Marketing Myopia and the Better Mousetrap Fallacy

Introduction

• Lecture on marketing myopia and the better mousetrap fallacy.
• Coined by Professor Theodore Levitt at Harvard Business School in 1960.

Marketing Myopia

• Definition:

  • A short-term vision focusing on the seller's perspective rather than the customer's perspective.
  • Refers to the inability to see beyond immediate needs and trends.

• Historical Example:

  • Decline of the American railroad industry in mid-20th century.
    • Not due to decreased passengers or freight but emergence of alternatives (cars, airplanes).
    • Railroad companies failed to recognize changing transportation habits.

• Criticism of Industries:

  • American petroleum industry didn't foresee competition from alternatives like incandescent bulbs and natural gas.

• Characteristics of Marketing Myopia:

  • Focus on own products/services.
  • Lack of understanding of true customer needs.
  • Excessive self-absorption in offerings.

• Evolution of the Term:

  • Traditional myopia: Focuses on production/product-oriented marketing.
  • New myopia: Fails to see socially-oriented marketing.

• Conclusion:

  • Modern marketers must adopt both customer-oriented and socially-oriented marketing strategies.

Better Mousetrap Fallacy

• Definition:

  • Misconception that producing a better product guarantees sales success.
  • Similar to marketing myopia, as it stems from producer-centric thinking.

• Famous Quote:

  • "If you build a better mousetrap, the world will beat a path to your door." - Ralph Waldo Emerson.

• Historical Example:

  • Woolworths developed a stylish, feature-packed mousetrap in the 1920s.
    • Initial sales success but ultimately failed due to declining sales.

• Key Insight:

  • Value lies in functionality (effectively catching mice), not just aesthetics or features.
  • Marketers must understand customer needs to avoid this fallacy.