"From Products to
People:
Overcoming
Marketing Myopia"
I I T B H U
M E D I A E N V I R O N M E N T
O D D S E M 2 4
Kodak
• Kodak dominated the film photography market
• Failed to adapt to digital photography revolution
• Focused on improving film quality instead of embracing digital technology
• Result: Bankruptcy in 2012
• Engineering perspective: Kodak engineers perfected film technology but
missed the bigger picture of image capture evolution
Nokia
• Once the world's largest mobile phone manufacturer
• Focused on hardware improvements and ignored software advancements
• Failed to recognize the importance of smartphones and apps
• Result: Lost market leadership to Apple and Android devices
• Engineering perspective: Nokia's engineers excelled in hardware design but
underestimated the importance of software ecosystems
Traditional Energy Companies
• Many oil and gas companies initially ignored renewable energy
• Focused on improving extraction and refining processes
• Overlooked growing demand for sustainable energy solutions
• Result: Playing catch-up in the renewable energy market
• Engineering perspective: Engineers in traditional energy sector focused on
optimizing existing technologies rather than exploring new energy paradigms
Blockbuster Focus: Physical DVD rentals
• Myopia: Ignored the shift to digital streaming
• Result: Bankruptcy, while Netflix thrived
• Engineering perspective: Failed to invest in streaming technology and
infrastructure
Xerox Focus: Photocopiers and printers
• Myopia: Invented but failed to commercialize the graphical user interface (GUI)
• Result: Missed the personal computer revolution
• Engineering perspective: Developed groundbreaking technology but failed to
recognize its broader applications
BlackBerry (RIM) Focus: Physical keyboard
smartphones for business users
• Myopia: Underestimated the appeal of touchscreen devices and consumer
market
• Result: Lost significant market share to iPhone and Android devices
• Engineering perspective: Prioritized security features over user experience and
app ecosystem
Myspace Focus: Early social networking platform
• Myopia: Failed to innovate and adapt to changing user preferences
• Result: Overtaken by Facebook and other social media platforms
• Engineering perspective: Lacked continuous improvement in user interface and
features
IBM in the PC market Focus: Enterprise hardware
and mainframes
• Myopia: Underestimated the potential of the personal computer market
• Result: Lost PC market leadership to companies like Dell and HP
• Engineering perspective: Focused on high-end systems, missing the broader
consumer market
Yahoo Focus: Web portal and search engine
• Myopia: Missed opportunities in search technology and social media
• Result: Declined in relevance, eventually acquired by Verizon
• Engineering perspective: Failed to innovate in search algorithms and
underestimated the importance of mobile platforms
Introduction to Marketing Myopia
• Marketing Myopia is a short-sighted and inward-looking approach to
marketing that focuses on the company rather than defining the company
and its products in terms of the customers’ needs and wants.
• Coined by Theodore Levitt an American economist in 1960
• Understanding this concept is key to unlocking long-term growth.
Understanding the Examples of myopic
Core Concept - views -Technology
Focuses on products, companies like Kodak,
Marketing not customer needs. Nokia and BlackBerry
myopia- the
concept They suffered from
marketing myopia by Key takeaway:
focusing too narrowly Companies should
on existing products, focus on satisfying
missing critical shifts in customer needs rather
customer needs and than just selling
market trends, leading products.
to their decline.
Impact of Marketing Myopia
Increased risk of
Consequences of Missed growth
being disrupted by
Marketing Myopia opportunities.
competitors.
Example: Kodak’s
Loss of relevance in
failure to adapt to
the market.
digital photography.
How to Avoid Marketing Myopia
• Define your business broadly
Example: Tesla defines itself as an energy company, not just a car manufacturer
• Focus on customer needs, not just product features
Example: Apple focuses on user experience, not just technical specifications
• Continuously monitor market trends and emerging technologies
Example: IBM's shift from hardware to services and cloud computing
Embrace innovation and change
Strategies for Engineers to Combat Marketing
Myopia
• Embrace interdisciplinary collaboration
- Work closely with marketing and business teams
- Understand market needs beyond technical requirements
• Adopt a customer-centric approach
- Consider user experience in product design
- Conduct user research and gather feedback
• Stay updated on industry trends
- Attend conferences, read industry publications
- Engage in continuous learning and professional development
Case Study: Amazon
• Started as an online bookstore
• Expanded to become "The Everything Store"
• Continuously innovates: AWS, Alexa, Amazon Prime
• Focuses on customer needs and long-term vision
• Engineering perspective: Amazon's engineering teams consistently push
boundaries, exploring new technologies and services beyond the company's
initial scope
Case study & N O K I A
Discusson
Nokia: From Market Leader
to Decline
• Background In the early 2000s, Nokia was the
world’s largest mobile phone manufacturer, with a
market share of over 40%.
• Success Factors Known for durable, reliable
phones and strong brand loyalty.
• Market Leader in Mobile Phones, 2000-2007
Marketing Myopia: Focusing on the Wrong
Priorities
Myopic Focus: Nokia concentrated on hardware excellence and feature phones,
neglecting the importance of software and the shift towards smartphones.
Ignored Trends: Underestimated the importance of touch-screen technology and app
ecosystems, which were gaining traction with competitors like Apple and Android.
FEATURE NOKIA PHONES (2007) SMARTPHONES (2007)
Operating Symbian OS, Series 40/60 iOS (Apple)
Marketing
System
User Interface Physical keypad, basic menu Touchscreen interface, intuitive UI
navigation
Myopia: Display Small, non-touch display Large, capacitive touchscreen
Focusing
App Ecosystem Limited, proprietary apps App Store with third-party apps
Internet Basic WAP browsers Full web browsing (Safari on
Browsing iPhone)
on the Multimedia
Features
Basic camera, music player, and Advanced multimedia (camera,
games music, video)
Wrong Connectivity 2G, some models with 3G,
Bluetooth
2G/3G, Wi-Fi, Bluetooth
Priorities
Email and Basic email support, SMS/MMS Push email, advanced messaging
Messaging features
Hardware Design Variety of designs (candy bar, Sleek, single-touchscreen design
flip, etc.)
Focus Durability, battery life, call User experience, versatility,
quality innovation
Price Point Generally more affordable Premium pricing
The Consequences of Marketing Myopia
Decline: As Apple and Android smartphones dominated, Nokia’s
market share plummeted from 40% to less than 5% in a few years.
Sale: In 2014, Nokia’s mobile phone division was sold to Microsoft,
marking the end of an era.
Lesson Learned: Focusing too narrowly on existing strengths while
ignoring market shifts can lead to rapid decline.
Assignment Netflix
• A description of the company/product and its current market position
• Analysis of potential signs of marketing myopia
• The risks the company faces if it doesn't address these issues
• Your recommendations for how the company can avoid or overcome marketing
myopia
• How you, as a future engineer, would approach product development
differently to avoid marketing myopia in this case
