Marketing Paper Myopia Assignment

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Southern New Hampshire University *

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MBA500

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Feb 20, 2024

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1 MYOPIA PAPER Marketing Paper Myopia Assignment Philip Manders School of Business, Liberty University Author Note Philip W Manders I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Philip Manders. Email: pmanders@liberty.edu

2 MYOPIA PAPER Introduction The classic 1960 paper by Theodore Levitt, "Marketing Myopia," represents a seminal work that profoundly changed how businesses approach marketing strategies. Levitt's insightful analysis and critique of short-sighted marketing practices have remained relevant across decades, influencing not only marketing professionals but also the broader strategic orientations of companies in various industries. This essay delves into the core arguments of Levitt's paper, examining its implications for understanding market disruptions and the importance of customer- centric approaches in contemporary business practices. By dissecting Levitt's assertion that "Creativity is thinking up new things. Innovation is doing new things," we can explore the depth of his argument in the context of avoiding marketing myopia and fostering sustainable growth. Understanding Marketing Myopia At the heart of Levitt's "Marketing Myopia" is the critique of businesses' myopic focus on selling products rather than addressing their customers' broader needs and desires. Levitt argues that companies become vulnerable to obsolescence and competition when they define themselves too narrowly in terms of their products rather than the customer needs they fulfill. This myopic view leads to a failure to adapt to changing market conditions, technological advancements, and shifts in consumer preferences. Levitt uses several examples from industries such as railroads, oil, and manufacturing to illustrate how companies' failure to understand and adapt to broader market needs led to their decline. The railroad industry, for instance, is cited as having been too focused on trains as a mode of transportation rather than seeing itself as part of the broader transportation industry, which includes cars, planes, and other modes of moving people and goods. This limited

3 MYOPIA PAPER perspective prevented the industry from adapting and expanding its services in response to changing consumer needs and technological advancements. The Shift Towards Customer-Centric Marketing Levitt's critique paved the way for a paradigm shift in marketing from product-centric to customer-centric. This shift emphasizes the importance of understanding and fulfilling customers' underlying needs and wants rather than merely pushing products. A customer-centric approach requires companies to engage in continuous market research, remain open to innovation, and adapt their offerings to meet evolving customer demands. Echoing this sentiment, a real-world consequence of neglecting broader societal and environmental needs in pursuit of economic benefits is starkly illustrated by Jack Ma, founder of Alibaba. As cited in Liu et al. (2020), Ma lamented, "Our water has become undrinkable, our food inedible, and our milk poisonous," highlighting the severe repercussions for firms prioritizing short-term gains over long-term sustainability and social responsibility. This contemporary reflection underscores the critical need for businesses to adopt sustainable innovations and a customer-centric focus beyond mere product sales, aligning with Levitt's foundational critique of marketing myopia. Innovation and Creativity in Avoiding Marketing Myopia In avoiding marketing myopia, Theodore Levitt distinguished wheat from the chaff by distinguishing creativity and innovation. He shed light on a crucial insight: it's not enough for companies to be wellsprings of new ideas (creativity); they also need grit and gumption to bring

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4 MYOPIA PAPER these ideas to life (innovation). This distinction is a game-changer because it nudges companies to dream up new product ideas, roll their sleeves, and ensure they resonate with customers' needs, effectively bridging the gap between imagination and reality. Imagine innovation as the courageous act of shaking up existing business models before the competition senses a storm brewing. It's about creating a culture within the organization that tolerates experimentation and celebrates it. It's about seeing failure not as a setback but as a stepping stone towards learning something new. This environment is fertile ground for innovation, where mistakes are not feared but are seen as vital to the learning process. Companies that embrace this ethos find themselves on a thrilling ride. They're not just adapting to changes in the market; they're the ones at the steering wheel, driving the change. They dare to push the boundaries of what's possible, introducing solutions and products that might once have been deemed too bold or ambitious. These companies don't just survive; they thrive, becoming beacons of innovation that redefine their industries. Implications for Market Disruption The concept of marketing myopia is particularly significant in market disruptions. Disruptive innovations often develop from companies identifying unmet customer needs or offering more straightforward, convenient, or affordable solutions than incumbent offerings. These disruptors succeed because they focus on the customer's perspective, leveraging technical advancements and innovative business models to satisfy customer demands better. Reflecting on the intricate balance between immediate and long-term business strategies, Patel et al. (2021) highlight a crucial insight by Levinthal and March (1993): "An organization cannot survive in the long run unless it survives in each of the short runs along the way, and strategies that permit

5 MYOPIA PAPER short-run survival tend to increase long-run vulnerability." This observation underscores the natural tension businesses face in balancing the need for short-term adaptability with the pursuit of long-term sustainability. In this vein, Fehrer (2020) expresses, “Examining our history indicates great diversity in the discipline’s contributions to all parts of the marketing system” (p. 179), emphasizing the necessity for marketing theory and practice to reconnect with a broader understanding of markets and value co-creation. This wider perspective is essential for companies to navigate the complexities of market disruption effectively. By adopting a more holistic view of the marketing system, as Fehrer (2020) suggested, businesses can better anticipate and adapt to the evolving landscape, potentially leading disruptions themselves through innovative solutions deeply rooted in a comprehensive understanding of the market system. Conclusion Theodore Levitt's "Marketing Myopia" offers timeless insights into the pitfalls of product-centric marketing and the importance of maintaining a customer-centric focus. By urging companies to look beyond their immediate products and consider their customers' broader needs, Levitt laid the groundwork for modern marketing approaches emphasizing customer value, continuous innovation, and adaptability. In the face of rapid technological change and market disruptions, Levitt's call for companies to innovate and redefine their industries is more relevant than ever. As businesses prepare to navigate the complexities of market disruption, embracing the lessons of "Marketing Myopia" can provide a strategic advantage, ensuring that they remain focused on what truly matters, fulfilling the evolving needs of their customers.

6 MYOPIA PAPER References Fehrer, J. A. (2020). Rethinking marketing: Back to purpose. AMS Review , 10 (3–4), 179–184. https://doi.org/10.1007/s13162-020-00186-5 Liu, G., Cao, H., & Zhu, G. (2020). Competitive pricing and innovation investment strategies of green products considering firms’ farsightedness and myopia. International Transactions in Operational Research , 28 (2), 839–871. https://doi.org/10.1111/itor.12858 Patel, P. C., Feng, C., & Guedes, M. J. (2021). Marketing capability and New Venture Survival: The role of marketing myopia. Industrial Marketing Management , 93 , 307–326. https://doi.org/10.1016/j.indmarman.2021.01.020 Theodore Levitt. (2008). Marketing Myopia . Harvard Business Review Press.

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