What is Marketing Myopia?

Myopia literally means short-sightedness.

Marketing Myopia is the inefficiency of

the Top Management to broadly
define its business and meet
customer needs resulting to the
decline of the product.
Examples from the real
world
Daewoo Motors

Hindustan Motors

Kinetic Honda

Pager Industry
Factors responsible for Marketing
Myopia- by Theodore Levitt
The belief of the companies that as more and more of
the population becomes affluent, the market expands
and more and more people buy the goods.
The belief that there are no substitutes for the
industry’s major products.
Emphasis on mass production and in economies of
scale i.e. being product oriented rather then being
customer oriented.
Lack of experimentation, improvement, and
manufacturing cost reduction.
CASE: Ambassador Struggle for Survival
 OVERVIEW
HM an Indian automobile manufacturer is a part of
Birla group of Industries.
The company was the largest car manufacturer in
India before the rise of Maruti Udyog Ltd. (MUL)
Ambassador launched in 1958 was known as the first
Indian car, owes its design and technology to British
car model Morris Oxford built by Morris Motor Co at
Oxford, U.K.
Ambassador quickly occupied and ruled Indian
markets from 1958-1980.
 Ambassador- SUCCESS
STORY
Ambassador was widely used as a taxicab and as a
government limousine.
It was the only car with Diesel option.
A sturdy car, ideal for Indian markets.
Perception of being less expensive to maintain.
Large Spaced.
Over 16% of brand sales came from the Indian
Government.
 Reasons for the Brand
Failure
HM never knew where they fit in the existing economy.

Ambassador never changed with times. It focussed on

only one segment till 1997 and within that time MUL was
able to bring out brands for each segment within the
nation.

HM did try to make some changes and upgrades but

overall the look and built-in quality remained the same.

Ambassador sales dipped badly in the year 2000 but HM

never bothered to rationalize the price of the brand. Even
today it costs over Rs. 400000
Contd.
Indica took away the taxi car market and the
customers got a new option for diesel car with
modern technology.
Immense competition from other major dealers like
MUL, Hyundai etc..
In the year 2002, Mr. Atal Bihari Vajpai replaced
Ambassador with a BMW Limo, from then on it lost
the position of being the first politicians’ choice.
The car lacked the quality and refinement. Rattling
sound and rustling were some of the common
complaints.
Possible Learnings
A brand exists in the market till it becomes dated,
after that it is virtually impossible to rejuvenate the
brand.
Brand must go to the customers for new ideas.
Rationalize the price in the light of emerging market.
Changes in product along with the change in market
can sustain the brand even in emerging market.
Best example is MARUTI 800, the brand is still
surviving because it made changes along with
changing consumer values and demands.