bfbm(11-2015) marketing myopia sayar u tin zan kyaw

Advocate + Refer

Universe

Potential Customer

Prospect

1st Time Customer

2nd Time Customer

Repeat Customer

Most Often

Partner / Life Long

Suspect

Too many one-time only

What is Selling ?

Selling is a straight forward concept which involve

persuading a customer to buy a product.

Definition of marketing is: ‘the provision of

goods or services to meet consumers’ needs.’

What is Marketing?

Successful marketing involves having the right

product available in the right place at the right

time and making sure that the customer is

aware of the product.

Selling Vs Marketing

Selling

o Focus : Sellingo Objective : Converts product into casho Push strategy: Salesmen try to sell as much as they

can

Marketing

o Focus : The Customero Objective : Satisfy customers needs in best

possible wayso Pull strategy: Salesmen capture customers need

MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The Marketing Concept

FactoryExisting

productsSelling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The Selling Concept

Selling and Marketing Concepts Contrasted

Marketing Objective

oVisibility

oAvailability

oAccessibility

oConvenience

oImpulse Purchases

Definition of Marketing

Does it have to be “long run”?

o Involves:

Analyzing customer needs / want

Obtaining customer expectations

Satisfying customer preferences / Conformance / Perceived

Creating and maintaining relationships with customers and suppliers

The 4P’s of Marketing

Let’s Provide Example for each

oProduct = Solution

oPlace = Access

oPrice = Value

oPromotion = Education

THINK OUTSIDE THE BOX

THINKING DIFFERENTLY

Small changes to small things

a waste of time

Is This Essential?

Small changes to big things

necessary, but frustrating

good, but need many

Big changes to big things

the key to growth

Noâ

NecessaryÂ

VITALÂ Â

How do we do it?High Performance Leadership means ...

Individual Practice

and Mindset

Transforming the organization and

aligning the people in order to

dramatically improve the business and

Sustain long-term Momentum

RIGHT AND LEFT BRAIN EXERCISES

( BENCHMARK / THINK BIG )

LEFT

WordsNumbersLogic

RIGHT

ImagesColour

Dreams

Left Thumb Managing

Left Index Reasoning

Left Middle Body Control

Left Ring Linguistic

Left Little Observation

Right Thumb Leadership

Right Index Creating

Right Middle Kinesthetic

Right Ring Listening

Right Little Memory

Brain Mapping

Converting Needs to Wants

o Effective marketing focuses on the benefits resulting from goods

and services

Example: Need for water to satisfy thirst converted to a desire for Pepsi Cola

o Companies must pay attention to what consumers want

Example: Demand for smarter cell phones and wireless services

Avoiding Marketing Myopia

o Marketing Myopia – management’s failure to recognize the

scope of its business

Avoiding Marketing Myopia by Focusing on Benefits

COMPANY MYOPIC DESCRIPTION MARKETING-ORIENTED DESCRIPTION

Aliant “We are telephone company.” “We are a communications company.”

WestJet “We are in the airline business.” “We are in the transportation business.”

Sony “We are in the video game business.” “We are in the entertainment business.”

Avoiding Marketing Myopia Needs, Wants and Demands

Products and Services

Value, Satisfaction, and

Quality

Exchange, Transactions, and

Relationships

Markets

Symbol

Brand name

Presentation

AdvertisingPrice

High quality

Efficient production

Strong R & D

Low cost operation

High service levels

Effective sellingStrong supply chain

Key assets and competencies

What You Can’t See

What You Can See

What Do You See in the Picture?

Wagon LeaderFollowers

Square Wheels

Round WheelsRope

From Transaction-Based Marketing to

Relationship Marketingo Focus is on developing customers into repeat, loyal customers –

increasing the lifetime value of the customero Goal is to move customer up the loyalty ladder:

o Repeat customers are a source of “word-of-mouth” marketing

Advocate Loyal supporter Regular purchaser New customer

UnderstandThe marketplace

And customer needsAnd wants

Design a Customer-driven

Marketing strategy

Construct a Marketing program

That deliversSuperior Value

Build profitableRelationships andCreate customer

delight

Capture value fromCustomers to

Create profits and Customer quality

Marketing Process

“Quality is conformance to customer’s expectation” Juran , Feigenbaum

24

Quality is the ability of a product or service to meet customer needs.

Importance of QualityMarket Gains

Reputation

Volume

Price

Lower Costs

Productivity

Rework/Scrap

Warranty

Increased

Profits

Improved

Quality

The Marketing Concept: What It Is and What It Is Not

Kotler’s Social Definition:

“ Marketing is a social and management

process by which individuals and groups

obtain what they need and want through

creating and exchanging products and value

with others.”

WITHIN FIVE YEARS, IF

YOU’RE IN THE SAME

BUSINESS YOU ARE IN NOW,

YOU’RE GOING TO BE OUT OF

BUSINESS.

Marketing

MYOPIA

Fateful Purposes

Companies went into decline because they did not define their industries

properly

Examples of some successful and unsuccessful companies that were

product-oriented and not customer oriented are:

Railroad ( Goods Moving Vs Transportation)Hollywood ( Movies Vs entertainment)Petroleum ( Oil Vs Energy Business)

Myopia

A clinical condition, also called shortsightedness, when people fail to see

distant object clearly

Marketing Myopia

A short-sighted and inward looking approach to marketing that focuses

on the needs of the company instead of defining the company and its

products in terms of the Nustomers’ Needs and Wants.

Problem: Defining the market

Railroads did not think they are in transportation

Hollywood film did not concentrate on whole

entertainment industry but only movies

Too narrow definition of market prevents foreseeing threats from substitution.

Why industries Growth and Decline?

Growth:o Apparent customers needo No other solution = No substitutes Example: Dry cleaning = Need driven by woolen clothes & having no other solution

Decline:o Other solution to the need becomes availableo The need decreases due to new technology Example: Dry cleaning= Synthetic fiber replaced woolen clothes & availability

of new ultrasound technology to replace previous chemical technology

Decline: Are You Willing to EXITo When market / industry declines, company’s must strive to EXIT it

o EXIT barriers can be emotional o Corner store grocers beaten by supermarketso Companies showed courage

o Other EXIT barrierso When layoff costs are too higho When equipment's can not be reconverted/sold

Myth #1: Growing Population = Growing Industry

o HYPOTHESIS: If the number of consumers grow, sales will also grow = Growing industry

o It is true when there is no substitute for the need o Example: Oil industry

o Example of some disruption/substitution Kerosene lamps by Edison’s electric light bulbOil by natural gas for room heating, even as car fuel

o Innovations may come from outside the own industry

Myth #2: Economies of scale make marketing unnecessary

o Focus of producing more at lower cost

o Focus on selling more. Market offering is just the generic offering /service

o Neglecting the marketing aspects.

Role of marketing is to listen to the customers

The Secrete To Creativity / Intelligence / Scientific Thinking!!!!

Experiences

KnownSee

Listen

Reach

FeelingsEmotions

Understand

Knowledge

CREATIVITY

When you ask creative people how they did something, they feel a

little guilty because they didn’t really do it, they just saw

something.

Think and createtogether newproduct and

services

Clients, users and company staff

Every artist gets asked the question,

“ WHERE DO YOU GET YOUR IDEAS?”

The honest artist answers, “I steal them.”

CONNECTIONS FUEL CREATIVITY

Myth #3: Dangers of R & D

o Superior product will sell by itself

o False hypothesis: Continuous growth is a matter of product innovation

o Product innovation focus: Features of products

o Market offering focus: Satisfy customers need

o Example: Garment Industry in Thailand

To appoint : Fashion Designer / R&D Manager / Brand Manager

Example of Electronics

Organization view itself as making

things, not satisfying the

customers needs

o They focus on how to develop the product (R & D)o Neglect how to sell (Marketing)

Success factoro Customers come to tell them what they needo No need to research customers needs

Conclusions

Identify consumer needs

Physical delivery of the customer satisfaction

Creating the things that achieve the

satisfaction

Find the raw materials to make the product

o An industry is a customer satisfying

process, not a goods producing process

o Management must view business process

as tightly integrated efforts to discover,

create and satisfy customer needs

Understanding Marketing Myopia

o Also can be defined by: Marketing Myopia is narrow minded approach to

a marketing situation where only short-range goal

Can be prevented:

o Product Concept – “ Myopia “

o Marketing Concept – “ No Myopia “

Green Marketing Myopia

Green marketing must satisfy two objectives:

o 1. Improved Environmental Quality. 2. Customer Satisfaction

o Eg: Greenheart Phones – Sony Erricson / Apple / Samsung

Example: I - Kodak

o Kodak film camera: Fall prey to Marketing Myopia

o Sony Digital Camera invaded the market which was a roaring success

Example: II- Sony

o Now it was the turn of Sony (Sony Walkman)

o Apple introduced a innovative product which was a huge success

Avoid Myopia

o Solution Centric focus

o Customer Centric

o Marketing is not only about selling

o Aware of substitutes to the Industry

o Disruptive Innovation

WHAT CUSTOMERS REALLY NEED, WANT AND EXPECT

1. Help

2. Respect and Recognition

3. Comfort, Compassion and Support

4. Empathic Listening

5. Satisfaction

6. Trust

7. Friendly and Smiling Face

8. Understanding

9. Feeling of Importance

10. Quality Product or Service at a Fair Price

Why Pepsi isn’t suffering from Myopia

o Diversification into other markets

The Main Ideas

o To breed growth and avoid myopia: define theindustry

o Product orientation and the overkill of R&D

o “Sellers focus on the needs of the sellers =>marketers focus on the needs of the buyers” (Levitt)

Article Relation to Marketing Decision Making

1. Product orientation

2. Marketing approach

3. Selling approach

4. Mass production

5. Social responsibility

1. Product concept

2. Marketing concept

3. Selling concept

4. Production concept

5. Social marketing concept

Levitt Kotler

The Marketing Myopia

o The marketing myopia to the world market

WHO ARE ALL STAKE HOLDERS?

Investors, Shareholders and Lenders

Customers and Users

Unions

Regulatory Authorities

Joint Venture Partners and

Alliances

STAKE

HOLDERS

EmployeesGovernments

Local Communities and Citizens

Private Organizations

Supply Chain Associates

SOCIAL

COLLABORATION

Today We Will Cover

Social Collaboration Connected Enterprise

“ Collaboration using social technologies for the purpose of intra-organizational learning, sharing, and adapting to change.”

Adapting to a New Connected World @ Work

Past

Enterprise

Enterpriseo Organizational stovepipeso Centralized taxonomieso Locked-down processeso One-way communications

Present

Enterprise

Social Collaborationo Enterprise social networkso User-driven taggingo Working-out-loudo Two-way communications

Social

Collaboration

Customers

Partners

Suppliers

Adapting to a New Connected World @ Work

Future

Enterprise

Connected Enterpriseo Structural changeso Connected employeeso Adaptive social workflowo Transparent communications

Social

Collaboration

Prospects

Competitors

Investors

Clients

Suppliers

Partners

Workforce

Adapting to a New Connected World @ Work

CONNECT THE DOTS

INDIVIDUALS

COMPETE

o priority to the individual over the group

o no shared sense of identity

o pursuing own goals and competing against others

COLLECTIVES

COLLABORATE

o priority to the group over the individual

o members adopt a joint identity

o united them around their shared goal.

CONNECTIVES

COOPERATE

o supports and encourages both simultaneously group and individual

o no shared sense of identity

o members busy pursuing their own goals

Refinement ofIntellectual Components

Derivation ofIntellectual Components

Repetitive Learning

Interpretation of Data

Understanding Data

Collection of Data

SPEAK WITH DATA

Marketing Myopia: Four Myths

o Myth 1: An ever-expanding and more affluent population will ensure our

growth.

o When markets are expanding, we often assume we don’t have to think

imaginatively about our businesses, but instead seek to outdo rivals simply

by improving what we are already doing.

o Example : Drinking Water / Mobile Phone – Accessories / Etc.,

Marketing Myopia: Four Myths

o Myth 2: there is no competitive substitute for our industry’s major

product.

o Believing that our products have no rivals makes our companies

vulnerable to dramatic innovations –often by smaller newer companies

that focus on customer needs rather than the products themselves

o Example: Bank / Airlines / Fuel Station / Rice / Eatable Oil

Marketing Myopia: Four Myths

o Myth 3: We can protect ourselves through mass production.

o While the declining unit costs that come with increased production are

alluring, focusing on mass production emphasizes our company’s needs

when we should be emphasizing our customers’.

o Example : Home Business ( Traditional Food Home Business., )

Marketing Myopia: Four Myths

o Myth 4: Technical R&D will ensure our growth

o When R&D produces breakthrough products, it is critical to remain

focused on customer needs…ideally, new products are both

breakthrough and meet customer needs

o Example : Garment / Soft Drink – Tamarind / Local Sprit – flavour / Open

Retail Business )

Examples: Success

o 1) PEPSI

o Pepsi-cola is a good example where Marketing Myopia is absent.

Other Example:

3) Samsung

4) Apple

5) LG

Examples: Failure

1) Kodak

o Kodak film company is a great example in which marketing

myopia was present.

o Kodak did not view Sony , basically an electronics company, as a

potential competitor.

3) Sonyo “What Apple did to Sony, Sony did to Kodak.”

“ THERE IS ALWAYS AT THE TOP “

Thank You