“Marketing Myopia” is a term coined by the economist and author, Theodore Levitt.
The idea is that the failure of industries is not due to market saturation, but because of short-sightedness on the part of management.
A company’s priority is not to sell a product, but to provide a solution to their customers problems.
Look at the railroad industry.
What was once a highly successful industry is now nowhere near its former glory, not because passenger and cargo transportation declined, but because the industry failed to fulfil its’ customers’ needs.
Instead of branching out into automobiles and planes, they let other companies take their customers from them.
What management never realised is that they weren’t in the railroad industry to begin with, they were in the transportation industry.
The key to growth is to make products that fulfil the needs of the customer, not trying to refine a singular product.
You can have the newest technologies, skilled employees, and a large customer base, but if management has no vision for the future, none of that will matter.
T vision and goals of a company give its employees direction.
That direction is fundamental to the success of a company.
Another good example is Blackberry. What was once a celebrated brand is now struggling in the market because their R&D was devoted to business prospects rather than customer needs and satisfaction.
If you or your company doesn’t devote enough resources to tracking consumer preferences, the result will be an unawareness of customer trends and changing taste.
“Marketing Myopia” can be avoided if you have a long-term vision and a customer-centric product development process.
Watch this video below for more information.