Marketing Myopia

Lack of discernment or long-range perspective in thinking or planning

Vision of most organizations is too constricted by narrow understanding of what
business they are in

Product Orientated
Define yourself based on a single product, "one product business"
Self Deceiving Cycle

Population Myth, Idea of Indispensability, Production Pressures, Dangers of

Research and development
Population Myth

Growth is assured by an expanding and more affluent population

Idea of Indispensability

No sub for product

Production Pressures

Too much faith in declining costs with growth

Dangers of Research and Development

Focus too much on products instead of markets

The Better Mousetrap, Old Adage
Thinking your "superior" product will be in high demand
Value=
Customer's perceived benefits - Costs
Subjective assessment of benefits relative to costs
Marketing
Creating, distributing, promoting, and pricing products to facilitate satisfying
exchange relationships with customers and to develop and maintain favorable
relationships with stakeholders in a dynamic environment
Products
Goods, services, and ideas
Customers
Purchasers of the products that organizations develop, promote, distribute, and
price
Focal point of all marketing activities
Target Market
A specific group of customers on whom an organization focuses its marketing
efforts
Marketing Mix
Product, Pricing, Distribution, Promotion that a firm can control to meet the needs
of customers within its target market
Product Variable
Deals with researching customer needs and wants and designing a product that
satisfies them
Creating and modifying brand names
Distribution Variable
Make products available in quantities desired to as many target market customers
as possible while minimizing Inventory, Transportation, Storage
Promotion Variable
Relates to activities used to inform individuals or groups about the organization and
its products
Price Variable
Relates to decisions and actions associated with establishing pricing objectives
and policies and determining product prices
Exchanges
Provision of transfer of goods, services, or ideas in return for something of value
Stakeholders
Anyone who has stake in a company
Customers, Employees, Investors
Marketing Enviornment
Competitive, economic, political, legal and regulatory, technological, and
sociocultural forces that surround the customer and affect the marketing
Marketing Concept
An organization should try to provide products that satisfy customers' needs
through a coordinated set of activities that also allows the organization to achieve
its goals
Product, Sales, and Marking Orientation
Customer relationship management (CRM)
Using information about customers to create marketing strategies that develop and
sustain desirable customer relationships
3 ways profits can be obained
By acquiring new customers
By enhancing the profitability of existing customers
By extending the duration of customer relationships
Relationship Marketing
Long-term mutually beneficial buyer/seller relationships
Customer lifetime value
Predicts the net value (profit or loss) for the future relationship with a customer
Market Orientation
An organization wide commitment to researching and responding to customer
needs