Why does some business FAIL?

    Marketing myopia depicts the shortsightedness approach to marketing that focuses on the needs of the company rather than defining the company and its products in terms of the customer’s needs and wants. This myopic culture would pave the way for a business not to succeed. It showed that the mindset of a firm that they are in a “growth industry” leads to contentment and fails to entertain the knowledge of what really the customers want.
It illustrates how a business could do better if they give more concentration on knowing the customer’s needs rather than giving more importance on how to sell their products. The result of the business to fail is because of the myopic attitude of the management and not because the market is saturated.

          The classic example of the industry who exercised the myopic culture is the railroad passenger service. The article stated that railroads did not stop growing because the need for passenger, freight transportation declined or the need was filled by others like cars, trucks, airplanes, even telephones but because they incorrectly positioned themselves in a way that they were only railroad-oriented instead of transportation oriented. The railroad passenger service were the one who take their customers away from them because they failed to give more importance on what really is the need of their customers and gave more focus on their products. They showed a narrow minded approach that led to their breakdown.

Another example of myopic culture is in the case of the marketing strategies of electronics. The marketing here is considered the least important or just a residual activity once the vital job of product creation and production is completed. Its organization is more concerned on researching and developing rather than satisfying customer needs. But engineer- managers knows the realities of the market that consumers are unpredictable, varied, fickle stupid, shortsighted, stubborn, and generally bothersome yet this is not what they say even for the fact that this is what they believe. This scenario of electronics industry is the same with oil industry since they give more focus on getting information which is designed to help the oil companies improve their existing ways such as effective sales promotion and more convincing advertising themes. And nobody seemed to give more time on investigating deeply into the basic human needs in order to give customer satisfaction. This shows that electronic and oil industry management is looking in the opposite direction such as researching and selling activities rather than to think of taking care of their customer needs.

           In conclusion, for the companies to continue growing, they must ascertain and act on their customers’ needs and desires and not to bank on the presumptive longevity of their product. By doing so, the companies must build an organization that must view as a customer-creating and customer-satisfying group.  Hence the management must think of itself not as producing products but as providing customer-creating value satisfactions.


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5 comments:

  1. The customer is the business' blood line so they must adhere or cater to what the customers really need to stay afloat and strong.

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  2. I think for every business, it is the customer's needs that matter. They are the ones who patronize your products, so the business should concentrate on catering to their needs.

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  3. I could agree with you more, companies should always think of what the customers would want and prefer something that would help them out and not too expensive that they can't afford to buy it

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  4. Not all individual are born businessman, That is what my Chinese friends used to tell me. Great read here.

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  5. I guess we're guilty of committing marketing myopia, too, when hubby and I got into a business out of haste. The result, we had to close the business after just a month of operation. Sigh! We've learned it the hard way.

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