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Essays Marketing Myopia By Theodore Levitt

Marketing Myopia: Theodore Levitt Essay

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Running head: MARKETING MYOPIA: THEODORE LEVITT

Marketing Myopia: Theodore Levitt

University of Phoenix

Marketing Myopia

In Theodore Levitt's article, "Marketing Myopia" (1975), the concept of marketing was widened by examining the history of failed industries doomed to fail eventually. Industries failed to continue their growth not because of a saturated market but failure of proper management. They did not realize the need of expanding into areas in which they were already familiar. Levitt used the railroads as an example because railroads were not focusing on other modes of transportation such as cars and planes, and ships. The railroads only wanted to think of rail transport. Levitt also used other examples such as Hollywood not defining itself correctly, thinking they were a movie business instead of an entertainment business. When TV came out, it almost destroyed Hollywood because of their myopic marketing. The major problem with these industries was the issue of product orientation rather than customer-oriented. To survive, their products and services had to be marketed differently according to the customers' needs. According to Levitt's research, companies go out of business because they take the customer and market for granted. Businesses must not remain stagnate but must constantly change as the market and its needs change if they want to stay in business.

Levitt argues his first point-of-view on the shadow of obsolescence and that "there is no such thing as a growth industry," but growth opportunities. Levitt termed the stagnation of growth industry as a self-deceiving cycle. Within this cycle, there are warning signs that tell if an industry will fail. The first sign is the population myth; the belief that a rise in population "growth is assured by an expanding and more affluent population" does not necessarily mean a rise in the demand of what a particular industry is offering. If the population increases and more people are buying products or services does not mean the business will sustain growth. For example because of unknown reasons, a product may take over in demand such as provided by the petroleum industry. To save themselves, they expanded their sales only from gasoline to complete crude oil products. Another sign of a self-deceiving cycle is the idea of indispensability, believing "there is no competitive substitute for the industry's major product." Because we live in an ever-changing world;...

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Essay about Marketing Myopia

779 WordsApr 6th, 20154 Pages

Marketing Myopia: Marketing Myopia suggests that businesses will do better in the end if they concentrate on meeting customers’ needs rather than on selling products. The mistake of paying more attention to products a company offers than to the benefits and experiences produced by these products.
The term 'marketing myopia' was first expressed in a famous article of the same name written by Theodore Levitt for the Harvard Business Review in 1960. In 'Marketing Myopia,' Levitt argued that many companies incorrectly take a shortsighted approach to marketing, viewing it as merely a tool for selling products. Instead, he argued that companies should look at marketing from the consumer's point of view. For example, a company that sells…show more content…

This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. The Marketing Concept. This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The Marketing Concept represents the major change in today’s company orientation that provides the foundation to achieve competitive advantage. This philosophy is the foundation of consultative selling.
The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability. Distinctions between the Sales Concept and the Marketing Concept:

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