marketing myopia

(noun)

Marketing myopia occurs when companies incorrectly identify the extent of their competition.

Related Terms

Examples of marketing myopia in the following topics:

  • Monitoring Competition

    • Marketing expert Theodore Levitt coined the term "marketing myopia" several years ago to describe companies that incorrectly identify their competition.
    • Since practically no marketer operates as a monopoly, most of the strategy issues considered by a marketer relate to competition.
    • In fact, the relative market share owned by Coke and Pepsi has not changed by more than a percentage or two despite the billions of dollars spent by each on marketing.
    • More is said about this process in the integrated marketing box that follows.
    • Classify the purpose of and methodology of monitoring competition from a marketing perspective

  • The 4 P's of Marketing

  • Marketing Performance Metrics

    • Marketing metrics are numeric data that allow marketers to evaluate their performance against organizational goals.
    • Marketing metrics provide frameworks that public relations specialists, brand managers and marketing directors can use to evaluate marketing performance, as well as back their marketing plans and strategies.
    • By collecting and analyzing marketing metrics, brands can build their marketing performance in the following ways:
    • ROMI, a relatively new metric, is marketing contribution attributable to marketing (net of marketing spending), divided by the marketing "invested" or risked.
    • [Incremental Revenue Attributable to Marketing * Contribution Margin (%) - Marketing Spending] / Marketing Spending ($)

  • Service Marketing Management and Metrics

    • Service marketing management oversees the implementation of marketing programs, while metrics measure their effectiveness and performance.
    • Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.
    • Overseeing the successful development and execution of the marketing plan falls under service marketing management roles.
    • It is the responsibility of marketing managers--in the marketing department or elsewhere--to ensure that the execution of marketing programs achieves the desired objectives in a cost-efficient manner.
    • Explain how marketing management and metrics allow service organizations to implement and measure their marketing strategy

  • Methods for Evaluating Marketing Performance

    • KPIs, ROMI, and Accountable Marketing are all metrics that are used to track marketing performance.
    • Marketing Performance Measurement, Marketing Performance Management, Marketing Return on Investment (ROI), Return on Marketing Investment (ROMI), and Accountable Marketing are all metrics that companies use to connect marketing performance to the financial performance of the organization.
    • In order for marketing KPIs to be integrated within the business and management of the enterprise, and ensure consistency and reliability across the marketing mix, they must meet these minimum requirements:
    • Since marketing campaigns are typically integrated across all channels (e.g., print, email, and social media), these channels are measured together to understand the overall effect on target markets.
    • Companies using formalized methodologies continually gather and monitor marketing data to understand where the marketing plan is strong and where it needs improvement.

  • The Importance of Evaluating Marketing Performance

    • Evaluating marketing performance guides future marketing initiatives and helps a company achieve its goals.
    • Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals, but also for non-marketing executives.
    • From the chief executive officer to the vice president of sales, the senior management team needs marketing KPIs to gauge how marketing activities and spending impact the company's bottom line.
    • As marketers face more and more pressure to show a return on investment (ROI) on their activities, marketing performance metrics help measure the degree to which marketing spending contributes to profits.
    • Establishing marketing performance metrics is integral to helping brands satisfy customers, establishing a clear company image, being proactive in the market, and fully incorporating marketing into the company's overall business strategy.

  • Selecting Target Markets

    • Selecting and aiming marketing efforts to the correct target market for a product will help its success.
    • A well-defined target market is the first element to a marketing strategy.
    • While we have defined target markets in a general sense, it is still useful to discuss the characteristics of the primary types of markets: (1) consumer markets, (2) industrial markers, (3) institutional markets, and (4) reseller markets.
    • Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing or niche marketing.
    • Mass marketing - Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

  • Calculating Market Share

    • Unit market share (%) = 100 * Unit sales(#) / Total Market Unit Sales(#)
    • Unit sales (#) = Unit market share (%) * Total Market Unit Sales (#) / 100
    • Total Market Unit Sales (#) = 100 * Unit sales (#) / Unit market share (%)
    • -- Revenue market share: Revenue market share differs from unit market share in that it reflects the prices at which goods are sold.
    • However, market share is not a perfect proxy of market dominance.

  • B2B vs. Consumer Marketing: Similarities and Differences

    • B2B markets to individuals acting on behalf of organizations, while consumer marketing targets single individuals who pay for their own transactions.
    • A business marketing, or business-to-business (B2B) marketing, sale is made to a business or firm.
    • Sales representatives and marketers are often assigned to market to individuals who act as influencers or decision-makers in the customer organization.
    • Marketing to a business and marketing to an individual are similar in terms of the fundamental principles of marketing.
    • Both B2C and B2B marketing objectives reflect the fundamental principles of the marketing mix, and in both situations, the marketer must always:

  • What Are Markets

    • The Market is People: Since exchange involves two or more people, the market can be thought of as people, individuals, or groups.
    • The Market is a Place: The market can also be thought of as a place or as a geographical area within which trading occurs.
    • International markets, American markets, a shopping center, and even the site of a single retail store can be called a market.
    • The terms buyer's market and seller's market describe different conditions of bargaining strength.
    • The primary types of markets are consumer markets, industrial markets, institutional markets, and reseller markets.