MKTG563 Urumu Dhanalakshmi College Busting the Myopia Myths Essay

Busting the Myopia Myths

  • Essay One: Senior management often assumes that growing sales will always continue to grow. Consider Theodore Levitt assertion that when the market for the product is growing the management tends to stop thinking about the future assuming that the growing market is the indication of future success.
    • Watch the video below and answer the following questions with information contained in the video and any outside resources you find pertinent
    • https://www.youtube.com/watch?v=v0ss6iWYkq8
      • What is Blackberry
      • What was the target market for the product?
      • Why did business users like Blackberry so much?
      • What was the inflexion point that began the descent of Blackberry
  • Essay 2: It is hard to imagine a business thinking itself indispensable as did the railroad industry in the late 19th and early 20th century. The belief that there is no competitive substitution for the industry’s major product can only be seen in industries such as public utilities.
    • Watch this video https://www.youtube.com/watch?v=J9mfUT6ZboQ
    • Given that, how could the public utility such as an electric power company be disrupted? What factors such as massive solar powered battery farms or water pumping stations contemplated i change the nature of power delivery? Most of the discussion in sustainable energy revolves around the engineering. Is this myopic? If you were a utility official, how would you adopt a customer centric view of sustainable energy?
  • Levitt says that management places too much faith in mass production and in the advantages of rapidly declining unit costs as output rises. The classic example of over confidence in the power of mass production comes from Henry Ford and the Model T, the first widely successful mass produced automobile. Ford famously said that you could get the Model-T in any color as long as it was black.
    • But maybe times have changed
    • Considered the following video: https://www.youtube.com/watch?v=4h6adna8D84
    • Given the power of mass customization should we revisit Levitt’s apprehension about over emphasis on mass production?
    • Do the benefits of mass customization out way the costs?
    • In what ways can mass customization become a point of differentiation?
    • Think about our guest speak Steve Frieshata and his company Next Day Blinds. Is this an example of mass customization?
  • Essay 4. Theodore Levitt says in the article, “The greatest danger which faces the glamorous new companies in this field is not that they do not pay enough attention to research and development, but that they pay too much attention to it.”
    • Consider how the founders got their start at Blendtec
    • https://www.youtube.com/watch?v=7vojai6QbuI
    • Their idea is that if they just built the best blender in the world people would flock to it.
    • They were wrong. What false assumptions did they make?
    • In a weird twist of fate, they were able to apply modern marketing to the problem and save the company
    • In what way is this the opposite of marketing myopia?
    • What imaginative approaches did they employ to engage customers?

Do people really need a blender that can destroy an iPhone? What benefit are the customers drawn to? A Blendtec blender costs as much as $400 for the consumer line. Under what circumstances could you see yourself buying one?