Essay About Theodore Levitt And Mass Production

Marketing Myopia
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Marketing Myopia[pic 1]Marketing MyopiaRoopika InjarapuInternational Technological UniversityAbstractMarketing Myopia is a term used in marketing which was written by Theodore Levitt. This paper reviews articles written by Amy Galo and Theodore Levitt on Marketing Myopia. It is also about marketing and strategies also. The main idea is organization businesses will do better when they concentrate on customer needs rather on selling their products. Failure in management of is the reason companies usually stop to grow. This is widely thought to be consequences of a saturated market. But in real it’s because of Myopia.Marketing MyopiaMarketing Myopia can be defined as short sighted and inward-looking approach to marketing that focuses on the needs of the organization instead of defining the organization and its products in terms of the customer’s needs and wants. Theodore Levitt ViewsLevitt gives us different examples to help us understand myopia.Example 1: Railroads were only railroad oriented. Perhaps if they were considered them as transportation oriented then they wouldn’t have been in trouble now. They declined because of their own myopia but not because of cars, trucks, airplanes or even telephones.Example 2: Hollywood never stepping into TV came as a big blow for it driving not to expand itself. Meaning they only concentrated on producing films instead of entertainments.The four steps that helps organizations not go into myopic views are;Growth is assured by an expanding and more affluent population.There is no competitive substitute for the industry’s major product.Too much faith in mass production and in the advantages of rapidly declining unit costs as output rises.Preoccupation with a product that lends itself to carefully controlled scientific experimentation, improvement, and manufacturing cost reduction. The first three points tells us that concentrating on mass production is selling, not marketing. It’s a common misnomer that profit resides in low-cost full productions. Thereby, proving that marketing effort is viewed as a necessary consequence of the product. To explain this Levitt explains with the Henry Ford example. Where Henry Ford decided to reduce the price of his cars to $500 he made the best marketing strategy of his time. Mass production indeed was the plan but it followed the hard thinking about the customer. So, low prices were not the cause for him to sell millions of cars. Instead it was the mass production of the cars that made him get major profits.In conclusion Levitt tells us how organizations go into a state of extinction in a very short span of time or are restored by other organizations whose products rely on theirs. He explains the four steps companies have to take to ensure they don’t catch myopia.Own examplesIntel: Its also a good example of why you need to be brutally objective in your view of your product line or it can kill you. Intel never went beyond manufacturing chips until recently. They did realize and acted on quickly.Amy Gallo’s Views