Theodore Levit’s article, “Marketing Myopia”, is the first. He denies that any industry has ever been a forever-growing industry. Although he believes that every industry was a growth industry at one time or another, they were unable to carry the title due to a variety of reasons. One reason being market saturation. Inadequate management caused industries to stop growing. They failed to recognize the need for expansion into other sectors than those they already work in. The railway only covered rail transport and didn’t cover other modes of transportation. Levit’s article lists many more examples. These industries were too customer-oriented and oriented more towards product or services than they needed to be. This was the biggest mistake. In order to maintain growth, they had to adjust their services to meet market demand. Fateful purpose Industry is not about producing goods, but customer satisfaction. Businesses will have a better chance of growing if they focus on customers’ needs and not on mass production or selling techniques. Analyzing an industry’s entire market is a mistake. Marketers need to be customer-oriented and provide service that is both helpful and profitable for long-term growth. It is important to satisfy customers by meeting their needs. Each company is at risk of becoming obsolete by market forces diversification and business environment changes.
Getting garments professionally cleaned with chemicals
This industry was the most new and service-oriented in the market. However, it is now at risk of becoming obsolete due to new inventions that make it less valuable to its customers. Customers have access to the most effective and innovative solutions for their needs.
Electric Utilities
Electric utilities industries also have to deal with the problem of dynamic changes in production and use. Electronic utilities are constantly changing and customers have become accustomed to using new, more convenient utilities. The result is that companies that are product-oriented are in danger of becoming obsolete.
Grocery Store
Groceries in our neighborhood may be forced to close due to the new superchain hypermarkets and mega-superstores. They thought they would be able to compete with the supermarkets in their area, but they were wrong. The self-deceiving cycle
This cycle is what causes total myopia in the company. This cycle is applicable to certain conditions. Four conditions are required for self-deceiving cycles. 1. The population growth is the key to growth. 2. Believe that there won’t be a substitute for major products. 3. Mass production and falling unit costs for increased output. 4. One product development is not enough. Believing that customers will bring you more business can lead to a decrease in business growth. The petroleum industry believes there are no competitors because there isn’t a substitute for oil. However, there are many refineries that have so much oil that they can pose a threat.
Myth about the Population
The population myth states that increasing the population will increase demand. However, it does not always mean that there is a greater demand for what an industry offers. Unknown reasons can lead to a new product taking over the market. The decision to stop making petrol products was wise by the petroleum industry. To avoid the decline, they expanded their reach to include crude oil products. Asking trouble to get Trouble. In other words, industry efforts have been focused on improving efficiency in getting and manufacturing its products, rather than on marketing or improving its generic product. Its main product, gasoline, has been defined in the simplest terms possible, and not fuel, energy, or transportation. This has allowed for this. Major improvements to gasoline quality do not come from the oil sector. As we will see, there are other sources of superior alternative fuels than the oil industry. It is small oil companies that have a secondary focus on marketing automobile fuels that bring in major innovations. These companies have been the driving force behind the rapid expansion of multi-pump gasoline station with their focus on large and clean layouts and quick driveway service. So, outsiders are causing trouble for the oil industry.
There will always be a threat in this land full of hungry entrepreneurs and inventors. Management would make a grave mistake if they believed that there was no substitute for the major industry product. This writer uses the example from petroleum industry. Inventions from different industries forced the industry to shift its focus many times. The invention of electric bulbs heating systems and kerosene for lamps meant that the industry was no longer using it.
Petroleum’s perils
These perils could be the result of total industries downsizing or total industry disaster. This peril has yet to occur in the industry, which is remarkable. Even though the oil market is in danger, there are still natural resources available. Uncertain future companies cannot guarantee they won’t go extinct. They can only ensure that the company continues to operate with their own strategy. The company may be out of business if it fails to offer the consumer-oriented service or product they need. Pressure to Create
Mass production was thought to be a method of reaching mass consumers with low-price products. It also served as a marketing tool. Although mass production was successful in the initial stages, it is no longer a viable option. Today’s customers require individual attention. A true marketer must provide customer satisfaction by offering a service or product that is of value to them.
Detroit Lag
Detroit didn’t really care about the customer’s choice. They developed their product using the economy-of-scale approach to price effectiveness. This was the reason for both the loss and the growth of the existing market. Ford was a company that put customers first. Ford was very focused on production orientation. Ford was able to produce huge quantities with full production capabilities and this allowed them to offer low-priced cars on the market. It worked. Ford was able generate a significant amount of market revenue. It was an extremely poor decision.
Product Provincialism
A company’s focus on customers and the market will determine its growth. A company that is not customer-oriented may be less concerned about its product development and production. They might lose the market and experience low growth. An organization that is product-provincialist may be encircling its products and services. Creativity is the act of creating value for customers through innovating new products or services. This is most common in the petroleum industry, where it was attempted to create a new product that customers like for growth.
Danger if R&D
While the companies don’t pay much attention to customer needs, they do continue to pursue R&D. Over-attention to R&D without consideration of other factors can lead to dangers. Engineers are the most important part of high-tech product management. Marketing is dominated by the product. Marketing is often overlooked
Companies invest heavily and focus on creating the best product. However, they do not care about customers and cannot satisfy all of their needs. These companies believe that customers will accept their ideas and will buy them products.
Stepchild Treatment
This happens in certain industries. One example is the petroleum industry. The petroleum industry is a mix of operations, marketing and search activities. This is the stepchild situation. End and beginning industries don’t actually make the product. It’s being developed with great concern. Industries exist to meet customer needs and address all related concerns. Industrial activities include product and service development, as well as other aspects. To understand the market environment and to determine customer needs, we must first identify what product and/or service they need.
In conclusion
We can conclude that many companies and industries are too focused on their own business. This is mainly due to their inability to see the future trends in their resources. This is particularly true because they are often subject to pressure from other industries.
Top management is often unaware of the fact that these companies are dependent on other sectors. Plus, the competition can come from completely unrelated sectors, as we’ve seen. The threat to the efficiency of energy-saving appliances was posed by an existing sector architecture that, at the time, seemed unrelated to it. Top management must think outside the box to counter these threats. You must thoroughly research the impact of emerging technologies on your business and analyze their implications. This knowledge is obtained by “engaging with others” in a creative way. It is a great way to gain insight into industries and sectors that may seem totally unrelated. Let others lead. Avoid excessive communication and interaction among project members. Establish a link between the project team members and those involved in the day-to-day operation as the project delivers its results. The authors were basically consistent in their ideas so that top management doesn’t fall for the trap and think that your own product or business is invincible. This means that they can continue to work on the project without any dependence on another business/product. Top management can choose to keep their heads down and not share the knowledge of others.
