Marketing Myopia — a term coined by American economist Theodore Levitt, professor at Harvard Business School and editor of the authoritative business publication Harvard Business Review, in an article with the same name, which became a sensation in the business community in 60s. It this article Levitt argued that the reason that the most successful companies collapsed is the inability to see beyond the boundaries of their own business.
According to him, large enterprises are too focused on their own products and their production, while the emphasis should shift to the target audience and its environment.
As an effective resourse against such short-sightedness Levitt proposed a theory of 4 P (Product, Price, Place, Promotion) marketing, which eventually was developed and supplemented. Moreover, today, experts recommend periodic evaluation and analysis of the commercial activities of the company, using the so-called formula «7 P».
7 P include:
Because everything in our world — products, markets, customers and their needs — are in constant motion, from time to time it is good to check their expectations and plans with a reality for each of the criteria.
In order to have an objective picture of the sight of your own business, you should approach your product from the perspective of a third-party auditor or consultant and honestly answer the question «How our product / service / product mix and services is meet the requirements of the market and consumers? »
Just a few questions to assess marketing strategies: What from the services and products that we offer to our customers, we would not launch, having today’s knowledge and experience? Whether our services are superior to that offered by competitors, so in what? If not — is it possible to fix it? Perhaps all of this product should be discarded, and look for new directions of development?
The second «P» in the formula of effective marketing — is the Price. This factor must be subjected to constant review to meet the current market situation. Sometimes it is necessary to reduce, and in some cases, on the contrary, it requires increasing of a price. Many companies were forced to admit the unprofitability of a product or service, considering resources, which was invested in its production. Increasing of its value threatened them with the loss of customers, but the remainder of the income guarantee not only the covering of all costs, but also provides a profit.
Sometimes terms of sale require review. Do not forget about special offers and promotions, and do not underestimate the free bonuses, the provision of which costs a penny, but makes customers look at the price of a product or service different eyes.
The third habit that would be nice to develop for a successful business — it is the continuous promotional activity of the product or service. Promotion means the whole complex of measures by using which the potential consumers receive information about the product, as well as the resources that allows bring it into the market and increase sales.
The main thing to remember: Do not reject the essence reject the form. Change the form and the essence will start to shine! Sometimes a pair of seemingly insignificant changes in the concept of product promotion is enough to make radical changes in its results. Even a slight adjustment of the advertising campaign can lead to a significant increase in sales. Skilled copywriters achieve 500% increase in the effectiveness of advertising, simply by changing a few words in a slogan.
Big and small companies in oil and gas, transport and cosmetic industries constantly experimenting with a variety of advertising and marketing tools to find the most reliable and efficient. However, the truth of life — and business — is that sooner or later, even the most brilliant advertising trick stops working. Sometimes this is for obvious and objective reasons, and sometimes this decline seems unreasonable effectiveness. In any case, in order not to be unarmed in front of this situation, it is necessary to constantly work on your own marketing campaign, to seek new forms and methods of promoting the brand, product, service.
The fourth «P» marketing formula — a space where they sell a particular product or service. Place of sales or in other words the meeting point of the buyer and seller is crucial. It can be anywhere. Some people prefer direct sales, sending managers to the meetings and negotiations with potential customers. Someone chooses telemarketing and directories. Someone — the fair or terms of retail sales. There are those who combine all of these sales channels.
However, even the most successful options should occasionally be criticized: Is that a full information about the product or service, which is received by the client? Can I somehow improve the aesthetic component of this space? How to change the sales to increase the loyalty of the target audience?
The fifth is an integral component of a successful marketing — packaging. Experts strongly recommend from time to time to look at the outer side of the product through the eyes of buyers critically and impartially. As the old aphorism as the world — you never get a second chance to make a first impression. As well as your product or service. The overall impression of the brand develops within the first 30 seconds of the first meeting with his visual component. In most cases, this is packaging. New packaging or the overall appearance of your product or service can significantly change the perception of your customers.
Developing product’s packaging it is not enough to limit yourself by the only first impression. It must be remembered that it will accompany the product throughout its communication with the target audience.
Packaging — is that «prints» the goods to the outside world, packaging — is how the staff and the whole company look, and how to look its offices, work spaces, exhibition spaces, brochures, it is how business correspondence of the company is framed, its output and internal documents, it is the whole visual brand identity. Here, everything has meaning. Any item can be harmful or beneficial. Any little thing can affect the client’s decision with regard to working with you.
The following components of success — is a positioning. How does a brand positioned in the minds of customers? What people think about the product, discussing it? What do they say about the company as a whole? What niche you occupy in the market, and with what key words you can define the company and its mission? What is behind your product, brand, and company?
In his acclaimed book «Positioning» Ole Rise and Jack Trout, emphasize that the way customers see your company and what they think about it – is the main condition for competitiveness in today’s marketplace. According to the theory of the attribute, the majority of consumers can express their perception of a company or a brand with one narrative structure, with positive or negative sense. For example, the «service». Or «excellent.» Or «quality engineering» — usually perceived as Mercedes Benz. And talk about BMW as «the limitless possibilities of speed.»
Finally yet importantly «P» of marketing — staff. All the people working on your company and ensure its communication with the target audience, should be regarded as a significant factor in the success of your business.
Very often, this component of marketing is underestimated even by very advanced companies which pay more attention to all items «magnificent seven» without exception and forgets how many decisions are made on a daily basis by each of the employees and company representatives.
According to Jim Collins, author of the bestseller «Good to Great», one of the main challenges that develops every leader — it is how to put the right people on your bus and how to make those go with whom he is not on the way. And if all the people you already have on board, you must see to it that they took their seats. Thousands of thousands of brilliant business projects and gathering dust on the shelves, waiting for implementation, simply because until now there were no people who would be able to realize them.