Marketing management, second lecture at IIM Bangalore, professor asked me, “What is Marketing Myopia?” I was clueless. I forgot to read the Kotler last night. Hey, it was my first week at IIM. I was still not used to late night grinds. Thanks to this incident, I internalized the concept of Marketing Myopia to the extent that I started looking for Marketing Myopia in every industry’s growth statements.
What is Marketing Myopia? It is shortsightedness like when people tend to define their industry so narrowly that they are not able to see the trends which can threaten their industry. Railroad management thought that travelers want trains rather than transportation and overlooked the growing competition from airlines, buses, trucks, and automobiles. Slide rule manufactures thought that engineers wanted slide rules and overlooked the challenge of pocket calculators. There is no such thing as growth industry. There are only growth opportunities. The organizations too often are looking into a mirror when they should be looking out of the window
Take the case of Information Technology Enabled Services (ITES) industry. The euphoria surrounding that India has hit the gold mine and ITES service export will rise to US $ 100 billion in near future. Further analysts are predicting that India has attained leadership in lower end ITES and its time to move up the value chain and India’s ITES service exports could cross US$ 175 billion by 2020 (Source: Nasscom) . There is talk of lack of human resources to cater to the forecasted demand but there is little realization about trends which could upset these forecasts.
Here also people are defining ITES narrowly and taking
Second technological trend is maturation of speech to text technology. As technology matures it will be common for speech to be translated into text with reliable accuracy. So the transcription services are going to be threatened. Another trend is automation in it self. Development of new applications which can automate the back processing work will reduce the requirement of human labor. So the back processing works are also threatened. Another trend is cloud computing, which should reduce the IT maintenance manpower drastically.
Time will tell how these trends unfold and how Indian companies respond to that. No doubt ITES will grow, but not ITES which Indian companies are considering. Sir, this is another example of Marketing Myopia.