Marketing Myopia of HTC Phones - Essay Example

Marketing Myopia of HTC Phones al Affiliation: Marketing myopia has been one of the major problem facing organizations in different parts of the world. HTC phones have failed to penetrate the market because the company has focused too much on the production process rather than meeting the varying interests of the target market. The market has become dynamic. Therefore, the interests of the customers should take the centre stage in order for the organization to retain its competitive advantage in the market. Marketing myopia theory advocates for the shift in attention towards the tastes and preferences of the customers. It expects the marketers to be in the forefront in advising the production department on areas that need to be adjusted in order for the products or services to penetrate the market. Table of Contents Table of Contents 3 Introduction With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information, and integration of economies, the level of competition has increased tremendously over the years. The situation has been aggravated by the entry of multinational companies in the market. These are firms that have a huge financial base to segment the market, position their products strategically in the market, and attract the loyalty of the clients to towards their products (Moore & Pareek 2006). The mobile market has been the most affected with many businesses expanding to different markets in order to reduce the risks and uncertainties associated with concentrating on a single market. Companies such as Samsung, Sony, Apple Inc, and Huawei have intensified their promotion activities in order to retain their competitive advantage in the market. However, HTC is yet to penetrate the global market and segment the market. This is threatening the existence of the company in the market. This paper will therefore, analyze the marketing myopia that has been affecting HTC phones in the market. In addition, it will give several recommendations that can be used by the top-level managers in order to guard the organization and the subordinates against myopia. Background to the Case HTC is a Taiwan based the company that was once known for its innovativeness and prowess. Many forecasted that the firm will dominate the global market in the next few decades. However, the company is yet to make remarkable progress in relation to growth and developing. This is despite the organization releasing various products which many analysts state that they can match that of Apple Inc. For instance, HTC one is stated to have modern features that when marketed effectively can take the market by storm. However, this is not the case. On the contrary, even after the launch of the new phone, the product is yet to penetrate the market. Many of the potential customers are not even aware of the existence of the product in the market. This is an indication of how the marketing sector in HTC remains myopic despite the new advertising opportunities available in the market. HTC has also been active in developing various applications, software and hardware. The latest application by the company is BlinkFeed. This is an application that aimed at satisfying the interests of the young generation. However, majority of the customers who falls under this segment do not even know of its existence. The major market by the company composes of the young people. These are people with a disposable income which they are willing to spend on high quality services. However, this market segment is prone to changes (McCole 2004). As a result, the marketing department should ensure that it conducts an intensive market research in order to identify any changes in their tastes and preferences. However, this sector is keen on advising the company to produce innovative products but does very little to push these products into the global market (Schmidt 1995). This aspect has played a significant role in reducing the overall growth and development of the company. Definition, Discussion and development Marketing Myopia Theory and Literature Marketing myopia is a short-sighted approach which is inward looking that focuses mainly on the internal needs of the customers rather than the interests of the customers in terms of their needs, wants, tastes and preferences (Richard, Womack & Allaway 1992). This approach leads to failure because the company’s management fails to identify the changes in the market, an aspect that forces the customers to look for the substitutes in the market. With the increasing levels of globalization, multinational companies have invested heavily in innovation. This is to ensure that the interests of the customers are incorporated in the production process. Over the years, companies had been focusing on the overall sales (Fernandes & Proenca 2008). However, with the entry of various substitutes in the market, customer relationship management has become a very important concept. However, HTC phones are yet to incorporate these changes. Instead, the companies have focused on training and equipping the workforce with the necessary skills to produce high quality products. Nevertheless, beside production, marketing has become an important activity especially with its expanding size. Other firms have changed their marketing strategies in order to ensure that they reach the target market irrespective of their location. For instance, companies such as Samsung, Apple Inc, and Sony have turned their attention towards social media and internet market in order to reach the young population which is the largest market segment. Social media has played a significant role in enabling the companies to communicate directly with the customers (Balmer 2011). In addition, initially, these companies were spending a huge percentage of their revenue to conduct market research. However, with the entry of the social media in the market, it is now possible for these firms to conduct research through collecting the views of the customers concerning a product and service (Levy & Luedicke 2013). In addition, it has become possible for the companies to understand different elements that make the customers to change their tastes and preferences. This enables the companies to make the necessary changes before the customers are attracted to the competitors’ products. This aspect has enabled organizations such as Apple Inc to remain competitive in the market. Marketing myopia was first developed by Theodore Levitt. The theory expounds that marketers should turn their attention towards the marker and make changes in the company in order to improve the company’s presence in the market rather than looking towards the company and it’s potential. In the meantime, HTC Company has spent a lot of money in developing new phones some of which are yet to penetrate the global market. The company has also used a lot of money to bring in modern technology. This is after the advice of the marketers that the customers are looking for high quality products. However, the company did not involve the customers in developing the new products. In addition, the marketers have failed to advice the production unit on importance of ensuring that the customers remain an integral part in the production process. As a result, the focus of the company has been entirely shifted towards the production process rather than the market itself. At the same time, the competitors are ensuring that the customers are satisfied with the products being offered in the market (Aras, & Crowther 2011). For instance, Apple Inc has set up a team to collect the views and grievances of the customers. In 2013, there were complains that some of its new model phones had developed various hitches. In order to rectify the issues and avoid losing the loyal customers to its competitors, the marketers contacted these customers and requested them to take the phones back to the stores and they will be exchanged with new models. This intervention made the loyalty of the customers grow tremendously (Morrell & Jayawardhena 2008). In addition statistics indicate that the company recorded the highest number of referrals ever since its inception. This is an example of how far the marketers can go in order to ensure that the reputation of the company remains intact even after a certain hitch occurs in the production process. According to the marketing myopia theory, in order for a company to cater for the market, it needs to not only to be technically sound and product oriented but it should also customer oriented (Baker 2001). With the global market, customers in different parts of the world have varying needs and interests. Therefore, the company needs to have a diverse workforce and marketers who will be able to understand the unique characteristics of the market. For instance, HTC phones could have been marketed in different markets using varying messages. In addition, different medium could have been used in order to reach all the potential customers irrespective of their geographical location. Instead, the companies concentrated on ensuring that the product was introduced in the market and expect the products to penetrate the market based on their features (Levitt 2008). The modern marketing myopia mainly occurs when the marketers fails to look at the broader context of society influence in decision making (Svensson 2001). Instead, the marketers look at customers as a whole rather than units with distinct needs. The modern marketing myopia ensures that customers remain the centre of consideration. Instead of HTC phones addressing the specific needs of the customers, it has been produced for the mass market. Therefore, it does not have specific features for a particular market segment. This has made it hard for the company to segment the market and attract customer loyalty towards their products and services (Wright Jayawardhena, & Dennis 2008). Evaluation and Discussion The marketers are being forced to change their approach because of the dynamism of the modern market (Tajeddini & Trueman 2008). Initially, the companies dominated the market because countries had put up measures to protect the local investments. However, with the liberalization of markets, the companies have been forced to change their approach in order to retain their competitive advantage in the market (Alon, Jaffe, & Vianelli 2013). For instance, rather than just concentrating on specifications of the products or services, the customers are being given an opportunity to dictate what the company is supposed to produce. In addition, the pricing strategy has changed tremendously. Companies are being forced to ensure the pricing policy is based on the interests of the target market (Levitt 2006). This is what Theodore was advocating for using marketing myopia theory. Traditional Marketing Myopia According to Theodore, traditional marketing myopia was advocating on the needs of the stakeholders when producing the products. This is through ensuring that the sales were high and the company records growth (Kotler & Levy 1969). However, according to the modern concept, growth cannot be achieved unless the customers are satisfied and interested on the company’s products. This aspect has forced the scholars to redefine the theory. Other emerging views of marketing myopia Marketing Concept A marketing concept is an approach taken by the marketers in order to ensure that the customers know that the product or service exists in the market. However, a single concept cannot be used by a company in order to market its products (Lamb, Hair, & McDaniel 2009). Therefore, HTC is supposed to use a combination of various concepts in order to ensure that the customers’ interests are taken into consideration by the concept. Marketing’s Relevance HTC has overlooked the changes in the market environment. As a result, it is using traditional concept which cannot apply in the modern market. The company has focused too much on efficiency and failed to recognize the need to look at the interests of the market. Marketing’s Stakeholders The stakeholders include managers, employees, customers, suppliers, creditors and any other group associated with the company (Larréché 2008). However, in HTC the major customers are the young people who have a disposable income and are willing to use it to purchase high quality products that meet their varying needs. The managers should ensure that the interests of all these groups are balanced. However, the customers should always be given the first priority because they are always right and guides the company on areas that need to be changed through innovation. Marketing’s Scope HTC has focused on a single scope, i.e. advertising. It has forgotten to intensify its advertising campaigns. This is having a major impact on the phones’ performance in the market. Context of marketing theory It is possible for HTC to transfer the marketing knowledge to industry context by informing the production unit on areas that are of great interests to the customers (Smith, Drumwright, & Gentile 2010). This relationship would ensure that the production process is run by the customers’ needs and preferences. Managerial Recommendations The company should conduct frequent market research in order to understand the interests of the target market. For instance, it should reduce the budget used in marketing by using social media to conduct a research concerning the varying interests of the target market. HTC should turn its attention towards social media marketing. This would enable the company to lower the cost of advertising which should be forwarded towards research. 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