They focused on products instead of customer requirements. This lack of vision and the customer dissatisfaction paved the way for the success of the auto industry on the highways. Further, the construction of super highways has created better medium for freight and passenger traffic, posing a formidable competition for the railways.
Similarly, when small cars were introduced in the US market by Japanese companies, they became a hit in the first year of their introduction. Though there had been major researches going on for a long time in the US, none of them were able to find out what exactly the customers wanted. They focused on what was the best alternative available for a customer of the available options. They totally ignored customer requirements. Their researches focused on the product, not on customer requirements.
Marketing Myopia occurs when a marketer is excessively preoccupied with product development, manufacturing or selling and ignores customer needs wants and interests. Marketing is a long-term function that involves anticipating a change in the future, and planning for it accordingly (Saxena, 1997).
Another example that is apt quoting in this context of marketing myopia is that of the pager industry and radio broadcasting. Pager companies could not foresee technology changes and changing customer expectations and adapt themselves to fulfil customer expectations while mobile companies fulfilled the needs and succeeded in the market. Most companies that did not consider customers’ needs and preferences have suffered losses.
With the changing times, a good marketer needs the vision to be on top of the changes and trends. Theodore Levitt in his book The Marketing Imagination has cited four conditions for business obsolescence as a result of marketing myopia. The following are the conditions:
1. The belief of