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Have you ever thought-
Why do companies and products fail?
Why the products and brands which were once in
huge demand; slowly and slowly losing their customer base, one day get totally rejected by their consumers? AMITABH MISHRA (Ph.D.) 5 AMITABH MISHRA (Ph.D.) 6 AMITABH MISHRA (Ph.D.) 7 There may be a huge number of possible reasons of the product failure, such as- Inappropriate marketing mix, Failure to adopt innovation, Fiercely increasing competition, Company’s own resource constraints and disabilities, etc.
However, In the core of most of the possible reasons of product failure there exists the main cause of product failure popularly called “Marketing Myopia”. 8 The term “Myopia” came from originally Ophthalmology, which is the branch of medicine that deals with the diseases of the eyeball and orbit.
9 Myopia, is also known as Near-sightedness or Short- sightedness. It is a condition of eyes where the light focuses in front of retina, instead of on the retina. Occurrence of thiscause, distant objects to be blurry while close objects normal. extreme cases,appear myopia may lead to risk of Inretinal detachment, cataracts, and glaucoma.
10 Blur image
AMITABH MISHRA (Ph.D.) 11
The term “Marketing Myopia” was first coined by
Professor Theodore C. Levitt (1925-2006).
Professor Levitt was faculty of Marketing in ‘Harvard Business School’ of ‘Harvard University’. Marketing Myopia is “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 customer’s need and wants”.
A prolonged ignorance of consumers needs; and a
failure to adopt a consumer centric approach in company’s policy formulation, finally result in failure and rejection of products and may be of the company. This is a universal truth that-
‘All products become obsolete someday and get
replaced by new and better products’.
The basic need of the consumer rarely change, however
the means through which that needs are satisfied (i.e. the products or the wants) certainly change over a period of time”. Professor Levitt, said that companies get trapped in Myopic Situation and become prone to failure because they ignore to ask the vital question-
“What business are we in?”
Product orientation rather than Customer orientation/ Excessive focus on Research and Development. Production orientation rather than Customer orientation. Narrow minded approach to marketing where only short ranged goals are considered. Switch a Production Oriented Philosophy from of a Consumer Oriented marketing to Philosophy of marketing. a Oriented Philosophy of Switch from Product a Oriented Philosophy of marketing to Consumer marketing. Define the business not around specific products. But, around the specific consumer needs the product fulfill. To avoid failure and rejection- The companies and the brands should not get obsessed with the products. They need to understand the fact that ‘the company is not in a business of producing products and
selling them; company is in a business of
satisfying the needs of consumers’.
The consumers don’t purchase a product; they purchase ‘satisfier of their specific need’. The products are just a mean to satisfy particular needs of the consumers. The companies pay much focus on that the products; faces a severe threat of vanished gettingwhen the existing product is replaced by some other product.
However, a company that understands its
business correctly and has a correct definition of it; has better chance to survive even when its present product become outdated. Or
Symptoms
22 o “That could never happen to us” o “We are our own competitors” o “Customers love our or service product regardless of what happens” o “We are unbeatable” o“The consumer is my wife and all she wants is a limitless credit card”
