The term marketing myopia was proposed by economist Theodore Levitt, who indicated that some companies are not far-sighted and are focused on meeting the company’s needs and not on marketing to consumers. The main idea of the theory is that the company focuses on one specific aspect of marketing and not on many different ones (Pahwa, 2021). The purpose of this essay is to trace the marketing myopia on the example of a coffee company.
An American coffee production company, according to Fair Trade standards, is called Wandering Bear Coffee. This company is an example of a company that can be called “short-sighted.” This is because the company focuses on selling coffee from poor farmers, thereby helping them earn a good income. In addition, Fair Trade coffee is aimed at preserving the environment. “Selling focuses on the needs of the seller, marketing on the needs of the buyer” (Levitt 8). This makes sense, and the goals are achieved, but this coffee is quite expensive compared to standard coffee. The company needs to understand that competition among producers of high-quality coffee in the mass market is high, and such producers can become worthy rivals and displace this company (Harvard Business Review, 2008, 1:33-1:37). Few people are ready to buy such coffee if they can buy an equally high-quality product at a lower price.
To attract customers to this product, it is necessary to form a different financial strategy since it is the cost of a pack of coffee that affects the buyer’s decision. Currently, under the influence of economic trends, for example, the level of a person’s income or the total income of all family members, their spending on life affects the purchase decision. The company is focused on the production of coffee to support farmers, but they need to change their orientation to benefit customers. For many people, it is more important to save money and buy a quality product than to take care of other people’s income, thereby increasing their expenses.
In this company, the strongest of the five competitive forces is the strength of customers. The company needs to consider that there can always be a substitute, and it is necessary to make decisions on how to be competitive in the market of similar products (Harvard Business Review, 2019, 3:56-3:58). That is, customers who are not ready to pay for coffee according to Fair Trade standards will convince other buyers that they have purchased a good pack of coffee at a reasonable price. They did not support poor farmers, this coffee does not help the environment, but customers bought a quality product that is affordable and suits their taste.
In conclusion, it will be difficult for companies that focus on one specific marketing aspect to compete with companies that use the maximum number of tools. To eliminate marketing myopia, companies need to develop their marketing strategy and review the overall development strategy. This will make it possible to be competitive and be ready for the appearance of new manufacturers on the market.
References
Harvard Business Review. (2008). The five competitive forces that shape strategy [Video]. YouTube. Web.
Harvard Business Review. (2019). The Explainer: Don’t just sell stuff — Satisfy needs [Video]. YouTube. Web.
Levitt, T. (1960). Marketing myopia. HBR.
Pahwa, A. (2021). What is marketing myopia? Feedough. Web.