Criticism of Marketing Myopia Article - Essay Example

? “Marketing Myopia” Theodore Levitt published “Marketing Myopia” originally in 1960. This book offered insights on how to get equipped mentally before embarking on any business plan. Myopia means shortsightedness. It shows how any business should focus on satisfying customer’s needs and wants to maximize profits. It changes the perspective of marketing especially to the short-goal entrepreneurs. It is a revelation to companies that engage in business motivating them to take advantage of the growing times and economies. He passes his ideas in a challenging manner and this makes the article fantastic. He argued that there is no such thing as a growth industry, what is there is growth opportunities that one should take advantage of to enhance their welfare. Levitt also gives people a better understanding of misconceptions like the belief that growth is guaranteed by an expanding population. Instead, the commodities released should target a certain gender or age. He also shows that mass production does not always yield as expected due to imbalances in the scale of production. Mass production results to low cost per unit as the output increases. In production, one should focus on the quality of produce rather than the marketing. Good quality output markets itself as compared to poor quality ones that have to be pushed into the market. Since most enterprises needs lie on maximizing profits than it is more appropriate to focus on the company’s needs rather than customers’ needs. A brilliant marketer creates products that suit the consumer and are affordable. Good quality products in the market gain popularity faster when compared to poor quality ones by competitors. This gives the market true illusion of what your products are like. Theodore Levitt gives companies a clue on how to maintain efficiency with its rising popularity. An increase in output quantity tends to reduce unit cost, and if not monitored it pulls down the business. Through maintaining efficiency, companies are likely to enjoy larger profits and experience growth. He discards the belief that no competitive substitutes of outstanding products exists in the market. This is an entirely irrational belief. Every product in the market have their substitutes, it is only that you have not done the research on more products in the market. He mentions that, we should not focus on short-term benefits. The long run benefits, which most of the firms are not ready to wait. With changing times, people tend to change on preferences and tastes and therefore this prepares the business firms for these changes in the future. The short focus is what the author refers to as myopia. He gives examples of the railroad and oil industries that can be taken over by other close competitors. He adds that there is no guarantee on product obsolesce and gives an example of petroleum products which were used since time immemorial up to date but has never been exhausted. Technology improvement cause this and the discovery where other sources of energy have been resolved to hence the decline on use of petroleum products. The most salient thing on Levitt’s article is on maintaining the business in the market for the longest time and enjoying maximum profits. Business firms should set long-term goals to help them serve their customer needs in a more appropriate and reliable manner. This helps the products get established and therefore with time It dominates the markets. However, what Levitt has missed out is that he only talks of myopia back then not putting into consideration the present times whereby myopia has taken a different turn. There exists new forms of myopia especially where entrepreneurs’ get single minded instead of venturing into different fields in the market. Maybe accommodating other stakeholders in the market would help enhance venturing into the diverse existing opportunities. Another problem comes in when the firm misinterprets the true definition of a customer and satisfying their needs. With the changing times consumer needs have changed and therefore producers and firms have to consider the changes in the societal context and hence raising the need for multiple stakeholders in supply. Also after identifying the myopia that exists in the market, he does not offer any solutions on how to correct the myopic condition. There are several propositions that would help the marketers correct the conditions. One, the firm can research on the company’s map, the expectations of its stakeholders and engaging the stakeholders in whatever resolution is taken. The new form of market myopia that has come up, marketers view customers as a commercial entity whose needs are satisfied in the short-run. They forget about the future where we are heading to and we are all stakeholders in the market. It is due to myopic investors that some economies never get to grow. Some of the potential opportunities which could be more profit rewarding are not ventured in. There is the need to do away with conservative minds and adopt open-minds that enable us to venture into risky but profitable activities. The government may also play a prominent role in promoting myopia. If the government implements policies that do not give business owners the freedom to carry out business acting like owners. Therefore, the government should assist by giving freedom to business owners but protecting them from crimes and maintaining security. However, Levitt’s article has overcome the changing times and has helped maintain many businesses running due to its classic nature. It equips marketers with the mindset and ambition to pursue and keep on despite the desire to go by the short-term goals that seem to do better than the long-term ones. He insists on the need to satisfy consumer needs rather than the needs of the firm. In conclusion, even with the newest and brighter ideas existing today, there is a need for one to understand that myopia is an existing reality that holds back the progress of most enterprises. Through the article by Theodore Levitt, investors have been able to be more open-minded, focused, and pushing to their dreams. This article is quite necessary to every investor even with the changing times. Reference Levitt, T. (1960). Marketing Myopia. Harvard Business Review. Read More