Summary Marketing Myopia
This article provides basis for how to ensure continuous growth of a company - Summary Marketing Myopia introduction. It also explains the misconception that marketing and selling a product is same thing. In actual both are different in spirit. Selling the product focuses on need of the seller and converting it into cash. While marketing is customer oriented it deals with satisfying the needs of the customers by means of product and the whole cluster of things associated with creating, delivering and finally consuming it. Marketing minded firms tries to create value satisfying goods and services that consumer will want to buy.
Now sustained growth is dependent on how broadly you define your industry and how carefully you gauge your customer’s needs. Many giant companies of past now doesn’t exist because they wrongly defined there industry which led to stop their growth. This is one big point that executives of those big companies missed when identifying there industry. One common mistake by all those industries was they were product focused and main emphasis was selling their product rather satisfying their customers’ needs.
More Essay Examples on Marketing Rubric
Railroads is one example and many other industries made that mistake and now they are no more. Many companies that fail to sustain there growth because they believed in one of the following myths: * As the population of world increase demand of our product will also increase and industry will grow. * Belief that there is no competitive substitute for our industry’s product. * Belief in mass production that cost reduction will ensure increase demand which ultimately make industry grow. Technical research and development will ensure growth as new products will come more and more customers will attract. But in actual none of them worked and reason for that was that all of them were product focused. The myth that increasing population will increase buyers and market expand. This thought forced the manufacturers to not give thought how to expand market. The history of every deed and dying growth shows a self deceiving cycle of bountiful expansion and undetected decay.
Petroleum industry mind set was that increasing population increase product demand but they survived up till now because series of miraculous escapes from obsolescence. Otherwise they were in same danger as railroads. No other industry can substitute our product as petroleum industry thought and if there is some substitute then it will be from within the petroleum industry. This was proved incorrect when incandescent lights replaced kerosene light. This substitute was provided from outside industry.
Mass production must always follow hard thinking about customer. The main focus was reduction of cost and selling maximum number of units. This was one of the major reasons that Ford motor company suffered during hard times they refused to give customer anything but a black car. Research and development is one of the major parts for continuous growth but too much emphasis on it makes it product focus. This idea leads to illusion that superior product will sell it self and continued growth is due to continued product innovation and improvement.
In the end the idea that industry is customer satisfying process not goods producing process is of vital importance for every industry. Only with this idea industries try to produce products that revolve around customer needs. This will lead for increasing demand and hence industry will ensure growth in long run. This can only be achieved once top management realizes exactly what industry they are in and how to make value for consumers. They have to shift their focus from selling to marketing (exchange of value).