Topic of discussion: Marketing myopia and the better mousetrap fallacy
Importance of understanding these concepts for effective marketing.
Marketing Myopia
Definition:
Coined by Professor Theodore Levitt in 1960 at Harvard Business School.
Refers to a short-term vision focusing on the seller's perspective rather than the customer's perspective.
Key Characteristics:
Inability to see beyond immediate sales and products.
Focus on production or product-oriented marketing without considering customer needs.
Examples:
American Railroad Industry:
Declined not because of fewer passengers, but due to alternatives like cars and airplanes.
Railroad companies viewed their role narrowly as just running trains without adapting to market changes.
American Petroleum Industry:
Criticized for assuming perpetual success, ignoring alternatives like incandescent bulbs and natural gas.
Evolution of the Term:
Traditional marketing myopia: Focus on products without customer consideration.
New marketing myopia: Involves neglecting socially oriented marketing.
Conclusion:
Marketers should adopt a broader perspective that includes customer-oriented and socially-oriented marketing.
Better Mousetrap Fallacy
Definition:
Misconception that a better product will automatically sell well if produced.
Key Points:
Originated from Emerson's quote about building a better mousetrap.
Fallacy arises from producer-centric thinking: designing better products without understanding customer needs.
Example:
Woolworth's developed a stylish, feature-rich mousetrap that initially sold well but ultimately failed due to a lack of understanding of customer needs.
Value of a mousetrap lies in its ability to catch mice, not just being aesthetically pleasing.
Conclusion
Importance of focusing on customer perspective in marketing strategies.
Avoiding pitfalls of marketing myopia and the better mousetrap fallacy is essential for long-term success.