TAILIEUCHUNG - MARKETING MYOPIA BY THEODORE LEVITT

The proliferation of social-networks on the Internet, has allowed companies to collect information about social-network users and their social relationships. Social networks like MySpace, Facebook, and Orkut allow us to determine who is acquainted with whom, how frequently they interact online, what interests they have in common, etc. Users are spending increasing amounts of time on social network websites. For instance, a recent survey [11] that ranks websites based on ‘average time spent by a user’, identifies MySpace and Facebook among the top 10 websites. There have been several efforts to monetize social networks [15, 17]. While most proposals are based on advertising [20], the focus of this paper is to monetize. | Marketing Myopia by Theodore Levitt Harvard Business Review Reprint 75507 HBR SEPTEMBER-OCTOBER 1975 Marketing Myopia by Theodore Levitt Every major industry was once a growth industry. But some that are now riding a wave of growth enthusiasm are very much in the shadow of decline. Others which are thought of as seasoned growth industries have actually stopped growing. In every case the reason growth is threatened slowed or stopped is not because the market is saturated. It is because there has been a failure of management. Fateful purposes. The failure is at the top. The executives responsible for it in the last analysis are those who deal with broad aims and policies. Thus The railroads did not stop growing because the need for passenger and freight transportation declined. That grew. The railroads are in trouble today not because the need was filled by others cars trucks airplanes even telephones but because it was not filled by the railroads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry incorrectly was that they were railroad-oriented instead of transportation-oriented they were product-oriented instead of customer-oriented. Hollywood barely escaped being totally ravished by television. Actually all the established film companies went through drastic reorganizations. Some simply disappeared. All of them got into trouble not because of TV s inroads but because of their own myopia. As with the railroads Hollywood defined its business incorrectly. It thought it was in the movie business when it was actually in the entertainment business. Movies implied a specific limited product. This produced a fatuous contentment which Howcan a company ensure its continued growth In 1960 Marketing Myopia answered that question in a new and challenging way by urging organizations to define their industries broadly to take .

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