Monday, March 9, 2009

Origins of Marketing Myopia Concept and its applicability for the current business context

Origins of Marketing Myopia Concept and Its Applicability for the
Current Business Context

Marketing is a word based on a certain concept of:
as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. [1] The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to sell goods or services.
that has no history more than one century in its literal form as what it suggested in the online etymology dictionary.
According to Naomi Klein [NO LOGO] the origins of marketing is the origins of the capitalism and hence the origin of the "factory" for the first time in mankind. Forming the "factory" made the mankind to experience how the capitalism works in reality making a class of salary paid workers in the civilization for the first time. This was the time earliest of nineteenth century which was opening the doors to the new science and the technology what they called the ways of changing the lives. At the beginning once Edison invented the electric bulb[of course domestic electricity distribution system is the most pioneering technology came in to scenario next to the inventions of the domestic usages of electric power![i.e. bulb,radio,heater,iron,cooker,...,etc.] it made to people to change from oil lamp to electric bulb , is a paradigm shift in the usual lives of the urbanites.

In many cases, just to brief the ideas of this sudden industrial revolution happened in Europe and America based on steam engine invention and its application into the locomotives and ships [tranportation industry] and textile industry, made a revolutionary effect on production. This historical stage shifted the use of animal labor into machine labor gradually and again creating a huge demand on human labor for the mass production of human basic requirements. At the beginning whole production was focused on food, clothing and primitive usages. At this time it was noticeable the origins of advertising shedding its light on and the origin of the markets that the new products could be sold. but in contrary the factory made food and other stuff was not attracted to these markets as the targetted consumers were in such a fear of consuming machine made items at that time. So the manufacturers introduce human marks or logos [eg. aunt Jemima]on the labels of the products that made people to make their mind that it is having a human touch which made people to trust the product and buy. before this industrial revolution, all the goods and food were in the stores just packed in bulky forms such as in gunny bags which were sold in the retail outlets. [eg. oates, wheat, milk in bottles in fact basic needs in basic forms! ]

So this primitive packaging suddenly changed into a more fancy looking packaging with humanistic logos. It should be noted that this packaging revolution is only just to attract people but not to make them happy. The concept origins the product orientation as these food and textile products were came to the market whatever the factory could produce with the qualilty that they could achieve nevertheless the customer expectation. There were no any consideration on which they made upon reagarding the costomer satisfaction. The popular theory widely adopted was, if something is produced there exist a buyer somewhere to buy that product! This is the theory of Say, the popular intellectual in that era, so, this was called Say's Law of Markets.

Though, his time , 1767-1832 as a French businessman and an economist, this theory was pro-founded the fundemental elements of later works of economic theoreticians. When the Wealth of Nations published by, so called father of modern economics [capitalism] , Adam Smith, this was the most distinguish work on that time as well as now a day’s next to Das Capital which was published by Karl Marx in 1867 giving an insight to the mechanics of capitalism since then. The mass production was always product oriented as the communism never suggest the profit over useless advertising or other means which suggest anything falsifying the generic form of the basic needs.
In fact Marxism has no such customer orientation in consumables. Basic needs are only in its generic form for the survival. no fancy packaging and this and that to cheat customers. obviously its more realistic. anyway human nature towards the machine made products or the DESIRE was not sufficiently explained by Freudian theories at this time to manipulate the psychological segements of the markets , hence product orientation made customers more frustrated than the markets who were following customer oriented such as western economies. This may have risen the sufferings of the Russian communities resulting Mikhail Sergeyevich Gorbachev to make use of this suffering enviroenment to execute his reforms in economy and politico as Glasnot and Perestroika. later on gradually socialism get in to the dome of capitalism and cold war ends up. In any case this failure of state can be treated as a result of being product orientation too much. May be capitalistic theoriticians get big smiles on their faces reading this line!
but all these happened in 90's but we are still analysing the context of Theodore Levitts Myopian state.

Sooner the situation in America was the time that Adam's theories on free market and production with the relationships of the money had been practiced successfully till the inflation came into the economy US Historical Inflation Ancient Graphical Chart
that without giving the deflation which was suppose to be the co-force of balancing the inflation. This inflation is created gradually in American grounds as the advertising rising in the domain of markets which was resulted by the new comers into the markets for the same productions with faster machines and technologies. Since then the actual value of a product or service start to deteriorate and falsified by many ways. Aftermath of this customers paid more than the products actual price and hence the monetary market experienced more currency printing much more than actually required. Always the civilization had an inflation of course all the time whatever exchanged in which way it will always produced excess that was the profit in broader sense which exagerated by means of advertising. This is the time that advertising finds its role in the economic paradigm and this tends to research the human behavior in more deeply based on Freudian theories but at the edge Lacan found the more realistic co-foundations of constituents fo DESIRE formula as a social construction, these Lacanian model on psycho-analysis turned the advertising into a new dimension in the business world. At the begining advertising gurus were concentrating humans , as their desire is inbuilt or inherited into the deep layers of selfconciousness. This is the starting point of the real capitalism that makes the product for the satiety of the consumer. So the product orientation is no more in positive side of the growing aspects of the markets hence researches were initiated on this crisis of failures of most of the dominant companies. so this is the time just after mid fifties of twentieth century hence this Theodor Levitt came with this thesis guiding the misdirected production economy into a another paradigm of concentrating the customer which, so called, the customer orientation.

Now the time to concentrate the highest intellectuals of academy on business to deal the problem, in the mean time, so Harvard Business School comes into the scenario, as it did always, assigning Dr. Theodor Levitt to dig the matter and produce a thesis on this latest observations in the declining markets and obsolesce of huge companies in a while, in the economic
arena. This Theodore Levitt's paper made significant changes in business policies and CEOs thinking into business, widening more markets and more psychological segments and the system started in a new direction successfully, resulting hundreds of "milks" in the shelves making more freedom to decide which "milk" you want to consume!
so the Lacanian Model made the real foundations for the Brand Orientation, in fact.

Whatever Theodore said about on the subject of the customer orientation, based on the experience of 60's , after recognition of his marketing myopia or the shortsightedness[myopia] in business, it has flew a long distance since then and this advertising era had taken control over the consumers the way that Theodor never expected. Now the concept has been transfigured into brand orientation which has resulted to buy things looking at the brand itself. most historical example is sewing machines, came under brand SINGER, now it has adopted into electronics industry and people are having more trend to buy the SINGER branded TV as they unintentionally believing it is having the same quality of sewing machines of the same brand, hence now all the past commitment they did to make raise this Brand has started to pay them back. The list of brands will starts from anything nowadays like Sony, Pepsi, Microsoft, Nokia, Toyota, BMW , etc etc this will go endlessly!
[here you can see brands A to Z Brands!]

How really these brands control on customer behaviour?

this can be answered by a very small example and we can conclude there doesn't exist any more customer orientation in current context!

go to so called KFC to have your expensive middle class meal with Kentucky Fried Chicken , a well internationally branded fast food outlets, and you have to have PEPSI with your meal but not COCA-COLA , even though your desire is COCA-COLA!!!

you have to go McDonald's to have a similar meal with COCA-COLA but not with Kentucky Fried Chicken! how poor the customer is now?

so who had decided what and which you should consume?
1. Marketing Myopia, Dr. Theodore Levitt, Harvard Business Review 1975
2. Naomi Klein , NO LOGO
3. Adams Smith, The Wealth of Nations (1776)
4. Das Kapital, Karl Marx (1867)

1 කුළිය:

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