08 Apr Marketing Myopia or Nokia Failure Analysis
Marketing is the process of exchanging the needs and wants of potential buyers and then providing goods and services that meet or exceed the expectations of those buyers. It has a vital role in the success of businesses.
The marketing concept is based on marketing and uses marketing data to focus on the needs of customers to develop marketing strategies that not only satisfy the needs of the customers but also the achieve the goals of the organization.
The marketing concept is oriented toward the needs and wants of the customers so the organization can differentiate its product from contestants’ offerings. This text aims to define marketing myopia and to describe the relationship between the marketing concept and the marketing myopia.
The marketing approach which focuses on the fulfillment of the direct needs of the company is the marketing myopia. This marketing approach results in cases when companies are more focused on selling rather than building relationships with the customers. Also, they are not changing with the rapid changes in the market.
Though the marketing concept and marketing myopia are different, they both require similar steps. Marketing myopia tries to understand customer desires, be ground-breaking, conduct marketing research programs and utilize marketing strategies. Marketing myopia is the tendency of a company to describe themselves by the product they make.
No marketing concept leads directly to marketing myopia because marketing myopia is the product of losing a marketing focus. However, a focus on product innovation can lead to marketing myopia, if that product innovation is not customer-centric.
Nokia Failure Analysis
The best example of marketing myopia represents Nokia. Nokia was the most famous mobile phone manufacturer in the world. The company recently became notorious for losing its marketing share due to Android devices and iOS. Despite its strong position, Nokia lost out because it failed to understand the future needs of customers.
During the time Nokia had a leading position, they focused on their own sales targets. It focused all its resources thinking that it is in a growing industry and overlooked the future needs of customers. Nokia managers thought the mobile phone was only for messages, calls and some snake games, which was wrong. They were not able to abandon the existing business model as these had become integrated with the very identity of the company.
Other companies like Samsung and Apple changed themselves organizationally and introduced innovations in favor of their customers. They improved product customer satisfaction, with the Global Positioning System, internet, and media, which Nokia passed to implement. Thus, following the needs of the customers is very important in order to achieve success in business.
The attributes like product quality, service quality, and consistency can help the company sell its products. These attributes can help in the present, but it cannot support the future of the company. Nokia failed to introduce attractive technology and features on its phones. They also did not anticipate customer needs, as they are the key to sustainable business development.
Marketing myopia is a reminder of the threats that a company may face if it does not pay close attention to customer needs and commerce trends. Instead of selling what the company is producing, it is better to look for the future needs of the customers to find profitable business opportunities. Businesses do not need highly sophisticated innovations to sustain in the market; they need to find out the present and future needs of the customers.