Introduction:

Marketing Myopia is used in marketing as well as the title of a marketing paper written
by Theodore Levitt. This paper was first published in 1960 in the Harward Business Review, a
journal of which he was an editor. Marketing Myopia suggests that businesses will do better in
the end if they concentrate on meeting customers’ needs rather than on selling products.

Marketing Myopia is tagged as a situation wherein a company works with the sole aim of
selling a product, ignoring all other aspects even the ultimate goal of customer satisfaction.
This situation presents a stringent marketing approach wherein a company drives all its efforts
towards selling a product and lay emphasis on any single aspect from other available marketing
attributes. A simple illustration of marketing myopia is that if a company wishes to increase its
sales and ignores other aspects of brand promotion or even making a search of what customer
actually wants.

Marketing Myopia is analogous to a product orientation, whereby the firm defines itself as a
product-producer. One alternative is a customer orientation, whereby the firm defines itself as
a satisfier of customer wants and needs; that is, the customer orientation helps the firm to
anticipate and adapt to changes in customer demand.

The customer orientation has also been considered as a type of Marketing Myopia. Firms
overemphasize the satisfaction of customer wants and needs and, as a result, have ignored
competition. A competitor orientation has been proposed as a replacement for the customer
orientation with this orientation.

Meaning:

This brings up the age-old debate of selling vs. marketing. Many people conflate the two terms.
Selling is concerned with the needs of the seller and/or manufacturer whereas marketing is
more concerned with satisfying the needs of the buyer and client. When you are selling, you
are putting your efforts into creating the best product on the market that will appeal to the broad
spectrum of the target audience. When you are marketing, you are taking what you have made
and tailoring it to appeal to a particular customer’s needs.

Marketing Myopia is deals with the short-sighted nature of many companies who start strong
but end up failing at the end. These companies seem to concentrate so much on immediate
short-term gains that they lose sight of making profits and benefits in the long run.
To give you a better idea of what Marketing Myopia is, we have compiled an extensive guide
for you that goes over several talking points of marketing. By the end of this, we hope to have
clarified the mystery of marketing and made you open your eyes a little bit wider to see the
bigger picture of long-term gains.

Marketing Myopia is the phenomenon of not being able to see a long term and more sustainable
goal for an organisation. For decades, the term Myopia is being used in human sciences
referring to Near sightedness the ability to see near objects clearly but inability to see the far-
off objects. Marketing Myopia, as a term, makes it very clear the inability of the company to
be able to identify the actual business in which they are.

Definition:

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 in terms of the customers' needs and
wants. It results in the failure to see and adjust to the rapid changes in their markets.

The concept of marketing myopia was discussed in an article by Harvard Business School
emeritus professor of marketing, Theodore C. Levitt who suggests that companies get trapped
in this situation because they omit to ask the vital question, "What business are we in?"

Myopia- a visual defect affecting the ability to focus properly.

A failure by management to effectively define their business based on customer demand.

The tendency of management to view their business too narrowly by relying on a growing
population, product with no apparent substitute, or mass production that reduces cost.
Green marketing:
Green marketing is the marketing of products that are presumed to be environmentally safe. In
order to be successful, green marketing must fulfil two objectives: improved environmental
quality and customer satisfaction. Misjudging either or overemphasizing the former at the
expense of the latter can be defined as green marketing myopia.

The marketing discipline has long argued that innovation must consider an intimate
understanding of the customer and a close look at green marketing practices over time reveals
that green products must be positioned on a consumer value sought by targeted consumers.

As such, successful green products are able to appeal to mainstream consumers or lucrative
market niches and frequently command price premiums by offering “non-green” consumer
value. When consumers are convinced of the desirable “non-green” benefits of environmental
products, they are more inclined to adopt them.

Aside from offering environmental benefits that do not meet consumer preferences, green
marketing myopia can also occur when green products fail to provide credible, substantive
environmental benefits.

Sustainability marketing myopia:

Sustainability marketing aims at marketing sustainable products and services which “satisfy
customer needs and significantly improve the social and environmental performance along the
whole life cycle, while increasing customer value and achieving the company's objectives.

In turns, sustainability marketing myopia is an exaggerated focus on the socio-ecological

attributes of the product over the core consumer values, a distortion of the marketing process
which is likely to lead to the product failing on the market or remaining confined in a small
alternative niche.

However, it is important to note that sustainability marketing myopia differs from green
marketing myopia in that the former follows a broader approach to the marketing myopia issue,
taking into account the social attributes of a product, as well as the environmental ones. At the
same time, sustainability marketing myopia encompasses sustainable services and product-
related services, not products alone.
Fundamental Idea:
The Myopic cultures, Levitt postulated, would pave the way for a business to fall, due to the
short-sighted mindset and illusion that a firm is in a so-called 'growth industry'. This belief
leads to complacency and a loss of sight of what customers want. It is said that these people
focus more on the original product and refuse to adapt directly to the needs and wants of the
consumer.

To continue growing, companies must ascertain and act on their customers’ needs and desires,
not bank on the presumptive longevity of their products. In every case the reason growth is
threatened, slowed or stopped is not because the market is saturated. It is because there has
been a failure of management.

Some commentators have suggested that its publication marked the beginning of the modern
marketing movement. Its theme is that the vision of most organizations is too constricted by a
narrow understanding of what business they are in. Its exhorted CEOs to re-examine their
corporate vision and redefine their markets in terms of wider perspectives.

It was successful in its impact because it was, as with all of Levitt's work, essentially practical
and pragmatic. Organizations found that they had been missing opportunities which were plain
to see once they adopted the wider view. The paper was influential. The oil companies
redefined their business as energy rather than just petroleum. By contrast, when the Royal
Dutch Shell embarked upon an investment program in nuclear power, it failed to demonstrate
a more circumspect regard for their industry.

One reason that short-sightedness is so common is that people feel they cannot accurately
predict the future. While this is a legitimate concern, it is also possible to use a whole range of
business prediction techniques currently available to estimate future circumstances as best as
possible.

There is no such a thing as a growth industry. There are only companies organized and operated
to create and capitalize on growth opportunities. There are 4 conditions of the self-deceiving
cycle:

1. The belief that growth is assured by an expanding and more affluent population.
2. The belief that there is no competitive substitute for the industry’s major
product.
 3. Too much faith in mass production and in the advantages of rapidly declining
unit costs as output rises.
4. Preoccupation with a product that lends itself to carefully controlled scientific
experimentation, improvement, and manufacturing cost reduction.

Theory:
The problem of marketing myopia is one that manifests due to the growth of a company. Levitt
starts by mentioning that every business or industry will experience growth based on the
superiority of its product, but that this engenders conditions under which mismanagement
becomes rife.

Selling should not take priority over marketing, Levitt declares:

This is a mistake, since selling focuses on the needs of the seller, while marketing concentrates
on the needs of the buyer…the history of every dead and dying ‘growth’ industry shows a self-
deceiving cycle of bountiful expansion and undetected decay.

 Be as consumer focused as possible

 Be constantly innovative
 Be in a position to control
 Be in a position to understand customer desires
 Be able to conduct regular research programs
 Be able to adapt to innovative marketing strategies depending on the consumer feedback.

Levitt’s basically saying even if your business growing, don’t forget to give the customer what
they want. That’s basically the gist of a revolutionary idea that initiated an entire paradigm shift
for CEOs going into the 21st century.
1. An industry is a customer-satisfying process, not a goods-producing process. Businesses
will do better in the end if they concentrate on meeting customers’ needs rather than on
selling products.
2. Companies stop growing because of a failure in management, not because the market is
saturated but because of myopia.
Situation leads to Marketing Myopia:
Some instances that are viewed to give rise to the actual situation of marketing myopia are the
result of poor management. Otherwise, good management will always look for a company
growth in long term perspective. Marketing Myopia happens under the following
circumstances:

 When a firm is only engrossed on selling its products and gives less importance to
customer relationship building

 Producing goods in massive quantities without bothering about the scale of demand

 Forecasting growth without research

 Holding one marketing aspects higher than other linked marketing concepts; this leads
to total ignorance towards customer’s needs and desires

 Being rigid even when the consumer environment changes

Importance:
Marketing Myopia over the period has become a critical concept which every business has to
understand for attaining success and consistent growth. Basically, this concept discourages a
company to think short term wherein the focus is on selling and not understanding the consumer
behaviour. With the changing market scenario, the customers need evolve. So, marketing
myopia theory aims at guiding the businesses about bringing in products that cater to customers
changing needs especially in terms of technology. This concept lays complete focus and
importance on conducting thorough market research which can help it to be well prepared to
face market competition.

In a nutshell, Marketing Myopia Theory proposes a business to be consumer-focused wherein

it must strive to constantly innovate its offerings. It suggests the marketers to take a controlling
position wherein they are better equipped and prepared to learn about the customer desires. As
per this theory, business must be able to carry out regular research and learn about the changes
being introduced in the market. This regular updating about marketing trends can help an
organization to adapt innovative marketing strategies basis consumer feedback. As per MM
Theory, a company must understand the consumers’ needs and find out ways to improvise
products to hold customer loyalty for long term.
Major examples of Marketing Myopia:

1. Marketing Myopia in the Transportation Business

A lot of companies operating globally in the railroads business have faced stagnation of growth
in their line of business.

What they have failed to realise is that they are not merely in the railways or railroads business.
They are actually in the business of transportation. At a time where there are more and more
newer ways to commute their railroads business will definitely take a hit. So basically, while
crafting their diversification plans the companies should consider a holistic picture of
transportation as a business and not just railways or railroads. This stands to be a classic
example of Marketing Myopia.

2. Marketing Myopia in Entertainment Business

Hollywood had a narrow escape few years ago when the leading production houses faced a
crunch. Almost all of them underwent major restructuring. Why all of this happened? Simply
because Hollywood assume that they are in the business of making films and did not consider
TV as a threat.

What they didn’t realise was the simple fact that they are not in the business of just movies but
entertainment as a whole and tomorrow if the consumer has different sources of entertainment
their product i.e. movies, will definitely take a hit. However, Hollywood managed to escape
this Marketing Myopia, as they sooner or later realised TV as a potential growth opportunity
for them as well rather considering it altogether a different animal. It was then when Fox, Buena
Vista etc- entered into TV production as well and had survived. Few media companies went
the extra mile and established amusement parks as they considered that too as a mode of
entertainment and thus their business.

3.Marketing Myopia in Apparels Business

Few years ago, Dry cleaning was one of the most sought-after line of business. Worldwide
increasing number of wool products led to this ‘then’ very lucrative business. However, what
the dry-cleaning guys didn’t realise was the fact that they were not merely in the dry-cleaning
business but were in the business of apparels. As new fabrics arrived, the market share of wool
products started going down. Synthetic fibres started gaining more popularity and thereby dry-
cleaning business suffered.

4. Marketing Myopia in Consumer Durables

Though not as evident as the cases described earlier in this article, there is a high probability
of consumer durable running on electricity to face obsolescence.

The electric goods came into picture at the cost of traditional fuel driven appliances e.g. wax
candles, kerosene lights etc- Consumers found ease with electric utilities which can directly be
plugged and switched on. However, if we see from a different lens, it is very much possible
that the next wave of products do away with any electricity plugged in and might have their
own sustainable fuel cells which keep them running. e.g. Imagine a smartphone which never
needs to be charged. The best way to handle such obsolesce would be to plan the obsolesce and
introduce newer technologies and hand hold the market share from one technology to another.

5. Marketing Myopia in Retail Stores

Once considered to be the bread and butter of many households, now retails stores face a
threat from a supermarket, online shopping etc. What these households running Mom & Pop
shops do not realise is that they are not merely in the business of selling their products to
nearby areas, they are in the business of quick & easy access of groceries.

Supermarkets came into the picture because of convenience. Instead of wandering around
different stores for goods, people started to flock to super markets to get everything under one
roof. Similarly, the consumer doesn’t mind buying the product from a online shop as long as
it delivers as per their time and have the product range that they are looking for.

Brands which failed due to Marketing Myopia:

There are several brands which failed to sustain in the market because of Marketing Myopia
and some of the renowned brands are Nokia, Kodak, Sony Walkman, etc. Let me discuss in
brief about some of the companies and their failure reasons.
NOKIA

Nokia is considered as one of the best examples of marketing myopia. It focused all its
resources thinking that it is in a growing industry and overlooked the future needs of customers.
It thought the mobile phone is only for messages, calls and some snake games, but at the same
time, companies like Samsung, apple, etc came with revolutionized technologies bringing GPS,
internet, media, etc into mobile phones changing the entirety of the mobile phones industry.
for example, if Nokia focused on customer needs and created innovated products anticipating
the customer needs, it would have been still enjoying market leadership, but unfortunately, that
doesn't happen.

KODAK

Kodak is another example which lost its market share because of this very underestimated and
often overlooked concept of marketing myopia. Kodak thought it is in a photograph and camera
selling business and hugely ignored the potential of the digital camera and photographic
technologies which forced it to fail in the business and canon, Nikon, etc focused on customers
digital needs and formulated strategies to triumph over the Kodak. If Kodak, focused on
customer needs rather than focusing on selling its products to customers, it would also have
been enjoying the supreme position in the market today.

The attributes like product quality, service quality, durability, reliability, etc can only help the
company sell its products in the present but it cannot help future of the company. It is very
evident in the case studies of Nokia and Kodak. Both these companies sold products which are
highly durable, quality, etc. regardless of these attributes, these giants failed miserably only
because of the ignorance of customer needs. Customer need anticipation and constant
innovation is the key to a sustainable business.

SONY WALKMAN:

They were already popular with cassette tapes, and now they were even appealing to people
listening to music on CDs. Even in the early 2000s, Sony continued to sell Walkman. However,
this is where a competitor came into the market and shook things up. In the year 2001, Apple
launched the iPod, a portable music player that housed digital music files on a tiny device. That
was unheard of at the time. To be able to listen to music that exist as digital files on a tiny
player without the need for physical media was a revolutionary concept.
Everybody knew how to rip music from a music CD, but there were no viable options of putting
it on a portable device dedicated to playing music. Apple launched their product and Sony lost
all of its momentum. Sony still had players relying on physical media, so their Walkman were
large and bulky. On the other hand, the iPod was very small and lightweight, appealing to
everybody.

In India:

1. Maruti Gypsy:

Gypsy was one of India's first sports utility vehicles. The brand had the tagline of " There is
a Gypsy in Everyone". Gypsy did not change itself in tune with the changing industry
requirements. The company enhanced the power from 975cc to 1300 cc only after 11 years.

2. LML Vespa

LML Vespa was with the collaboration of Bajaj, LML & Piaggio. Two-wheeler industry was
redefined from scooter to motorbike When scooters was considered a work- machine, it was
Vespa which redefined the market. LML was not able to upgrade their scooter.

3. Ambassador:

Can be called as the first Indian car. 1958 to 1980's Ambassador ruled the Indian market HM
never bothered to rationalize the price of the brand. Branding and product development.

4. HMT Watches:

• Market share. • Neglected its strength. • Advertisement • Retailer Stores

5. Aarey Energee Drink

Industry- Flavoured milk, was a leader initially, Now Amul Kool is the market leader with 90%
share. Concentrated to Mumbai market. All competitor products available in Tetra packs.
Government owned organization

6. Door darshan TV Network:

Only option available to Indian Viewers till late ‘80s. Hugely successful programs like
RAMAYANA, MAHABHARATA, Chhaya-geet, Malgudi Days etc. Did not catch up with the
latest technology, trends & changing consumer tastes. Tough competition from new satellite
channels.

Causes of Marketing Myopia:

1. Companies assume they are in growth industry:

In essence, a business is doing extremely well in the economy and growing rapidly because it
is doing something revolutionary or is pioneering the future can be considered to be in a growth
industry. Well, at least the company thinks so. With the following example, you will clearly
see why companies who assume that their product or service is the be-all and end-all of
solutions usually shoot themselves in the foot.

EX: Dry cleaning

2. Companies believes that there is no competitors:

Many companies ride their early success, never imagining how rapidly their business will grow
in a short span of time. This is very apparent in the railroad industry in the early 20thcentury.
The following example will illustrate how companies that fail to define their business and
neglect the possibility of substitutes are ultimately caught off guard.

EX: Rail roads and Trains

3. Failure to consider the requirement of the consumer:

Oftentimes, companies put a ton of effort, time, and money into their own products without
considering the needs and desires of their consumers. Levitt said that instead of being business-
centred, organizations should always be customer-oriented in order to win in the long run and
survive in the market.

EX: Nokia

4. Focusing more on products not on customers:

The biggest problem plaguing companies is focusing entirely on mass production. A company
will presume that since they have been performing so well, they can simply manufacture a large
volume of products without tailoring them to the needs of the consumers. There is a lesson to
be learnt here – always solve problems first, then go for mass production.
According to the theory of mass production, you will be able to drive the unit cost down by
producing more units. While that may be true, that is only fruitful if you can actually sell what
you are producing. Imagine having a large inventory of products that you believe are
exceptional and you fully believe that people will love them when they see it. You have totally
neglected marketing and put too much attention on production.

EX: Detroit automobile industry

5. Failure to consider changing customer lifestyle in the digital age:

Another point to mention that catches many companies off guard is that they seem to fail to
predict how the future will be. They fail to notice the changing consumer lifestyle in this digital
age. They do not see the trends of the market, and this puts many companies in a precarious
situation, thinking it would be safe to not worry so much about the future and focus only on
the present situation of things.

This leaves many companies wide open for competitors to swoop in and steal your customers
right from under your nose, all because you did not future-proof your brand.

EX: Sony Walkman

6. The myth of an Ever-expanding population:

There is an age-old belief held by many industries that if the population continues to perpetually
expand and becomes more affluent with the world economy improving, your market has
naturally increased with more customers willing to pay. Companies have a false sense of
security and do not worry much about the future if this assumption is indeed true.

The keyword here is ‘IF’. If consumers are multiplying and they are able to buy more of your
goods, then you have almost nothing to worry about in the future. The view that the market
does not shrink but keeps on expanding is prevalent in some industries.

EX: Oil and Gas companies

6. Excessive dependence on research and development:

When it comes to companies specifically in the high-tech sector, they tend to rely heavily on
research and development to create new and innovate products for consumers. When it comes
to technology and engineering, the name of the game is innovation. We agree that it is necessary
for a tech company to invent new things if they want to thrive but it must be done with the right
intentions and motives.

EX: Google class

Suggestions for avoiding marketing myopia:

1. Have a clear vision:

t takes far more than good intentions and promotional tricks to have a successful business.
Those may be great selling tactics but they are not necessarily good marketing ones. In order
to be a marketing-centric firm, a company needs to have its top management be very good
leaders.

In order to clearly predict the position of your company in the future, you have to do much
more than simply survive; you must find a way to thrive.. Who are the visionaries of the modern
era? Think of Elon Musk, Mark Zuckerberg, and even the late Steve Jobs.

EX: Visionaries that make their Business Successful

2. Be customer-oriented, not product-oriented:

We have emphasized this point several times throughout this article because we believe it is
the most significant criteria of being a successful company in the future. You must be a
customer-oriented, also known as market-oriented, company that creates products and services
that the market wants to consume.

Focus on the needs of the consumer and you will naturally cast a wider net to appeal to a larger
audience. Focus on the requirements of the product and you will quickly realize that your
expectations of a great product may not meet the ever-changing demands of the market.

EX: Lotion

3. Marketing is more important than selling:

The above example on lotion branding demonstrates the effectiveness of marketing your
products aimed at the needs of customers versus selling your products based on its qualities.
Yes, we do not deny that there are customers who buy products based primarily on its qualities
and features. However, a vast majority of consumers for the most part purchase goods based
on whether the products actually help them.

If a product or service does not provide any kind of utility or benefit to the end consumers, then
odds are they will not buy it and your business will suffer from a tremendous loss. How can
your business determine the needs of consumers prior to creating products or services? Well
this is where market research comes into play.

4. Conduct comprehensive market research:

In order to truly understand the things that people want, you need to ask them directly.
Conducting surveys and sending customer feedback emails go a long way in acquiring a deeper
insight into the mind of consumers. In this digital age, it has become common to ask questions
via social media platforms like Twitter and Facebook.

Many companies even have their own blogs and forums where they ask customers and users
questions like “What would you like to see us improve in our products and services?” When
you are engaging with your target audience, it shows that you actually care about the market’s
needs and wants much more than your own.

5. Be aware of the competition and use your resources:

One of the key lessons you should take away from all of the examples listed in this report is
that in order to be a successful company for a long amount of time, you must be aware of your
competition. Being complacent and resting on your laurels is a sure-fire way of being
supplanted by another company that took the effort to be daring and innovative.

6. Diversify your business to safeguard your future:

Diversification is a great business idea that you should definitely consider if you want to avoid
marketing myopia. When you evolve from your cocoon, you can spread your wings and realize
that your business has so much more offer. Do not be so one-dimensional and linear; try to be
three-dimensional by offering various products and services to consumers.

EX: Nike

7. Disruptive innovation:
A form of innovation that has proven to work wonders in the world of marketing is disruptive
innovation. Many established corporations sell their products and services at a high price to
their consumer base who have been loyal to them for quite some time. However, there are many
who cannot afford to pay such a large sum of money for something they need. They look for
cheaper alternatives that provide them the same utility at a much lower cost. This is where a
start-up company can step in and establish their presence that will last a very long time.

EX: Digital music downloads

Conclusion:
For a company to experience continuous growth in today’s ever-changing landscape of
business, it must concentrate on satisfying customers’ needs rather than selling products.
Organizations must attempt to continually adapt to best meet customer needs in order to
compete in a new industry. By being customer-oriented, an organization will naturally
experience an increase in sales volume and revenue. Being short-sighted is detrimental in
marketing. You must always think long-term and play for the end game to be successful.

We have listed quite a few examples from Apple in this article. There is a good reason for this.
If you look at all of their products, you will see that they are not necessarily the best products
on the market. Nevertheless, they sell very well. Why is that? It is because they are marketed
very well. Apple’s marketing team is one of the best in the business, especially in the
electronics and high-tech industry. You can learn a lot from their marketing campaigns and
strategies.

“Organizations must learn to think of themselves not as producing goods or

services but as buying customers, as doing the things that will make people want
to do business with it.”