What do Xerox, Blockbuster and Kodak all have in common? They focused too much on selling their product or services and didn't spend enough time understanding their customer's needs.
The bottom line is they went out of business.
Further, they failed to ask themselves this key question, "What business are we really in?"
In 1960 Harvard Business professor Theodore Levitt wrote an article identifying this phenomenon. He then coined the phrase Marketing Myopia. He stated that you have to focus on what your customers want so that you do not become nearsighted and lose touch with their needs. More importantly, you can't put the company first. As Levitt used to tell his students, "People don't want a quarter-inch drill. They want a quarter-inch hole!"
Still relevant today
Marketing myopia remains an important reminder of your company's risks if you don't pay close attention to your consumers' needs. Levitt says that if a company is "nearsighted" and only focuses on selling products and services, it will run into trouble. Instead, you must focus on the "big picture" of what your consumers want.
A company needs to ask itself this question, "How can my product (or service) fulfill my customer's need, not just sell to them?
Levitt describes myopia as a lack of insight into what a business does for its customers. Organizations invest so much time, energy, and money in what they currently do that they're often blind to the future. They get lulled into thinking they're in a "growth industry," which, according to Levitt, doesn't exist. Instead, there are only companies continuously capitalizing on growth opportunities.
4 Causes of Marketing Myopia
As a business owner, you need to be aware of what causes marketing myopia, it can help prevent poor decision-making. Some common roots of marketing myopia include:
- A business only anticipates growth. Some companies may believe they are in a growth industry or that their product lines have no competitive substitutes in the market. This leads to a false sense of security, and if the product becomes less desirable over time, the business will profit as the products decrease in demand. Failing to think of the long term, a company must craft a new business strategy to recoup revenue.
- A company lacks clear goals. A successful company should have clear short-term and long-term goals for success and growth. When a small business or company neglects to think about long-term growth strategies and business goals, they focus only on decisions that benefit them in the short term.
- Leaders want fast results or quick wins. Companies and start-ups may prioritize short-term goals to increase their numbers to validate their business, secure funding, and drive immediate revenue.
- Owners will skew the data. Employees feel pressure from leaders or higher-ups to produce data showing their successful marketing concepts. Teams that feel pressure to perform well may make decisions that show positive results from their marketing efforts in the short term, neglecting to consider the longer-term impact.
6 Ways Avoid Marketing Myopia
The simplest way to avoid marketing myopia is by focusing on what your customer really wants. As Theodore Levitt himself said, "people don't want to buy a quarter-inch drill; they want a quarter-inch hole."
Here is what you can do to avoid marketing myopia:
Have a clear vision. How can this product or service make a difference now and in the future?
Put the customer before the product. Develop a customer-centric culture in your company and make sure your product or service is solving their problems.
Do the marketing first. Throughout history, people have found a way to make a product or service, then figure out how to sell it later. Snake oil salesmen are a great example. The most successful companies determine what people want first, then produce that product or service.
Don't stop the marketing. It's essential to continue market research even after a product launch. Find out what people like, dislike, and want to see in the next iteration.
Watch the competition. Competing brands represent some of the most relevant industry expertise, making them both a threat and a resource. Learn from their failure and success, all while working to stay a step ahead.
Diversify your products or services. Don't just meet one need– find different ways to offer additional products or services.
Marketing Myopia Examples
1. BlockBuster
In the early 2000s, Blockbuster was the undisputed king of the video rental industry. But by 2009, the company had filed for bankruptcy. What went wrong?
Experts believe that Blockbuster's downfall was due to marketing myopia. The company was so focused on the existing business model that it failed to adapt to the changing marketplace.
As streaming services like Netflix and Hulu became more popular, Blockbuster refused to embrace them. Instead, they clung to their brick-and-mortar stores and DVD rentals, which eventually became obsolete.
2. Kodak
Kodak is another example of a company that fell victim to marketing myopia. For years, Kodak was the leading name in photography. But as digital cameras became more popular, Kodak failed to adapt.
The company focused on film and prints, even as its customer base shifted to digital. As a result, they lost market share and eventually filed for bankruptcy in 2012.
