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MARKETING MYOPIA
PRESENTED BYGROUP 1
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Contd
Concept by Theodore Levitt in Harvard Business
Review in 1960.
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CONTD..
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 customers need and wants.
In short, marketing myopia means, focusing
products rather than customers.
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MYTHS IN MARKETING MYOPIA
Population myth.
Production myth.
Dangers in R&D.
Threat from substitutes.
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AFFECTED INDUSTRIES
Banking
Automobile
Entertainment
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POPULATION MYTH
In the population myth, it is believed that profits are
assured by an expanding and more affluent
population.
The market also starts expanding and more and more
people started buying the product.
This myth contributed largely to the failure of many
products.
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FAILURE OF
IN FOCUSING CUSTOMER SERVICE
SBI is the largest state owned bank.
It has more than 16000 branches in India and 130
branches overseas.
It provides the range of banking products through its
vast network of branches in India and overseas.
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Contd
But , managing huge population became a serious
threat for SBI.
Lack of focus on customer service and delay in
incorporating computerization worsened the situation.
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SBI SERVICES
Computerization.
Online banking.
ATMs. Retail banking.
Commercial banking.
Life Insurance.
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PRODUCTION MYTH
Concentration of companies only on production or
product.
Belief that companies can protect themselves and
ensure growth through mass production.
Emphasis only on mass production and economics of
scale.
More product oriented, rather than customer oriented.
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AMBASSADOR STRUGGLE FOR SURVIVAL
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OVERVIEW
H
M an Indian automobile manufacturer is a part ofBirla Group of industries.
The company was the largest car manufacturer in
India before the rise of Maruti Udyog Ltd(MUL).
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Contd..
Ambassador Launched in 1958 was known as the first
Indian car, owes its design and technology to British
car model Morris Oxford built by Morris Motor
Company at Oxford, UK.
Ambassador quickly occupied and ruled Indian
Markets from 1958-1980
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AMBASSADOR-SUCCESS STORY.
Ambassador was widely used as a taxicab and as a
government limousine.
It was the only car with Diesel option.
A sturdy car, ideal for Indian Markets.
Perception of being less expensive to maintain. Large spaced.
Over 16% of brand sales came from the Indian
Government.
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REASONS FOR THE BRAND FAILURE.
HM never knew whether they fit in the existing
economy
Ambassador never changed with times. It focused ononly one segment till 1997 and within that time MUL
was able to bring out brands for each segments within
the nation.
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Contd..
HM didnt try to make some changes and upgradesbut overall the look and built-in quality remained the
same.
Ambassador sales dipped badly in the year 2000 but
HM never bothered to rationalized the price of the
brand. Even today it costs over Rs. 4,00,000.
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Contd..
Indica took away the taxi car market and the
customers got a new option for Diesel car with
modern technology.
Immense competition from other major dealers like
MUL, Hyundai etc.
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Contd..
In 2002, Mr. A. B. Vajpai replaced Ambassador with a
BMW Limo, from then on it lost the position of being
the first politicians choice.
The car lacked the quality and refinement. Rattling
sound and rustling were some of the common
complaints.
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AMBIEROD
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FEATURES
Remodeled by ace car designer Dilip Chabria.
Price- Rs.4crore.
Maximum speed-309 kms per hour.
Focuses mainly on Indian youth.
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DANGERS IN R&D
Companies focused only on the theme that technical
research and development will ensure the growth of
the company.
But, lack of experimentation, improvement and
manufacturing cost reduction created inefficienciesand ultimately fails the product.
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FAILURE OF MARUTI GYPSY
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OVERVIEW
Maruti Gypsy was a major player in the car market.
It was one of Indias first sport utility vehicles with
the tagline of, There is a Gypsy in everyone.
But, Gypsy did not changed itself in tune with the
changing industry requirements.
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Contd
Even the company enhanced the power from
975 cc to 1300 cc only after 11 years.
Thus, the product was failed in the market.
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NEWMARUTI GYPSY
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FEATURES
Big tires for jeeps.
1300 cc engine.
New youth look.
Projected as a sports vehicle.
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SHADOW OF OBSOLESCENCE
Threat from substitutes.
Many products and services failed because of:
Lack of upgradation
Under estimation of market scenario
Threats from substitutes or competitors.
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Contd
In essence, the companies believed that there are no
substitutes for its products or services.
But, this underestimation lead to the failure of the
product
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FAILURE OF DOORADARSHAN
TV NETWORK.
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OVERVIEW
Dooradarshan was the only option available to Indian
viewers in 1980s.
It was running successfully with huge hits like
Ramayana, Sreekrishna, Shaktimaan, Jai-Hanuman,
C
hhaya-geet, Malgudi days etc.
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Contd
But this TV network failed because of reasons
like:
Incapabilities in catching up with latest technologies
and trends.
Changing customer tastes.
Tough competition from satellite channels.
Not yet digitalized.
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NEW INITIATIVES
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CAUSES OF MARKETING MYOPIA
Narrow minded approach to marketing situation
where only short ranged goals are considered.
Product oriented rather than customer oriented.
Stepchild treatment to marketing.
-Selling focuses on needs of the seller,
-marketing on the needs of the
buyer.
Excessive focus on Research and Development.
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IMPACTS OF MARKETING MYOPIA
Short sightedness affects the mission in vision of the
company.
Growth gets checked.
Uncertain future.
May lead to the death of the product.
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POSSIBLE LEARNINGS.
A brand exists in the market till it becomes dated,
after that it is virtually impossible to rejuvenate the
brand.
Brand must go to the customers for new ideas.
Rationalize the price in the light of emerging market.
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Contd
Changes in the product along with the change in
market can sustain the brand even in emerging
market.
Best example is Maruti 800, the brand is still
surviving because it made changes along with
changing customer values and demands.
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HOW TO PREVENT MARKET MYOPIA..?
Customer Orientation
Focus on customer rather than on product.
Focus on Marketing
Looking for future opportunities.
Retention of existing customers.
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CONCLUSION
Focusing on the customers satisfaction and
needs, the industry has to re-innovate its
mission, vision and goals.
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