Business is founded on the principle of offering a product or service in exchange for money. Companies have been doing this for years successfully, and with time and the increase in competition business, people realized a need to differentiate themselves from the opposition. Marketing according to the American Association is defined as, “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large,” (American Marketing Association, 2013) 2013). It simply everything that a business does to influence their customer to choose them over the competition. The customer is the focus of marketing, and their needs are viewed are crucial.
The Marketing Concept “is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.” The concept came about after the end of World War II when individuals begun to have disposable income and, therefore, could afford to choose between competing products. It soon became apparent that a product or service needed to set itself apart for a consumer to want to purchase it. (Guterman, 2011). The concept emphasizes a strong customer focus, amalgamation of all business activities and raising of profits. Therefore, from concept to production, placement, price, and promotion all conform to what the customer needs are. This often requires that all levels of the business fall in line with what the customer expects. The belief is that this laser focus will increase chances of higher profits.
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What then happens to companies that do not follow the marketing concept? This is where marketing myopia comes in. Marketing myopia is referred to as “a short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products regarding the customer needs and wants. It fails to see and adjust to the rapid changes in the markets.” The originator of this concept was Mr. Theodore C. Levitt who discussed it in his paper Marketing Myopia in the Harvard Business Review. Mr. Levitt expounds on this concept by explaining that companies need to develop a bigger picture view by answering the all-important question “What business are you in?” (Guterman, 2011). A great example is that of a newspaper that sees itself not as a source of information and entertainment but simply as a channel for the news. The latter allows for strategic planning that creates more channels other than print to inform and entertain such as digital. The relationship between the marketing concept and marketing myopia is one of the opposites. The marketing concept urges the focus on customer needs while marketing myopia focuses on the company’s needs. However, the years since the marketing concept came to be have since shown that customer needs sustain and grow companies in the long term.
The case of Kodak is one that shows just how dangerous marketing myopia is. Kodak in its heyday was the giant of the US film market with 90% market share. Kodak at the time focused on its cameras and films (Internet Centre for Management and Business Administration, 2010). However, when one of their engineers developed a digital camera in 1975 they refused to focus on this disruptive technology and instead preferred to continue focusing on its own needs; ruling the film business. They did not answer the question what business are you in? Kodak has gone on to play catch up over the years and still currently operates at a loss (Dan, 2012). Companies must learn that to define their business as the problem they solve for the customer and not the product they produce.
References
American Marketing Association, (2013) Definition of Marketing retrieved from https://www.ama.org/AboutAMA/Pages/Definition-of-marketing.aspx
Dan A., (2012) Kodak Failed By Asking The Wrong Marketing Question retrieved from https://www.forbes.com/sites/avidan/2012/01/23/kodak-failed-by-asking-the-wrong-marketing-question/#730ec8e23d47
Guterman J., (2011) Marketing Myopia 50-Plus Years On, retrieved from https://hbr.org/2011/07/marketing-myopia-50-years-on
Internet Centre for Management and Business Administration, (2010) The Marketing Concept retrieved from http://www.netmba.com/marketing/concept/
