Marketing Myopia

From the word "Myopia" - lack of foresight or discernment - it was noted that most industries, particularly successful companies, are relatively declining, not only because of the market saturation or product obsolescence, rather, due to lack of good management decisions. As market saturation or increase in demand for innovation take place, product obsolescence may easily occur. However, good management will always know how to satisfy customer needs and wants considering the situation of saturation and obsolescence.

There's no such thing as a growth industry, however, there are companies which were organized and operated to create and invest on growth opportunities. As the population increase, it is probable, but not definite, that demand will also increase. Apparently, the management would tend to be at ease with the current opportunity of expansion of market without seemingly discerning on product improvement or development. Because of this, competition and threat from outside factors enter the market. When great innovations occur from outsiders, the customers will be influenced by these changes; well in fact, this could have been done by the pioneers of the said business. The emergence of imported cellular phones offered in the Philippines (e.g. Nokia, Apple phones, Samsung etc) were easily accepted, adored and patronized by many since the products are innovative, developed and well-designed. The local cellular phone companies, who seemed to have overlooked the opportunities, are now competing with these large-scale electronic industries by producing budget-friendly look-alike gadgets for Filipinos.

On the other hand, other businesses focus on mass-production, without thinking of the difference between selling and marketing. Selling centralizes on needs of the seller, by converting the products with cash while marketing focuses on the satisfaction of the needs of the buyer. Remember that a large ending inventory in accounting is not a good reflection of the performance of a business. Mass production has a part in the plan of strategic management, but it must follow on what the customer demands. Like in the case of Ford cars - a business whose product focuses on what will fit the market needs and desires. The result of this strategy is mass production, not the main cause.

As a conclusion, in order for a company to be successful, profitable and be able to achieve their goals, an organization must put itself in the shoes of a buying customer. The management is responsible for creating the direction of the company. He must know exactly where he himself wants to go and make sure that the whole organization knows where the path will lead. A classic example - to end this précis - is the success of Mr. Sy in the expansion of his business - from a simple shoe manufacturing store to a country-wide known Department Store and mall. He later on ventured on banking industry to