The basic motive of every company to get into business is to generate revenue and profit by selling their products to consumers. Although most of the companies claim to be consumer-centric, very few of them actually deliver goods demanded by the market and the consumers. Companies want consumers who will stay loyal to their products no matter what. But what is the organization doing to cater to the consumer needs? Is it producing commodities that are demanded by the market? Is it taking any effort to maintain healthy relationship with their consumers?
Just like in medicine, myopia refers to short-sightedness, marketing myopia refers to practices that are nearsighted rather than far-reaching. Marketing myopia means a company implements strategies that will surely give them short-term profit, but which fails to overlook the long-term profit. This type of marketing focuses on what the company wants, rather than paying attention to and delivering what the market wants. This in turns builds a culture which is difficult to change and results in irrecoverable losses, and along the process the company reputation is tarnished. Theodore Levitt wrote and submitted a paper with the same title in a journal Harvard Business Review for which he was an editor.
► Lack of competition is another cause of marketing myopia. If organizations hold monopoly in a certain area and they think they are irreplaceable, they are doomed.
Example 2: Hollywood was busy producing films, which is only a small part of the entertainment sector.
► Emphasizing more on selling than marketing. Selling is when a producer wants to sell his product to get cash in return. Marketing is satisfying the needs of their customers via product and other things related to it such as creation, delivery, etc.
► Invest more in research and development to manufacture new products according to the customer's liking. Give an answer to their demand. You can utilize various tests in a small group to find out if it is a potential product or not.
► To avoid marketing myopia, organizations should diversify their products. Successful business empires proved that diversification is really important for a business to grow and survive in the market.
Example 2: Nike Inc. also diversified its business and now are one of the leaders in the apparel and sports gear business.
One of the main causes of this problem is when organizations puts in effort to develop marketing strategies for the wrong target group. Consumers in the market have different perceptions about the advertisements, since they come from different cultures, age, group, and sex. For some, the promotional technique may be offensive and hence the company will lose out on that particular group. The failure of an organization lies at the top management, the executives are the ones who deal with the policies and rules.