messages to consumers about a given products. The evolution of technology has brought efficiencies in marketing through the internet with various marketing tools like Twitter, Facebook, BBM, Instagram, SnapChat, Tumblr, LinkedI, WhatsAPP, and You Tube. Studies in London and New York in 2005 and 2007 respectively revealed that a consumer is exposed to 3,500-5,000 media messages on average daily (APURIMAC.AFRICA, n.d.). With few computer/phone clicks, consumers can now analyze and select the best product they want to buy.
Consumer empowerment is likely to increase as technology advances to facilitate online shopping. In the past, buyers were captive to limited ads which gave them no chance to make sound decisions before purchasing a product (The Economist, 2005). Customers would visit stores, view products then decide to buy at the same time. With online shopping, consumers are now empowered to compare prizes, quality, designs etc from different sellers before buying a given product. This has pushed sellers to improve their services to be consumer-driven and honest, unlike in the past when companies exploited consumers with wrong information.
As online shopping increases, most companies are taking their services online. Customers can now book flights, entertainment and traveling tickets or accommodation just by a press of a button. Other businesses taking shopping online include retail, auto, telecom, and financial industries. With these, customers are allowed to rate a given company with reviews or stars, which in turn affects the company’s reputation hence its sales. As more businesses take the shopping experience online, consumer power will inevitably increase, pushing sellers to change how they offer services in order to stay competitive. A more empowered consumer will drive excellent services by businesses in future.
References
Essays, Uk. (2013, Nov). Marketing Myopia, Theodore Levitt. Retrieved from https://www.ukessays.com/essays/marketing/critique-on-marketing-myopia-marketing-essay.php?vref=1
APURIMAC.AFRICA. (n.d). The Power of the Consumer in the Future of Marketing. Retrieved fromhttp://apurimacafrica.com/2016/02/22/the-power-of-the-consumer-in-the-future-of-marketing/
The Economist. (2005, Mar, 31). Power at Last: Armed with the Internet, the Customer has finally got on Top. Retrieved from https://www.economist.com/node/3810230
