Article Presentation

By Group 2 -:•Apoorv Parmar•Shreya Mahajan•Kushaang Deswal•Chirag Gaba•Siddharth Sharma•Pulkit Kapoor

MARKETING MYOPIA

PRODUCT SHOULD BE A CONSEQUENCE OF MARKETING AND

NOT OPPOSITE

FOCUS NOT ON CUSTOMER NEEDS AND ON SELLING

PRODUCTS

SHORTSIGHTED APPROACH TO MARKETING

GROWTH INDUSTRIES CAME

DOWN DUE TO ADAMANCY TO

CHANGE

Shadow of obsolescenceIt is assumed that an industry qualifies as growth industry by

superior and unbeatable product but still many industries failedor replaced by a substitute.

Examples-DRY CLEANING

ELECTRONICS INDUSTRY

Population Myth

Asking for TroubleIdea of IndispensabilityUncertain Future

• The belief that profits are assured by an ever expanding and more affluent population is dear to heart of every industry.

• If consumers are multiplying and also buying more of your products or service, You can face the future with considerably more comfort than if the market is shrinking.

Asking for Trouble• The efficiency of getting and making its product, not really on improving

the generic product or its marketing.• Major innovation in automobile fuel market are originated by small new

oil companies that are not primarily preoccupied with production or refining.

• Thus, the oil industry is asking for trouble from outsiders.

Idea of Indispensability• The petroleum industry is pretty much persuaded that there is no

competitive substitute for its major product, gasoline – or if there is, that it will continue to be a derivative of crude oil, such as diesel fuel or kerosene jet fuel

Uncertain Future

• There is no guarantee against product obsolescence.• If a company’s own research does not make it obsolete, another’s will.• Unless the company is lucky as oil has been till now, it can easily go down

in a sea of red figures - just as the railroads, big movie companies and many more industries have.

• The promise of lightning the world’s lamps gave rise to an extravagant promise of growth.In the days of kerosene lamp, the oil companies competed with each other trying to improve the illuminating characteristics of kerosene.

Then suddenly the impossible happened...

Edison Invented Bulb

Production PressuresWhy do companies MASS PRODUCE ?> More Output> Decline in Unit Costs.> Profit prospects look spectacular.

Cons of Mass production> All efforts are focused on production.> Focus on SELLING rather than MARKETING .> Marketing gets ignored.

Mass production in automobile industry• In this industry mass production is most famous , most honored .

• The industry has hitched its fortune to relentless requirements of the annual

model change, a policy that makes CUSTOMER ORIENTATION an especially

urgent necessity.

• Automobile companies spend millions of dollars on consumer research .

LAG IN DETROIT

• The fact that the new compact cars are selling so well in their first year indicates

that Detroit's vast searches have failed for a long time to reveal customer needs.

• Detroit was not persuaded that he wanted anything different from what he had

been getting until it lost millions of customers to other small car manufacturers.

Product Provincialism Product provincialism happens when a company defines itself

based on the product and not on the industry and when this happens no amount of product improvement can starve off its death sentence.

e.g

BUGGY WHIP INDUSTRY - If they would have defined themselves as being in the transportation

industry rather than the buggy whip business , they may have survived. It would have done what survival entails , that is , CHANGING .

There are plenty of such examples like the oil industry etc.

DANGERS OF R & D

CAUTION

JO DIKHTA HAI WAHI BIKTA HAI

What is Research and Development?

OF PRODUCTS AND PROCEDURES

INNOVATION INTRODUCTION DEVELOPMENTIMPROVEMENT

Should R & D be done in excess while keeping essentialMarketing at stake?

BUT

Probable reasons for doing excessive R & D……1. Introversion

2. It is hard to tackle clients as they can be : Unpredictable Varied Fickle Stubborn

3. More focus on job roles which can be controlled

4. Comfortable and Familiar working environment adding on to Ease of Job --Especially Software Engineers …….

Work from home is a blessing

Effects of ignoring Marketing and preferring excessive Research

1. Focus drifts from customers to product.

2. Companies live dangerously under an illusion that their top notch products will succeed regardless of no marketing.

3. They prioritize what they wish to and can sell regardless of what customers actually need.

4. Thus, slowly leading to a Creative Destruction.

In spite of 70% market share as a search engine globally, Google spends extensivelyon its marketing… a whooping amount of nearly $10 billion annually.

Leading by example

THANK YOU