Professor, what is marketing myopia? In today's session, I will explain marketing myopia and the better mousetrap fallacy. Please listen attentively. The term marketing myopia was coined by Professor Theodore Levitt at Harvard Business School in 1960. Professor Levitt pointed out that many companies followed inappropriate short-term vision.
that focuses on the seller's perspective, not the customer's perspective. In this context, myopia refers to the inability to see faraway things. For example, Professor Levitt argued that the decline of the American railroad industry in the mid-20th century was due to marketing myopia. He commented that the reason for the downfall was not a decrease in passengers or freight volumes, but the emergence of alternative transportation modes, such as cars and airplanes, which eroded the railroad's customer base.
At the time, from the limited market point of view, railroad companies considered their roles to be solely about laying tracks and running more trains, without realizing that other modes of transportation would emerge. Similarly, the American petroleum industry was criticized for lacking a customer-oriented perspective. assuming that it would continue to prosper indefinitely, despite the availability of alternatives like incandescent bulbs and natural gas. Like this, Professor Levitt described, the phenomenon of focusing excessively on one's own products or services, disregarding the true needs of customers, and becoming self-absorbed in one's own offerings as marketing myopia. Lately, the meaning of the term marketing myopia has expanded further.
The traditional marketing myopia refers to a marketing approach that focuses on production or product-oriented marketing without consideration for customer needs. But, the new marketing myopia occurs when marketers fail to see the socially-oriented marketing. Accordingly, marketing myopia refers to a narrow-minded approach to marketing that focuses on short-term goals and neglects the broader perspective.
To be an excellent marketer now, you should focus. not only on customer-oriented marketing but also on socially-oriented marketing. Then, what does the better mousetrap fallacy mean, professor? Okay, it is beneficial to familiarize ourselves with the term better mousetrap fallacy, which is similar to marketing myopia. The better mousetrap fallacy refers to the misconception of product-oriented thinking, that is, many managements consider wrongly.
If a company produces a better product than its competitors, the product will automatically sell well. The American poet and philosopher Emerson once said, If you build a better mousetrap, the world will beat a path to your door. However, the flaw lies in the producer-centric thinking of designing splendidly and adding various features to create a better mousetrap. But customers won't simply purchase a better product.
In reality, This producer-centric approach is a fallacy that fails to recognize the customer's perspective. In the 1920s, there were indeed many mice in the United States. A company called Woolworths conducted extensive research and developed a stylish and feature-packed new mousetrap. The new product initially sold well but ultimately failed after a decline in sales.
This is referred to as the better mousetrap fallacy. The value of a mousetrap lies in effectively catching mice, not in creating a pretty and functional better mousetrap. Marketers should not overlook this fact, and that is why the term is widely used in marketing today. Aha! I understand.
Professor, thank you very much.