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MARKETING MYOPIA

PRESENTED BYGROUP 1


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Contd

Concept by Theodore Levitt in Harvard Business

Review in 1960.


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CONTD..

Short sighted and inward looking approach to

marketing that focuses on the needs of the firm

instead of defining the firm and its products in terms

of the customers need and wants.

In short, marketing myopia means, focusing

products rather than customers.


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MYTHS IN MARKETING MYOPIA

Population myth.

Production myth.

Dangers in R&D.

Threat from substitutes.


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AFFECTED INDUSTRIES

Banking

Automobile

Entertainment


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POPULATION MYTH

In the population myth, it is believed that profits are

assured by an expanding and more affluent

population.

The market also starts expanding and more and more

people started buying the product.

This myth contributed largely to the failure of many

products.


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FAILURE OF

IN FOCUSING CUSTOMER SERVICE

SBI is the largest state owned bank.

It has more than 16000 branches in India and 130

branches overseas.

It provides the range of banking products through its

vast network of branches in India and overseas.


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But , managing huge population became a serious

threat for SBI.

Lack of focus on customer service and delay in

incorporating computerization worsened the situation.


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SBI SERVICES

Computerization.

Online banking.

ATMs. Retail banking.

Commercial banking.

Life Insurance.


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PRODUCTION MYTH

Concentration of companies only on production or

product.

Belief that companies can protect themselves and

ensure growth through mass production.

Emphasis only on mass production and economics of

scale.

More product oriented, rather than customer oriented.


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AMBASSADOR STRUGGLE FOR SURVIVAL


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OVERVIEW

H

M an Indian automobile manufacturer is a part ofBirla Group of industries.

The company was the largest car manufacturer in

India before the rise of Maruti Udyog Ltd(MUL).


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Contd..

Ambassador Launched in 1958 was known as the first

Indian car, owes its design and technology to British

car model Morris Oxford built by Morris Motor

Company at Oxford, UK.

Ambassador quickly occupied and ruled Indian

Markets from 1958-1980


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AMBASSADOR-SUCCESS STORY.

Ambassador was widely used as a taxicab and as a

government limousine.

It was the only car with Diesel option.

A sturdy car, ideal for Indian Markets.

Perception of being less expensive to maintain. Large spaced.

Over 16% of brand sales came from the Indian

Government.


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REASONS FOR THE BRAND FAILURE.

HM never knew whether they fit in the existing

economy

Ambassador never changed with times. It focused ononly one segment till 1997 and within that time MUL

was able to bring out brands for each segments within

the nation.


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Contd..

HM didnt try to make some changes and upgradesbut overall the look and built-in quality remained the

same.

Ambassador sales dipped badly in the year 2000 but

HM never bothered to rationalized the price of the

brand. Even today it costs over Rs. 4,00,000.


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Contd..

Indica took away the taxi car market and the

customers got a new option for Diesel car with

modern technology.

Immense competition from other major dealers like

MUL, Hyundai etc.


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Contd..

In 2002, Mr. A. B. Vajpai replaced Ambassador with a

BMW Limo, from then on it lost the position of being

the first politicians choice.

The car lacked the quality and refinement. Rattling

sound and rustling were some of the common

complaints.


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AMBIEROD


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FEATURES

Remodeled by ace car designer Dilip Chabria.

Price- Rs.4crore.

Maximum speed-309 kms per hour.

Focuses mainly on Indian youth.


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DANGERS IN R&D

Companies focused only on the theme that technical

research and development will ensure the growth of

the company.

But, lack of experimentation, improvement and

manufacturing cost reduction created inefficienciesand ultimately fails the product.


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FAILURE OF MARUTI GYPSY


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OVERVIEW

Maruti Gypsy was a major player in the car market.

It was one of Indias first sport utility vehicles with

the tagline of, There is a Gypsy in everyone.

But, Gypsy did not changed itself in tune with the

changing industry requirements.


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Contd

Even the company enhanced the power from

975 cc to 1300 cc only after 11 years.

Thus, the product was failed in the market.


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NEWMARUTI GYPSY


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FEATURES

Big tires for jeeps.

1300 cc engine.

New youth look.

Projected as a sports vehicle.


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SHADOW OF OBSOLESCENCE

Threat from substitutes.

Many products and services failed because of:

Lack of upgradation

Under estimation of market scenario

Threats from substitutes or competitors.


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Contd

In essence, the companies believed that there are no

substitutes for its products or services.

But, this underestimation lead to the failure of the

product


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FAILURE OF DOORADARSHAN

TV NETWORK.


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OVERVIEW

Dooradarshan was the only option available to Indian

viewers in 1980s.

It was running successfully with huge hits like

Ramayana, Sreekrishna, Shaktimaan, Jai-Hanuman,

C

hhaya-geet, Malgudi days etc.


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Contd

But this TV network failed because of reasons

like:

Incapabilities in catching up with latest technologies

and trends.

Changing customer tastes.

Tough competition from satellite channels.

Not yet digitalized.


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NEW INITIATIVES


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CAUSES OF MARKETING MYOPIA

Narrow minded approach to marketing situation

where only short ranged goals are considered.

Product oriented rather than customer oriented.

Stepchild treatment to marketing.

-Selling focuses on needs of the seller,

-marketing on the needs of the

buyer.

Excessive focus on Research and Development.


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IMPACTS OF MARKETING MYOPIA

Short sightedness affects the mission in vision of the

company.

Growth gets checked.

Uncertain future.

May lead to the death of the product.


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POSSIBLE LEARNINGS.

A brand exists in the market till it becomes dated,

after that it is virtually impossible to rejuvenate the

brand.

Brand must go to the customers for new ideas.

Rationalize the price in the light of emerging market.


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Contd

Changes in the product along with the change in

market can sustain the brand even in emerging

market.

Best example is Maruti 800, the brand is still

surviving because it made changes along with

changing customer values and demands.


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HOW TO PREVENT MARKET MYOPIA..?

Customer Orientation

Focus on customer rather than on product.

Focus on Marketing

Looking for future opportunities.

Retention of existing customers.


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CONCLUSION

Focusing on the customers satisfaction and

needs, the industry has to re-innovate its

mission, vision and goals.


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