Marketing Myopia: Focusing on the bird in the bush
Marketing myopia is a term used to describe the short sighted approach taken by organizations which often leads to their downfall. The term was documented by Theodore Levitt in a paper by the same name published in the Harvard Business Review in 1960. The paper has been touted by several experts as the initiator of the modern marketing era. It laid to rest popular myths and proposed a vision for the modern CEO, one successfully implemented by the biggest corporate organizations in existence today.
Levitt’s theory was that most organizations are restricted in thought and action with respect to their vision and future plan. The world was still in the ‘selling concept’, where the idea was to increase production and force sell to the customer. Short term profit was the popular mantra. Organizations were not willing to see the bigger picture. This form of marketing could bring in some profits in the short run; however, over time, this led to customer dissatisfaction, brand switching, dwindling sales, and ultimately, closure. Levitt advised CEOs to widen their horizons, redefine their corporate intentions, and most importantly have a vision. The idea was to rise from a product level to an industry level and if possible, to a generic level. The idea was well received and organizations realized what they were missing all along- a well defined vision.Levitt had used the example of oil companies several times in his publication. According to him, at a generic level, the oil companies were in the business of providing energy, and not petroleum, as was the norm then. This simple redefinition revolutionized the industry, which is one of the most profitable ones today.
The lesson to be learnt is that out of the box thinking is what is required to drive a business. One has to get out of the comfort zone and explore the unknown. If performance in a particular niche is good, a mental image of niche extensions needs to be formed. Once this is done, the next step would be to capture a segment, then a market, and finally an industry. Predictions may not always come true, but built on the basis of logic, they can provide the foundation to a flourishing business in the long run.
