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1.0 Introduction
Levitt (1960) defines Marketing Myopia as a narrow perspective in the marketing and business environment. It involves an advertising program that solely concentrates on selling goods or services, disregarding clients' demands or market needs. This approach fosters a culture of immunity and ultimately harms businesses, leading to ineffective commercial practices (Levitt, 1960). Conversely, comprehending customer needs and desires empowers businesses to better fulfill them and improve their operations. According to Levitt (1960), many organizations prioritize production and marketing over other aspects of their business.
2.0 Major shortcomings of the 1980s
According to the case study, Levitt had key failings in marketing as a business practice in 1960. The main failing point was a management failure due to their own myopia. These failings clearly support the argument that they had poor management. Instead of taking action to develop their products for the long term, they focused only on short-term gains, such as petroleum. This short-sighted approach led to worsened rail transport and a lack of customer orientation.
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They did not prioritize their clients' wants and focused more on supply than demand. As a result, their competitors were able to attract their clients.
Other than that, they lack consideration of how the rail road can be implemented in the future. They also fail to consider the importance of developing excellent entertainment skills in Hollywood and instead focus solely on filmmaking. Additionally, they fail to view the product as a whole and instead narrow their focus. For example, they do not regard the petroleum fuel industry as an energy business or Hollywood movies as amusement.
They also fail to view this industry from a marketing perspective. Theodore Levitt defines a misconception in manufacturers who only think about their specific product and overlook the product category. Another key failing point, according to Levitt, is a poor product structure leading to unsuccessful comprehensive product development and a lack of understanding of customer product range, resulting in business failure and poor sales.
Changes and thinking, version 3.0.
The text discusses a shift in ideology and practices from a product orientation to a client orientation. There has been a significant increase in how things are done, as people now envision the future more imaginatively. This change in thinking has influenced marketing, management, and the needs of marketing individuals. The example of the Perils of Petroleum highlights the importance of catering to the needs of investors and utilizing advanced technology in petroleum exploration. The text also mentions the lack of consideration for substitutes, such as natural gas, and emphasizes the significance of petroleum to the economy.
Oil companies have never wanted to use alternatives to petrol or natural gas as fuel. The growth of the oil industry has not been strong, as it is mainly used by the industry itself to power vehicles and machines. Another industry that has seen growth is Dry Cleaning. In the past, it was seen as a luxury service, but now it faces competition due to advancements in synthetic fibers and chemical additives that reduce the need for dry cleaning. The industrial market offers new inventions and business-oriented services, but the industry is becoming increasingly irrelevant to clients, who are seeking new and better substitutes to meet their needs (Jahidur Rahim, 2014).
Furthermore, the electric utility industry is currently undergoing significant changes and growth as it adjusts to meet consumers' evolving demands for electrical devices. This transformation has posed new challenges to outdated companies that were previously focused on products. Similarly, the grocery store industry, including corner grocery stores, has also undergone a major shift. In the 1930s, independent supermarkets faced near extinction due to the aggressive expansion of large food chains.
The first supermarket opened in 1930 in Jamaica, Long Island. By 1933, supermarkets were thriving in Pennsylvania, California, Ohio, and other states. However, a major chain recognized that people were willing to travel long distances and give up personalized service for the convenience and expanded options offered by supermarkets. During the Wholesale and Retail Grocery Markets Nationwide Association Convention in New Jersey in late 1936, it was reassured that there was no need to fear the introduction of new super chain stores and supermarkets. Nevertheless, local grocery stores and their owners were likely to experience a decline in business due to these new competitors. This marked the first time grocery store owners realized that supermarkets not only posed competition within their own market but also had a greater impact than initially underestimated.
4.0 Modern Industry Area
Some industries solely focus on short-term goals. The global petroleum industry encompasses various activities such as oil exploration, refining, transportation (via tankers and pipelines), extraction, and the sale of petroleum products. These products include crude oil and its derivatives, also known as petroleum products, as well as those used in the petrochemical industry. This industry is divided into five sectors: upstream, downstream, ships, pipelines, supplies, and services (Kakada, 2014). It plays a crucial role in worldwide economic development. Crude oil is currently the most important commodity traded in the international market and has been the primary source of energy globally for over a century. The petroleum industry is famous for its cyclical nature and meets more than 70 percent of global energy demand (Unknown, 2014).
The oil and gas industry is a vital component of the worldwide business environment, which has experienced substantial transformations in its structure and organization. The increasing prices have made it essential to carefully manage the supply and demand of products for effective decision-making and strategic planning. Over the last fifty years, significant changes within the industry include introducing a fresh crude oil marketing system, establishing and consolidating state-owned enterprises in oil-producing nations, creating OPEC, nationalizing acquisitions, and embracing new companies.
The industry, like any other industry, has its own operating instructions and specific characteristics. Due to the limited supply of products in this industry, as it relies on non-renewable resources, every ground might not have oil despite the known formation of fossil oil in the world. This may seem contradictory but remains a fact. Thus, significant importance is given to oil, regardless of whether it is discovered or yet to be extracted, as it holds substantial economic value.
In the past, exploration, production, refining, and oil resource management have been heavily influenced by two forms of investment: transnational cartels and foreign companies. Both systems rely on control over oil concessions, even if the resources belong to the host country. Consequently, the rights to exploit these concessions have been transferred to these companies. Throughout the 20th century, this system, greatly impacted by the Second World War, has exerted significant control over industry activities. One defining characteristic of this system is the exclusive power granted to these companies to explore, extract, and export petroleum, preventing other investors from gaining a competitive advantage.
Furthermore, the system permits the entity responsible for overseeing the concession investments within the host country to determine the amount of natural areas available as well as select the desired locations for production levels, production facilities, exploration, and transport capability. While this may seem promising in theory, it remains unclear how tax collection and resource utilization contribute in a concrete manner to the state's role. As a result, the state's authority is further reliant on external factors and less reliant on the concessionaire.
The fiscal relationship between the state and enterprises has become significant. In the long term, companies solely focused on profit margins are not obligated to meet any social, economic, or political requirements set by the host country or the petroleum sector's development. This indicates that investment decision-making and analysis only consider the global economy. In simpler terms, the petroleum sector is isolated from other departments in order to prioritize the economic background of hosting oil companies.
5.0Personal contribution and group dynamic
Collaboration is key to successfully completing this task. My colleagues and I have been working closely together, even burning the midnight oil. We have visited various local places such as public libraries and school libraries to gather references for this task. Additionally, I take notes on important parts of our professor's lectures to ensure that I fully understand the material. To put in extra effort, my group mates and I often stay back in college after classes to study more. We also seek guidance from our instructors and seniors whenever we face difficulties or confusion.
Prior to starting this report, we divided the work and each made a presentation to help one another gain a better understanding of the topic. Specifically, I focused on the first question which pertains to sales as a business observation and Levitt's (1960) perceived problems.
We had two meetings per week to meet each group member for this task. The meetings lasted approximately 1 hour and 40 minutes each. We also used social media platforms such as email and phone calls for discussions during other times. Another group of classmates answered question 2, which focused on how thinking and practice have been influenced since the initial article by Levitt, including his own updated thinking. Meanwhile, another group tackled question 3, which involved choosing a business space, either one mentioned by Levitt in 1960 or another of their choice, and determining whether it is currently acting myopically. They were asked to provide evidence to support their views.
Thanks to hard work and teamwork, I achieved great success while also improving my ability to work with others. I received valuable feedback and incorporated it into my assignments. Additionally, I gained knowledge about business management and the importance of prioritizing customer needs over product focus. Levitt's writings from 1960, such as his predictions about the train, Hollywood, and petroleum industries, have proven to be accurate over the years. This shows that he is a visionary. Overall, it was a great starting point for increasing my marketing knowledge.
6.0 In conclusion,
In conclusion, marketing myopia is a crucial and expansive subject that requires resolution in various aspects. This involves addressing the shortsightedness that many businesses have suffered from and experienced over time. Numerous marketing opportunities have been overlooked or ignored because businesses failed to anticipate or plan for the future success of their business. The reason behind this is their inability to see beyond the present. As a result, these businesses eventually face difficulties as they fail to meet their clients' demands and provide satisfactory services, leading to a decline in customer satisfaction and ultimately forcing them to close down.
Marketing Myopia: A Narrow Perspective Leading to Business Failure. (2016, Aug 22). Retrieved from https://studymoose.com/marketing-myopia-essay
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